28th Dec 2007 10:49
Xtract Energy plc28 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 UPDATE DECISION TO PRODUCTION TEST HERON NORTH PLOVER RESERVOIR MELBOURNE, AUSTRALIA (December 28, 2007) -- MEO Australia Limited (ASX: MEO)advises the market that the Company has today approved production testing of thegas charged zones of the Heron North Elang/Plover formation reservoir in theHeron-2 well. 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% Higher bottom hole temperatures did not allow logging while drilling through theElang/Plover formation. At a drilled depther of 4182m, the drill string waspulled from the borehole and a separate high temperature logging suite wasacquired through the Elang/Plover formation. Preliminary petrophysical analysishas confirmed that 202m of Plover formation gross section has been drilled todate with approximately 164m of gross sandstone. Initial results of the drilling and logging in the Plover formation indicate: - Upper Plover formation sandstone unit observed from 3980m to 4081m; - Middle Plover formation appearing to be a siltstone unit: 4081m - 4119m; - Lower Plover formation sandstone unit observed from 4119m to 4182m (current TD of well); - Gross Plover formation sandstone interval of 164m; - Based on preliminary log interpretation, these sandstones appear to be gas charged; - Initial mud log indications while drilling suggest wet gas; - No carbon dioxide was recorded by mud gas detection systems while drilling; - Primary porosity generally ranging between 5% and 10%; - A number of prominent fracture systems appear to be present in the sandstone units (corresponding to lost circulation zones), which would be expected to enhance permeability and produce-ability of any gas. While the prognosed gas-water-contact (GWC) and mapped structural spill point(4260m) has not yet been reached in Heron-2, the Company is conducting abarefoot production test of the Plover formation to determine indicative gasquality and reservoir productivity, thereby confirming that a recoverableresource is present. Testing of this zone is expected to be undertaken in theweek commencing December 31, 2007. 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 AustraliaMEO 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 EnergyElko 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 EnergyWasabi 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 InterestsXtract'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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