31st Jan 2008 12:33
Xtract Energy plc31 January 2008 31 January 2008 AIM: XTR XTRACT ENERGY PLC ("Xtract" or the "Company") PROJECT UPDATE - MEO Australia Ltd Xtract refers shareholders to the following press release announced today inAustralia by MEO Australia Ltd ("MEO"). Xtract currently holds approximately 15.7% of the issued capital of MEO. "ASX AND MEDIA RELEASE HERON-2 WELL WEEKLY DRILLING REPORT - No 14 Key Points: •Heron-2 well plugged and abandoned •Rig successfully moved and pinned over Blackwood-1 location •Blackwood-1 spud date February 1, 2008 MELBOURNE, AUSTRALIA (January 31, 2008) - MEO Australia Limited (ASX: MEO)submits this final Heron-2 drilling report for the period ending 1000 hours,January 30, 2008. The Heron-2 well was spudded at 2230 hours (ACST) on October12, 2007 in Exploration Permit, NT/P68. The West Atlas has successfully plugged the Heron-2 well. The rig moved off theHeron-2 location at 2200 hours, January 29, 2008. At approximately 9am January30, 2008, the rig had pinned to the seafloor over the Blackwood-1 location. MEOexpects to spud Blackwood-1 on February 1, 2008 Heron-2 was drilled by Seadrill's West Atlas jack-up rig contracted to MEO fortwo firm wells. The Heron-2 well was designed as a vertical well to penetrateand production test the Epenarra Darwin Formation and the deeper Elang/PloverFormation of the Heron North structure. Open-hole production testing of theElang/Plover Formation was conducted in Heron-2 and while it was confirmed thatthe Plover sands did not contribute to the recorded flow due to blockages in thewell immediately above the Plover formation, the Elang sands did flow gas tosurface at a maximum rate exceeding 6 MMscf/day. The Darwin formation was subsequently production tested in Heron-2. While theevidence from electric logs of gas saturation and the presence of somesignificant fractures in the perforated section appeared to be positive, thewell only produced minor quantitities of hydrocarbons to surface and failed toproduce a consistent flow. The joint venture is presently reviewing the Heron-2well, 3D seismic and inversion data to determine the reasons for the lack ofpermeability through the Darwin formation at this specific location. The jointventure continues to believe that significant resources may still exist in theEpenarra and Heron structures. The General Meeting Presentation lodged with ASXon January 24, 2008 provides a more comprehensive review of the Heron-2 wellresults. The participants in the Heron-2 well and permit are:TSP Arafura Petroleum Pty Ltd (MEO subsidiary) 45%Oz-Exoil Pty Ltd (MEO subsidiary) 45%Petrofac Energy Developments Oceania (Petrofac Limited Subsidiary) 10% C.R. Hart, Managing DirectorMEO Austalia LimitedNT/P68" 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 +44 (0) 20 7131 4000Finance Limited 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 together with its wholly ownedsubsidiary Cambrian Investments Holdings Limited holds approximately 50.12% ofthe issued share capital of the Company. 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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