Elko shareholder update

RNS Number : 3075M

Xtract Energy plc

12 August 2011

 



XTRACT ENERGY PLC

("Xtract" or the "Company")

Elko Shareholder Update

Xtract Energy Plc ("Xtract") notes below the Shareholder Update which was issued by Elko Energy Inc. ("Elko") to its shareholders on Thursday 11 August 2011.

Shareholder Update

Elko Energy Inc. ("Elko" or the "Corporation") is pleased to provide an update on the Annual and Special Meeting of Shareholders that was held Wednesday, August 3^rd in Toronto.  All resolutions put forward to shareholders were passed with a significant majority as follows:

Item 1:             Election of Directors - The five nominees set forth in the Corporation's Management Information Circular dated July 7, 2011 were elected as directors of the Corporation by a majority vote on a show of hands.

                        Votes For                      71,588,660

                        Votes Withheld              6,504,000

Item 2: Appointment of Auditors - Deloitte LLP was appointed as the auditor of the Corporation and the directors were authorized to fix the remuneration of the auditor by a majority vote on a show of hands.

                        Votes For                      74,092,660

                        Votes Withheld              4,000,000

Item 3: Approval of Plan of Arrangement involving Elko, Xtract Energy plc ("Xtract") and Xtract International Limited - The special resolution approving the Plan of Arrangement was approved by a vote conducted by ballot.

                        Majority of Disinterested Vote

                        Votes For                      24,138,660

                        Votes Against                4,004,000

                        Not Eligible to Vote        49,975,000

                        66 2/3 Vote

                        Votes For                      74,113,660

                        Votes Against                4,004,000

In addition, yesterday, the Ontario Superior Court of Justice provided its final approval of the Plan of Arrangement. The next steps in this transaction include the successful completion by Xtract of its re-admission to AIM and the approval of the Plan of Arrangement by Xtract's shareholders.   

Xtract is currently in the process of finalizing its re-admission documentation to AIM.  A specific date for an Xtract shareholders meeting to approve Xtract's re-admission to AIM has not been set at this time, however it is currently anticipated that this meeting will be called for the early part of September.

Once all of the conditions to closing the Plan of Arrangement have been waived or satisfied, Articles of Arrangement will be filed with the applicable Ontario Ministry to give effect to the Plan of Arrangement, following which time Equity Financial Trust Company, Elko's transfer agent and registrar, will be in a position to facilitate the issuance of Xtract shares to those shareholders who have submitted the Letter of Transmittal and their certificates representing Elko shares. 

Peter Moir

President

August 11, 2011

Enquiries please contact:

Xtract Energy Plc	Peter Moir, CEO Alan Hume FD	[phone] [phone]
Cenkos Securities Plc	Jon Fitzpatrick Alan Stewart	[phone] [phone]
Financial Dynamics	Billy Clegg Edward Westropp Alex Beagley	[phone]

About Xtract

Xtract identifies and invests in a portfolio of early stage oil and gas assets and business interests with significant growth potential. The Company aims to work closely with the associated management teams to achieve critical project milestones, to finance early stage asset and business development activity, and then to finance the asset development phase, or if appropriate to crystallise value for all shareholders at a suitable exit point. Xtract aims to achieve returns for our shareholders through access to the significant upside rewards associated with our investments.

As announced on 21 June 2011, Xtract has offered to acquire all of the issued and outstanding common stock in Elko Energy Inc that it does not already own, for new ordinary shares in Xtract. Subsequently, Xtract sought a suspension of trading in its shares until it is in a position to publish an Admission Document and, thereafter, it will re-apply for admission to AIM. Accordingly, at the request of the Company, trading on AIM for the under-mentioned securities was suspended from 7:30am on 21 June 2011.

For further information on Xtract please visit www.xtractenergy.co.uk

A short description of the principal assets of Xtract is set out below. These assets are either held directly or through wholly owned subsidiaries of the Company.

Extrem Energy AS ("Extrem Energy")

Following execution of heads of terms it is anticipated that in the near term Xtract will enter into a fully termed Assignment Agreement and associated Royalty Agreement pursuant to which Xtract will hold a royalty interest over the license portfolio currently owned by Extrem Energy, onshore and offshore Turkey.

Elko Energy Inc. ("Elko")

Elko is a Canadian registered oil & gas exploration company which has interests in exploration and production licences in the Danish and Dutch North Sea. Its major asset in the Danish North Sea is a 33% working interest in an exploration and production licence 02/05 and a 33% working interest in an adjoining exploration and production licence 01/11, east of the prolific Central Graben oil kitchen. Technical work indicates the potential for significant resources on these combined licenses. Neither of those licences is currently being produced and accordingly no profits are attributable to them. Elko also holds a royalty interest in gas-bearing license blocks P1 and P2 in the Dutch North Sea. Xtract currently owns approximately 50% of Elko's issued share capital.

As announced on 21 June 2011, Xtract has offered to acquire all of the issued and outstanding common stock in Elko Energy Inc that it does not already own, for new ordinary shares in Xtract. Subsequently, Xtract sought a suspension of trading in its shares until it is in a position to publish an Admission Document and, thereafter, it will re-apply for admission to AIM.

Zhibek Resources Ltd ("Zhibek Resources")

Zhibek Resources is an oil and gas exploration and production company which has a 72% interest in the Tash Kumyr exploration licence in the Kyrgyz Republic. Xtract has entered a farm-out agreement to fund a seismic and drilling programme for 2008-2011. Xtract owns 25.0% of the issued share capital of Zhibek Resources.

Xtract Oil Ltd ("XOL")

Xtract's wholly owned subsidiary, XOL, is focused on the development of the Company's oil shale resources in Australia and the technology for oil extraction from oil shale resources. Xtract has oil shale exploration rights over mining tenements in the Julia Creek area of Queensland. In addition to evaluating third party technologies, XOL has been developing proprietary technology for the commercial extraction of liquid hydrocarbon products from oil shale.

Xtract Energy (Oil Shale) Morocco SA ("XOSM")

XOSM is a joint venture with Alraed Limited Investment Holding Company WLL, a company controlled by His Highness, Prince Bandar Bin Mohd. Bin Abdulrahman Al-Saud of Saudi Arabia. XOSM has signed a Memorandum of Understanding with the Office National des Hydrocarbures et des Mines for the purposes of evaluation and possible development of an oil shale deposit near Tarfaya, in the south west part of Morocco. Xtract currently holds 70% of the joint venture.

 

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