27th Dec 2007 11:47
Xtract Energy plc27 December 2007 27 December 2007 AIM: XTR XTRACT ENERGY PLC ("Xtract" or the "Company") PROJECT UPDATE - MEO Australia Ltd Xtract is pleased to refer shareholders to the following press releaseinformation announced in Australia by MEO Australia Ltd ("MEO") today. Xtract currently holds approximately 15.7% of the issued capital of MEO. HERON-2 WELL WEEKLY DRILLING REPORT - No 11 Key Points: • Current 6 inch hole depth: 4182m • Preparing to log well MELBOURNE, AUSTRALIA (December 27, 2007) -- MEO Australia Limited (ASX: MEO)submits this drilling report for the period ending 0900 hours, December 27,2007. The Heron-2 well was spudded at 2230 hours (ACST) on October 12, 2007 inExploration Permit, NT/P68. The rig has drilled the 6 inch hole to a depth of 4182m and is continuing torecord significant mud gas readings in the Plover formation target reservoir.The well has sustained significant mud losses from increased permeability,possibly due to fracture/fault development in the section. The losses have beencontrolled by LCM (loss circulation material) treatment and mud weight reductionto 1.115 SG or 9.3 ppg. The rig is preparing to run logs. The joint venturepartners expect to review log data and then decide to continuedrilling atreduced mud weights to the prognosed total depth of 4300m or commence productiontesting. The participants in the well are: TSP Arafura Petroleum Pty Ltd (MEO subsidiary) 45% Oz-Exoil Pty Ltd (MEO subsidiary) 45% Petrofac Energy Developments Oceania Ltd (Petrofac Limited subsidiary 10% Heron-2 is being drilled by Seadrill's West Atlas jack-up rig contracted to MEOfor two firm wells and one option well. The Heron-2 well is designed as avertical well to penetrate and production test the Epenarra Darwin Formation andthe deeper Elang/Plover Formation of the Heron North structure. The Heron-1 well drilled by ARCO in 1972 intersected a 52m gas bearing column inthe Darwin Formation (a fractured carbonate reservoir) within the 1,200 square km mapped closure of the large Epenarra structure. Heron-1 also reached a gascharged zone in the deeper underlying Elang/Plover horizon, which is a secondaryobjective for the Heron-2 well. Further information on MEO can be found at www.meoaustralia.com.au. As an ASXlisted company, MEO is not subject to the AIM Rules and this drilling update hasnot been reviewed by a named "qualified person" as defined and required by theAIM Guidance Note for Mining, Oil and Gas Companies. Enquiries please contact: Xtract Energy plc Andy Morrison, CEO +44 (0) 20 7079 1798 Smith & Williamson CorporateFinance Limited David Jones +44 (0) 20 7131 4000 Azhic Basirov Scott Harris Stephen Scott +44 (0) 20 7653 0030 Annabel Michie For further Information on Xtract please visit www.xtractenergy.co.uk About Xtract Energy Plc Xtract identifies and invests in a diversified portfolio of early stage energysector technologies and businesses with very significant growth potential. Weaim to work closely with the associated management teams to achieve criticalproject milestones, to finance later development stages and to build andcrystallise value for all shareholders and partners. Xtract is supported by its cornerstone investor, Cambrian Mining Plc (AIM:CBM) adiversified resource investment house which holds approximately 50.3% of issuedshare capital. A short description of the principal assets of Xtract is set out below. Theseassets are either held directly or through wholly owned subsidiaries of theCompany. MEO Australia MEO is focused on developing gas-to-liquids ("GTL") projects in the Timor SeaAustralia, in an area of shallow water known as Tassie Shoal. It has securedCommonwealth Government environmental approvals for two large scale (1.8 Mtpa)methanol plants (50 per cent. interest) and a 3 Mtpa LNG plant (100 per cent.interest) which are adjacent to the Evans Shoal gas field. Elko Energy Elko is an oil & gas exploration company which has an interest in a 5,370km2exploration and production licence in the Danish North Sea and an investment inDragon Energy Inc, a private Canadian company, with a development project inGansu Province, China. Wasabi Energy Wasabi is a diversified investor in renewable energy and low greenhouse emissiontechnologies, with interests in geothermal waste/heat, uranium exploration inAustralia's Northern Territory and biodiesel investments in Victoria. Central Asian Interests Xtract's Central Asian interests include a production sharing agreement withKyrgyzneftegaz to instigate a water injection project on the Beshkent- Togap oilfield. Xtract also holds interests in several exploration licences in the TashKumyr area and in the Toktogul exploration licence. Oil ShaleXtract has oil shale and related petroleum product exploration rights over mining tenements in the Julia Creek area of Queensland and has recently been granted an exploration permit which gives rights to explore for oil shale in an area in the South of New Zealand. It is investigating the commercial production of hydrocarbons (crude oil) from oil shale. Xtract is also available for trading on the open market segment of the FrankfurtStock Exchange (ticker R9X.FSE). This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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