15th Oct 2007 14:11
Xtract Energy plc15 October 2007 15 October 2007 AIM: XTR XTRACT ENERGY PLC ("Xtract" or the "Company") PROJECT UPDATE - MEO AUSTRALIA Xtract Energy Plc ("Xtract") is pleased to note the announcement by investeecompany MEO Australia Limited ("MEO") advising that the Heron-2 well was spuddedon Friday 12 October 2007 in Exploration Permit NT/P68. Xtract is the largestshareholder in MEO holding approximately 21.3% of the issued capital. The permit is owned by MEO (90%) and Petrofac Energy Developments Oceania Ltd.(10%). MEO operates the permit. The planned total depth of the Heron-2 well is 4,300 metres below the seafloor.Depending on the results of Heron-2, the permit partners plan to drill Heron-3,which is designed as a horizontal well through a zone anticipated to be highlyfractured in the Darwin Formation, to test well deliverability. Further information on MEO can be found at www.meoaustralia.com.au 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 MEO The MEO business plan is centred on the development of gas-to-liquids (GTL)projects in the Australian waters of the Timor Sea, approximately 275 kmnorthwest of Darwin, in an area known as Tassie Shoal. The company has securedAustralian Commonwealth Government environmental approvals for two large-scalemethanol plants (1.8 mtpa) and an LNG plant (3 mtpa) that are valid until 2052. Tassie Shoal is an area of shallow water adjacent to the Evans Shoal gas fieldand is located around 25km east of MEO's exploration permit, NT/P68. MEO mappinghas identified five large structures in NT/P68 two of which were intersected bythe Heron-1 well drilled in 1972, confirming gas columns. The resourcescontained in NT/P68 provides significant valuation upside by potentiallyproviding a feedstock for the GTL projects as an alternative to possible thirdparty gas supply from nearby resources. 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 51.6% of issued share capital. A short description of the principal assets of Xtract other than MEO is set outbelow. These assets are either held directly or through wholly ownedsubsidiaries of the Company. 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 Shale Xtract 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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