10th Dec 2007 14:53
Xtract Energy plc10 December 2007 10 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 releaseannounced in Australia by MEO Australia Ltd ("MEO"). Xtract currently holds approximately 21.3% of the issued capital of MEO. "HERON-2 WELL UPDATE GAS BEARING HERON NORTH ELANG/PLOVER FM ENCOUNTERED MELBOURNE, AUSTRALIA (December 10, 2007) -- MEO Australia Limited (ASX: MEO)advises the market that the Heron-2 well has reached a depth of 3983m and iscurrently preparing to run logs ahead of setting a 7 inch liner. The well intersected the Elang Formation, at a depth of 3929m. The Top PloverFormation is provisionally picked at 3948m. Both of these sand units haveindications they are gas charged in Heron-2. Interpreted good quality mediumgrained Plover sand was encountered from 3973m to 3983m with mud losses of up to60 bbls/hour, which is being considered as indicative of good reservoirpermeability. The forward plan is to set the 7 inch liner to isolate the over-pressuredFlamingo Formation. This will allow a slight reduction in mud weight to reducethe losses for the completion of drilling through the remainder of the PloverFormation that is interpreted to be gas charged.This configuration also allowsfor the possibility of a barefoot production test of the Heron North PloverFormation subject to confirmation of reservoir parameters by further drillingand logging, and subject to Joint Venture approval. Preliminary drilling results of the Plover Formation penetrated to date include: • A wet gas fingerprint based on mud log C1 to C5 values; • Nominal (1000 - 1400 ppm) carbon dioxide (CO2) levels recorded by mud gas detection systems while drilling; • Plover sands are in-part weakly cemented and friable; • Elang and Plover Formations appear to be substantially (-35%) over-pressured relative to regional Plover sands. Independent calculation conducted by GeoMechanics International Inc. of theprobable Heron Plover pore pressure based on regional Plover Formation porepressure data appear to have been exceeded by approximately 35%. 3D seismicinterpretation indicates that the Heron Plover structures are juxtaposed againsta thick sequence of Flamingo Formation, which modelling suggests is currentlygenerating wet gas. Additional gas charge from the Flamingo could explain theelevated pore pressure in Heron North. Heron-2 encountered gas in the Elang/Plover Formations 237m up-dip of a knowngas bearing interval in Heron-1. Pre-drill interpretation of 3D seismic suggeststhe Heron North and Heron South structures are connected with a common observedflat event at 4260m, interpreted to be coincident with the structural spillpoint and possibly representing a gaswater- contact (GWC). The combination of awet gas fingerprint, presence of CO2 and the high pore pressure are consideredstrong evidence of a gas charged reservoir. MEO expects to commence drilling the 6 inch hole in the week commencing December17, 2007. The participants in the Heron-2 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%" Xtract also notes the announcement that trading in MEO's shares on the ASX hasbeen suspended at MEO's request, pending the release of a further announcement. 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 Corporate David Jones Finance Limited Azhic Basirov +44 (0) 20 7131 4000 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 50.41% 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 overmining tenements in the Julia Creek area of Queensland and has recently beengranted an exploration permit which gives rights to explore for oil shale in anarea in the South of New Zealand. It is investigating the commercial productionof 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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