10th Jan 2008 10:11
Xtract Energy plc10 January 2008 10 January 2008 AIM: XTR XTRACT ENERGY PLC ("Xtract" or the "Company") INVESTMENT UPDATE - OIL SHALE Xtract Energy Plc ('Xtract') is pleased to provide an update to investors on itsprogramme to develop and exploit the significant oil shale resources of itswholly owned Australian subsidiary, Xtract Oil Ltd. Xtract's proprietary oil shale technology is directed towards improving economicand environmental performance compared with 'traditional' technologies. Recent milestones that have been reached include: •A supplementary drilling programme was completed in Julia Creek, the Queensland Australia concession area, in 2007. A review of the new data in conjunction with existing data has been carried out by independent geologists Nolan and Associates Pty Ltd. The total indicated and inferred resources have been assessed as 2.12 billion barrels of oil in situ*, comprising 240 million barrels of indicated resources and 1,875 million barrels of inferred resources. •The revised resource statement represents an increase of over 150% compared with the previously declared figure of 825 million barrels. •Advanced autoclave equipment designed to scale up the batch size for testing and development of Xtract's proprietary technology was commissioned on Monash University campus in November 2007. Samples of the resulting liquid hydrocarbons for distillation curve analysis are now with analytical laboratories. •Based upon the technology and resource developments and product material supplied, Worley Parsons, a leading Australian-based international project services supplier, will shortly begin expert work to evaluate the technical and commercial feasibility of the project. Xtract has commenced the design of a small scale continuous reactor and,following further testing and the completion of the feasibility study, it isintended to file a provisional patent application for the process. Earlyindications are that Xtract's proprietary technology could double the yield ofliquid hydrocarbons from oil shale and achieve superior environmentalperformance compared with the traditional retorting methods**. If successful, the technology could unlock oil shale resources beyond Australia.In addition to ultimately seeking licence opportunities, Xtract is active inseeking out additional oil shale resources with a current focus on North Africa.Further announcements will follow as appropriate. The mining and production of refinery feed-stock crude oil represents apotentially significant and valuable source of hydrocarbon to help satisfyfuture international energy demands. Oil prices are expected to continue toprovide good support to project economics. *Based on the internationally recognised Australasian Code for Reporting ofExploration Results, Mineral Resources and Ore Reserves (The JORC Code - 2004Edition.) **Compared with the traditional retorting methods assumed for JORC calculationsabove. ABOUT OIL SHALE Oil shale is an organic-rich sedimentary rock, which is different from tarsands. In oil shale the contained kerogen has not yet been naturally transformedinto petroleum by heat and pressure. Oil shales vary considerably in theirmineral content, chemical composition, age, type of kerogen, and depositionalhistory, and are derived from a number of different organisms. The oil shale at Julia Creek (Queensland, Australia) is a 40-50 million year oldsedimentary rock. Xtract's licence area is a portion of an extensive area, whichwas explored for oil shale and vanadium by CSR Limited (CSR) and others between1968 and 1988. Exploration areas were held and explored by Esso Exploration andShell Limited, as well as by CSR and their co-venturers. By 1979-1980, CSR haddelineated the area most likely to provide economically exploitable oil shalereserves and appraised the resources within three possible open-cut mines. Morerecently, CRA Exploration Limited re-assessed much of the area of resourcesdelineated by CSR, prior to relinquishing their Exploration Permits in the early1990's. The oil shale industry has been in existence around the world for over a hundredyears. Oil shale industries are active in China, Estonia and Brazil. However,the traditional technologies that have been employed have been expensive andrelatively inefficient. The decline of low cost oil resources and the risingworld demand for oil have re-awakened interest in oil shale and the developmentof new extraction technologies that address previous concerns. Xtract together with Monash University and the Commonwealth Scientific andIndustrial Research Organisation of Australia (CSIRO) is undertaking anexperimental programme to develop improved extraction techniques usingrepresentative oil shale samples. Both Monash and CSIRO have the demonstratedcapability to work on a project of this type and have an extensive track recordof industry participation and in oil shale related research. The information in this announcement has been reviewed by Dr John E. Shirley,Managing Director of Xtract Oil Ltd, who has a BSc and PhD in Geophysics fromthe University of Tasmania, over 40 years experience in the resources and energysector and is a member of the Society of Petroleum Engineers. 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 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 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:
Xtract