Placing

RNS Number : 3713E
Xtract Energy plc
18 December 2009
 



18 December 2009


AIM: XTR


XTRACT ENERGY PLC

("Xtract" or the "Company")


Placing


Xtract is pleased to announce that it has placed 60 million new ordinary shares of 0.1 pence each (the "Placing Shares") at a placing price of pence per ordinary share, raising £1.2 million before expenses (the "Placing").  Placees will receive warrants (the "Warrants") to subscribe for one new ordinary share for each Placing Share received under the Placing at a subscription price of 2.5 pence per ordinary share.  The net proceeds of the Placing will be used for working capital purposes.  Application has been made for the Placing Shares to be admitted to AIM and trading in the Placing Shares is expected to commence on 21 December 2009.  The Warrants, which will expire 18 months after admission of the Placing Shares, will not be admitted to trading on AIM.  Following the issue of the Placing Shares there will be 811,765,026 Xtract ordinary shares in issue.



Enquiries please contact:


Xtract Energy

Andy Morrison, CEO

+44 (0)20 3205 1148


Smith & Williamson

Corporate Finance

David Jones

Azhic Basirov

Barrie Newton


+44 (0)20 7131 4000


About Xtract Energy


Xtract identifies and invests in a diversified portfolio of early stage energy sector technologies and businesses with significant growth potential. The Company aims to work closely with the associated management teams to achieve critical project milestones, to finance later development stages, and to build and crystallise value for all shareholders and partners.


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")


Extrem Energy is an exploration and production joint venture with Merty Energy of Turkey. The JV's aim is to create a new medium-sized oil and gas exploration and production business, initially focused on Turkey where Merty Energy has particular experience and expertise. Extrem Energy has a portfolio of licence interests including the high potential prospect at Candarli Bay in south-west Turkey. Xtract owns 34% of the issued share capital of Extrem Energy.


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 is in the Danish North Sea; an 80% interest on 26 offshore blocks in a 5,400 sq km exploration and production licence close to the prolific Central Graben oil field. Technical work indicates the potential for significant reserves. Elko also holds a 60% operating interest in gas-bearing license blocks P1 and P2 in the Dutch North Sea. Xtract owns approximately 36.8% of Elko's issued share capital.


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 2008-09. 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.




This information is provided by RNS
The company news service from the London Stock Exchange
 
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