Xtract Energy plc
04 January 2008
4 January 2008 AIM: XTR
XTRACT ENERGY PLC
('Xtract' or the 'Company')
PROJECT UPDATE - MEO Australia Ltd
Xtract refers shareholders to the following press release information announced
in Australia by MEO Australia Ltd ('MEO').
Xtract currently holds approximately 15.7% of the issued capital of MEO.
HERON-2 WELL UPDATE
MELBOURNE, AUSTRALIA (January 4, 2008) - MEO Australia Limited (ASX: MEO)
advises the market that the Heron-2 well has commenced flowing from the gas
charged zone of the Heron North Elang/Plover formation. The well flowed gas to
surface and is currently undergoing a prolonged clean-up period to clear the
drilling fluids from the wellbore and formation.
While drilling the formation, the well experienced significant losses of
synthetic based mud (1180 bbls). The formation in proximity to the wellbore was
further impaired by the subsequent LCM (loss circulation material) treatment,
which effectively inhibited much of the formation's permeability. The clean-up
is required to sample gas and obtain gas flow data in order to make the best
estimate of reservoir potential given the possible impact to the formation from
the drilling fluids.
The well was shut-in today at apprxoimately 2.30 pm (EST) as the tropical low
pressure system located in the Joseph Bonaparte Gulf formed into a category 1
cyclone (Cyclone Helen). The cyclone is within the 500 km radius of the rig,
which necessitates the mandatory securing of the rig prior to de-manning.
The cyclone is forecast to move eastward over the weekend across the Northern
Territory south of Darwin and is expected to weaken to a tropical low. The rig
will re-commence operations upon this reclassification and proceed with the
production testing of Heron North.
MEO Australia has entered into a trading halt commencing 10 am today due to
these uncertainties. A detailed release will be made before trading recommences
at 10 am on January 8, 2008 to allow a more extensive disclosure of the Heron-2
Further information on MEO can be found at www.meoaustralia.com.au. As an ASX
listed company, MEO is not subject to the AIM Rules and this drilling update has
not been reviewed by a named 'qualified person' as defined and required by the
AIM 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
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 energy
sector technologies and businesses with very significant growth potential. We
aim 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.
Xtract is supported by its cornerstone investor, Cambrian Mining Plc (AIM:CBM) a
diversified resource investment house which holds approximately 50.3% of issued
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
MEO is focused on developing gas-to-liquids ('GTL') projects in the Timor Sea
Australia, in an area of shallow water known as Tassie Shoal. It has secured
Commonwealth 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 is an oil & gas exploration company which has an interest in a 5,370km2
exploration and production licence in the Danish North Sea and an investment in
Dragon Energy Inc, a private Canadian company, with a development project in
Gansu Province, China.
Wasabi is a diversified investor in renewable energy and low greenhouse emission
technologies, with interests in geothermal waste/heat, uranium exploration in
Australia's Northern Territory and biodiesel investments in Victoria.
Central Asian Interests
Xtract's Central Asian interests include a production sharing agreement with
Kyrgyzneftegaz to instigate a water injection project on the Beshkent- Togap oil
field. Xtract also holds interests in several exploration licences in the Tash
Kumyr area and in the Toktogul exploration licence.
Xtract has oil shale and related petroleum product exploration rights over
mining tenements in the Julia Creek area of Queensland and has recently been
granted an exploration permit which gives rights to explore for oil shale in an
area in the South of New Zealand. It is investigating the commercial production
of hydrocarbons (crude oil) from oil shale.
Xtract is also available for trading on the open market segment of the Frankfurt
Stock Exchange (ticker R9X.FSE).
This information is provided by RNS
The company news service from the London Stock Exchange