8th Oct 2007 14:34
Xtract Energy plc08 October 2007 8 October 2007 AIM: XTR XTRACT ENERGY PLC ("Xtract" or the "Company") PROJECT UPDATE - MEO AUSTRALIA Xtract Energy Plc ("Xtract") is pleased to note the positive developmentstowards the commencement of the appraisal drilling programme by investee companyMEO Australia Limited ("MEO") in the Timor Sea off the northern coast ofAustralia. Xtract is the largest shareholder in MEO holding approximately 21.3%of the issued capital. On 5th October 2007 MEO advised the market that the Blue Marlin and West Atlasjack-up rig arrived at Darwin harbour on 4th October 2007. MEO expects to spudHeron-2 on or about 11th October 2007. The Northern Territory's Chief Minister Clare Martin commented that the arrivalof the West Atlas jack-up rig for MEO Australia's gas field appraisals showedthe growing confidence in the Northern Territory's future as a regional hub forenergy supply. She added that the Nothern Territory Government remains committedto supporting exploration companies such as MEO Australia in unlocking theNorthern Territory's enormous resource potential. Commenting on the positive developments, Xtract's CEO Andy Morrison said that,"Xtract Energy is delighted to see the final preparations for drilling takingplace and we look forward to further developments. MEO has been and remains acornerstone of our investment portfolio." 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 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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