8th Feb 2008 07:00
Xtract Energy plc08 February 2008 8 February 2008 AIM: XTR XTRACT ENERGY PLC ("Xtract" or the "Company") INVESTMENT UPDATE - WASABI ENERGY LTD Xtract is pleased to update shareholders on two recent developments at itsinvestee company Wasabi Energy Ltd ("Wasabi"). Xtract currently holdsapproximately 35.4% of Wasabi. 1. Greenearth Energy Ltd (ASX:GER)Greenearth Energy Ltd ("Greenearth") was admitted to the Official List of ASXLimited on Thursday 31 January 2008. Official quotation of Greenearth'ssecurities commenced on Monday 4 February 2008. Greenearth's principalactivities are the exploration and development of geothermal resources inAustralia. Wasabi holds approximately 12.5% of Greenearth. 2. Aviva Corporation Ltd (ASX:AVA)Xtract is pleased to refer shareholders to the following press release announcedby integrated coal to energy company Aviva Corporation Ltd ('Aviva') inAustralia on 7 February 2008. Wasabi holds approximately 11.9% of Aviva. Commenting on the recent developments, Andy Morrison, Xtract CEO said, "WasabiEnergy continues to be a valuable incubator of high potential new businesses" "AVIVA ANNOUNCES A COAL RESOURCE OF OVER ONE BILLION TONNES AT MMAMANTSWE Integrated energy company Aviva Corporation Limited (ASX:AVA), today announcesan initial resource estimate of 1.287 billion tonnes of coal at the MmamantsweCoal Project in Botswana. The result is a major resource boost for Aviva, and is more than double the600Mt target proposed in April 2007 when the prospecting licences were granted. Aviva CEO, Mr Lindsay Reed, said the initial resource estimate highlighted thepotential of the project, where Aviva has been investigating the merit of a1,500MW power station. "The resource estimate affirms the Mmamantswe Project as very low strip ratioopen pit thermal coal deposit, with the potential to supply the six milliontonnes per annum required to support the 1,500MW power project," Mr Reed said. "The in situ tonnage of 1.3 billion tonnes significantly exceeds the 600 milliontarget set by the company, and is a major milestone in the development of theproject," he said. Coal quality is in line with expectations, and testwork confirms that aroundhalf the ash is removed at high relative densities of 1.8-1.9. The average overburden cover in the resource area suggests a stripping ratio ofaround 1bcm/tonne of in-situ coal. Drilling revealed that the volume of the coal basin was larger than targetedbecause the thickness of the carbonaceous sequence persisted further to the westthan anticipated. Coal quality test work results received to date confirm thecoal content of the carbonaceous sequence also persists to the west. Resource estimate Total RD 1.90 RD 1.80Volume Mm3 658.4 658.4 658.4Ash %ad 57.7 30.5 25.2Calorific volume GJ/t ad 9.2 18.2 20.1Fixed Carbon % ad 21.3 40.2 43.6Inherent Moisture % ad 3.3 5.0 5.3Relative Density 2.0Sulfur % ad 0.8 0.4 0.4Volatiles % ad 17.6 24.4 25.9Cumulative Yield % 51.8 41.2Thickness M 43.7 43.7 43.7Tonnes Mt 1,287.9 648.3 487.9 The coal quality test work confirms Aviva's expectation that the coal would beamenable to beneficiation at a relatively high cut point. Cumulative floats inthe 1.8 to 1.9 relative density range show 50% reduction in ash at a 40-50%yield. The calorific value of the coal in these cumulative floats ranged from18-20 GJ/tonne which is at the high end of the company's expectation.Particularly pleasing is the sulphur content of 0.84% which is reduced to lessthan 0.5% in the cumulative floats. The resource estimate is based on a 32 hole 3500m drill program. Of these holes23 intersected coal and have been utilised in the resource volume calculation.Coal quality test work results for 13 of these holes were used to model the coalquality parameters. Coal quality results from another nine holes are nowavailable and will be incorporated in the resource model. It is expected thatthese results will upgrade some of the resource from the Inferred to Indicatedcategory. A drill hole location map, table of drill holes, description of coalzoning and break down of the resource estimated by zone is appended to thisrelease. A new drilling program to upgrade the deposit to reserve is currently beingplanned to commence in late March. The program will comprise 150-250 holes andwill be designed to upgrade the resource to reserve status. The drill programwill increase the density of coal quality information across the deposit, enablecoal preparation test work and design to be completed and provide a compositesample of a representative washed product for combustion test work to enableboiler design." Further information on Aviva can be found at www.avivacorp.com.au. As an ASXlisted company, Aviva is not subject to the AIM Rules and this resource updatehas not been reviewed by a named "qualified person" from Xtract or an appointedadviser of Xtract as defined and required by the AIM 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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