The company, which was once solely focused in the North Sea, told the market today that drilling is expected to start in a week on the SL 103229 well-1 targeting the Pompano gas prospect with an estimated 18.7 billion cubic feet of 2P reserves.

This follows the execution of a drilling contract by operator Buccaneer Energy with Hercules Offshore.

The well, located in 17m of water 145km southwest of Houston, will be directionally drilled at the field’s existing ‘B’ satellite structure to a true vertical depth of 7550 feet (2301m).

Drilling is designed to test and develop seven gas sands from a depth of 3800 feet to total depth that have produced nearby within the field.

“Drilling from the ‘B’ structure allows the well to be connected to existing flowlines to the field’s ‘A’ production platform about 1750 ft to the southeast, and to be placed on production quickly after completion,” Buccaneer said in a statement.

As well as this commitment well, Elixir has options to participate in an additional five wells at the Pompano field.

The first four well locations, including the commitment well, have independently assessed 2P reserves of 56Bcf and 3P reserves of 147Bcf.

Elixir holds a 25% stake in this project, following its merger with Gawler Resources to create what it described as an emerging Gulf of Mexico production company with high-impact North Sea exploration.

Amongst other things, the merged entity owns a 30% working interest in the High Island oil and gas development project in shallow water offshore Texas.