12th Dec 2007 11:39
Xtract Energy plc12 December 2007 12 December 2007 AIM: XTR XTRACT ENERGY PLC ("Xtract" or the "Company") PROJECT UPDATE - MEO Australia Ltd Xtract is pleased to refer shareholders to the press release below announced inAustralia by MEO Australia Ltd ("MEO"). Xtract also notes that trading in MEO'sshares on the ASX has resumed following the publication of the announcementbelow. Following the placing referred to below, Xtract will hold approximately18.3% of the issued capital of MEO. "ASX AND MEDIA RELEASE PLACEMENT OF 50M SHARES MELBOURNE, AUSTRALIA (December 12, 2007) -- MEO Australia Limited (ASX: MEO) ispleased to advise that during the trading halt, a placement of 50 million sharesat A$1.25 per share was made to Australian, United Kingdom and Europeaninstitutional, professional and sophisticated investors raising A$62.5 million(before costs). The placement was jointly managed by the Company's Australianbroker, Tolhurst Limited, and London broker, WH Ireland Limited. The offer wasconducted within the 15% placing capacity and was heavily over-subscribed. Previous fund raising activities provided the Company with sufficient capital tomeet the dry hole costs of the two back-to-back appraisal wells in the currentdrilling campaign. Funds raised will be applied to the following plannedactivities: • Initiation of LNG and methanol project studies including site selection to secure a casting basin site in SE Asia for the potential construction of the methanol plant and LNG tank substructures, pre-FEED, finalization of Basis of Design documentation and Capex reviews of the projects; • Production testing of the gas bearing zones in the wells (refer ASX Releases December 5, 2007 and December 10, 2007); • Acquisition of approximately 800 sq km of new 3D seismic to extend the existing 500 sq km 3D seismic coverage over the whole of the Epenarra and Heron structures in NT/P68. Acquisition is planned for March 2008; • Acquisition of new 3D and 2D seismic in the recently acquired Northwest Shelf permits; • Contingency for drilling cost over-runs and general working capital. The rig is currently completing logging operations and is preparing to set the 7inch liner to isolate the over-pressured Flamingo Formation. MEO expects tocommence drilling the 6 inch hole in the week commencing December 17, 2007. The Company remains in a strong financial position and looks forward to asuccessful outcome in the current drilling campaign, further development of theTassie Shoal LNG and methanol projects, and exploration of the Northwest Shelfpermits." An investor presentation was also announced by MEO on the ASX. A copy of thepresentation can be found on MEO's website. 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 4000 Finance 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 critical project 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)a diversified resource investment house which holds approximately 50.41% ofissued share 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 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- Togapoil field. Xtract also holds interests in several exploration licences in the Tash Kumyr area and in the Toktogul exploration licence. Oil Shale Xtract 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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