7th Aug 2006 07:01
Cambrian Mining PLC07 August 2006 CAMBRIAN MINING PLC ("Cambrian" or "the Company") Cambrian purchases 51% (fully diluted) of Xtract Energy Plc The Board of Cambrian is pleased to announce that the Company has entered into asale and purchase agreement to purchase 110,000,000 ordinary shares in XtractEnergy Plc ("Xtract Energy"). Completion of the purchase is expected this week.Once completed, Cambrian will control 57.6% of the current issued capital ofXtract Energy (50.5% on a fully diluted basis.). Cambrian has purchased the 110,000,000 ordinary shares on a 1 for 25 shareexchange basis, resulting in the issue of 4,400,000 new ordinary shares inCambrian. As at the close of business on 4th August 2006 this represents aprice of 5.9p per Xtract Energy share, a premium of 14.6% to the previous 10 dayaverage closing price. About Xtract Energy: Xtract Energy was formed in October 2004 (previously Resmex plc) to invest inenergy and mineral resources in Europe, North America and Australia. XtractEnergy has subsequently built up a significant portfolio of oil shale resourcetenements in Australia and has applied for exploration permit in New Zealand.Xtract Energy, in conjunction with Australia's CSIRO (Commonwealth Scientificand Industrial Research Organisation), aims to develop commercially effectivetechnology to unlock oil reserves in oil shale deposits in Queensland, Australia The Queensland deposits, known as Julia Creek, contain substantial quantitiesof oil. In one particular part of the deposit, called Area C, there are 415million barrels of In Situ resources. John Byrne, CEO of Cambrian commented on the acquisition that "we are pleasedto take a majority position in Xtract Energy. We see huge potential in thecompany's Oil Shale technology, but also believe Xtract Energy will provideCambrian access to new opportunities across the energy sector." Ends For further information contact: Cambrian Mining Plc +44 20 7409 0890Alwyn Davey / John Byrne Parkgreen Communications +44 20 7493 3713Cathy Malins / Annabel Leather This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Xtract