4th Jun 2007 13:39
Xtract Energy plc04 June 2007 Xtract Energy plc MEO announcement 4 June 2007 Set out below is the text of an announcement released today by MEO AustraliaLimited, which is quoted on ASX. Xtract Energy plc owns approximately 28 percent of MEO Australia's issued share capital (before the share placementreferred to in the announcement). "FARMIN BY PETROFAC RESOURCES AND PLACEMENT Key points •Petrofac Resources farms into NT/P68 for a 10% interest by funding 25% of well costs •Placement to institutional investors completed raising A$41.25 million •Share Purchase Plan for shareholders as at Record Date June 13, 2007 MELBOURNE, AUSTRALIA (June 4, 2007) - MEO Australia Limited (ASX: MEO) ispleased to announce that Petrofac Resources Limited has farmed into theCompany's Exploration Permit, NT/P68. Petrofac will meet 25% of the well costsassociated with the 2007 appraisal drilling program to earn a 10% interest andhas an option to increase this farm-in interest to 15% by funding 37.5% of thewell costs. MEO decided late in 2006 to offer up to 30% of NT/P68 for farm-in by strategicpartners that offered strong operational and relevant technical expertise.Additionally the farminee would need to demonstrate alignment to MEO'sobjectives to ensure the rapid commercialization of hydrocarbons confirmed bythe 2007 drilling program and the approved gas-to-liquid (GTL) projects. Petrofac has also been granted an option to participate in the proposed TassiShoal LNG and methanol projects at the same equity participation level as thefarm-in. Petrofac's participating interest in the methanol project would reduceAir Product's 50% interest (MEO will retain its current 50% interest).Petrofac's participating interest in the LNG project would reduce MEO's current100% interest. Petrofac would earn its interests in the GTL projects bycontributing to the initial front end engineering and design (FEED) costs andpaying a NPI royalty to MEO from the Petrofac share of the project's eventualoperating profits. Petrofac brings strong engineering, procurement, construction and operationalexpertise to the NT/P68 joint venture through their EPC and facility managementdivisions. Petrofac also provides an experienced sub-surface team with specificskills in hydrocarbon production from fractured carbonates similar to theEpenarra reservoir, and will second key personnel into the MEO team to helpmanage the 2007 drilling program. Following the completion of the 2007 drillingcampaign, Petrofac will assume the role of permit operator to manage thesubsequent full appraisal of any resources confirmed in the permit and wouldoperate the eventual upstream hydrocarbon production facilities. MEO continues to field strong interest from highly credentialed industry playerseager to join Petrofac and participate in MEO's projects. MEO expects to resolvethe farm-out for the balance of the 30% interest over the coming weeks. However,MEO believed it prudent to raise sufficient funds ahead of finalising otherfarm-in arrangements to ensure that it can meet its financial obligations forthe 2007 drilling program on a dry-hole cost basis. The Company is pleased to advise that during the trading halt, a placement of41.25 million shares at A$1.00 per share was made to Australian and Europeanprofessional and sophisticated investors. The placement was jointly managed bythe Company's Australian broker, Tolhurst Limited, and London broker, WHIreland. The offer was heavily over-subscribed. The Company has also decided to initiate a Share Purchase Plan (SPP). Australianand New Zealand Shareholders on MEO's register at the Record date of June 13,2007 can apply for up to 5000 shares at A$1.00 per share; the same terms as theplacement just completed. No brokerage fees will apply to the SPP shares. Eachshareholder will shortly be sent an application form and a copy of the Company'sHalf Year Report. The offer will open on June 15, 2007 and applications andpayment must be received by 5pm (EST) on July 6, 2007. The Company is now in a strong financial position and looks forward to workingwith Petrofac to achieve a successful outcome in the drilling campaign later inthe year. CR HartManaging DirectorJune 4, 2007 For further information contact Chris Hart: +61 3 9614 0430 or +61 418 399 401or [email protected] Pretrofac background: Petrofac is a leading international provider of facilities solutions to the oil& gas production and processing industry, with a diverse customer portfolioincluding many of the world's leading integrated, independent and national oil &gas companies. Petrofac is quoted on the London Stock Exchange (symbol: PFC) andis a constituent of the FTSE 250 Index. Through its three divisions, Engineering & Construction, Operations Services andResources, Petrofac designs and builds oil & gas facilities; operates, maintainsor manages facilities and trains personnel; and, where return criteria are metand service revenue synergies identified, co-invests with clients and partners.Petrofac's range of services allows it to help meet its customers' needs acrossthe life cycle of oil & gas assets. With over 9,000 employees, Petrofac operates out of four strategically locatedinternational centres, in Aberdeen, Sharjah, Woking and Mumbai and a further 16offices worldwide. The predominate focus of Petrofac's business is on the UKContinental Shelf (UKCS), Africa, the Middle East, the Commonwealth ofIndependent States (CIS) and the Asia Pacific region. For additionalinformation, please refer to the Petrofac website at www.petrofac.com" Enquiries in relation to Xtract please contact: Xtract Energy plc John Newton, CEO +44 (0) 20 7409 0890 Smith & WilliamsonCorporate Finance Ltd David Jones/ Azhic Basirov +44 (0) 20 7131 4000 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Xtract