Investment Update
27 January 2009
AIM: XTR
XTRACT ENERGY PLC
("Xtract" or the "Company")
PROJECT UPDATE - MEO Australia Limited
Xtract announces that it has sold 2,400,000 of its shares in MEO
Australia Limited ("MEO") for a consideration of A$816,240. The
proceeds of the sale will be used to support the growth of the other
investments within the Company's portfolio. Following the sale,
Xtract holds 56,747,814 shares in MEO, representing approximately
13.6% of MEO's issued share capital.
Xtract also refers shareholders to the following announcement
released today in Australia by MEO.
"ASX AND MEDIA RELEASE
Zeus-1 update
Key Points:
* 13-3/8" surface casing set at 1,874m
* Preparing to re-man rig following passing of Tropical
Cyclone Dominic
MELBOURNE, AUSTRALIA (January 27th, 2009) - MEO Australia Limited
(ASX: MEO) is pleased to advise the following update in relation to
Zeus-1 (MEO 35%, Operator), being drilled in WA-361-P in the
Carnarvon Basin, offshore Western Australia.
Progress to 0600 hrs WSDST
Since the last report, the 17-1/2" hole was drilled to 1,886m and the
13-3/8" surface casing was run and cemented to 1,874m. Landed and
latched Blow Out Preventer (BOP) on wellhead.
On 25th January, the rig was secured and skidded off location to ride
out the storm subsequently named Tropical Cyclone Dominic.
At 0640 this morning TC was approaching the WA coast just east of
Onslow. It remains a category 2 system however is expected to weaken
rapidly. Under this scenario, MEO expects to commence re-manning the
Songa Venus later today.
Present operation (0600hrs WSDST)
Preparing to re-man drilling rig following passing of Tropical
Cyclone (TC) Dominic.
Objectives of Zeus-1
Zeus-1 is targeting potential gas-in-place of 15 Tcf in the primary
Legendre sands target and 3.7 Tcf potential gas-in-place in the
secondary Forestier sands target.
Zeus-1 & WA-361-P participants
+-------------------------------------------------------------------+
| Company | Equity | Remarks |
|---------------------------------------+--------+------------------|
| North West Shelf Exploration Pty Ltd | 35% | Operator |
| (Wholly owned subsidiary of MEO | | ASX: MEO |
| Australia Limited) | | |
|---------------------------------------+--------+------------------|
| Resource Development International | 35% | (Unlisted public |
| Limited | | company) |
|---------------------------------------+--------+------------------|
| Cue Energy Resources Limited | 15% | ASX: CUE |
|---------------------------------------+--------+------------------|
| Gascorp Australia Pty Ltd | 15% | (Unlisted public |
| | | company) |
+-------------------------------------------------------------------+
Jurgen Hendrich
Managing Director & CEO
Attachment 2:
Zeus-1 Well Details
DETAILS
Licence: WA-361-P
Operator: MEO Australia Limited
Rig: Songa Venus
Surface location: Latitude: 19 deg 30 min 17.67 sec
Longitude: 115 deg 50 min 6.63 sec
Ellipsoid: GDA94, GRS80
Seawater Depth: 212.4 m
Spud Date: 17th January 2009
Target Strata: Primary: Legendre Formation
Secondary: Forestier Formation
Total Depth: 3655 metres (MDRT). Actual TD: 3630m
(MD - measured depth below the rig's rotary
table - RT)
Primary Target Depth: Top Legendre Fm 3455 metres (MDRT)
Secondary Target Depth: Top Forestier Fm 3253 metres (MDRT)
Designated Authority: W.A. Department of Industry and Resources
Reservoir Objectives: Legendre Formation:
Zeus is an analogue to the adjacent Perseus
gas field. Determine the validity of the
amplitude and AVO responses observed on the
Rosie 3D seismic data. Positive amplitude and
AVO responses are seen at multiple levels
within the Legendre. In addition, determine
if there are sands which are gas bearing that
do not exhibit an AVO response.
Forestier Formation:
Determine the validity of the amplitude and
AVO responses observed in the basal
Forestier. This section has not been
penetrated in nearby wells and could contain
sands equivalent to the Barrow Group.
MEO Pre-drill Gas-In-Place Estimates
+----------------------------------------------+
| Target Reservoir | Gas-in-Place Estimates |
|---------------------+------------------------|
| Legendre Formation | 15.0 Tcf |
|---------------------+------------------------|
| Forestier Formation | 3.7 Tcf |
+----------------------------------------------+
Production Ojectives: In a success case, hydrocarbon samples will be
collected by MDT, no cased-hole tests are
planned.
Well Design: Zeus-1 is a vertical well. The well design is
to drill a 36" hole to the 295mRT and set a
30x20" conductor. A 13-3/8" casing string will
be set in a 17-1/2" hole drilled to 1910mRT.
Drill a 12-1/4" vertical hole to TD and log.
There is provision for a contingent 9-5/8"
casing at 3225mRT."
A copy of the MEO announcement referred to above containing a map and
attachment 1 with additional information, is available on the
Australian Stock Exchange website: www.asx.com.au
Further information on MEO can be found at www.meoaustralia.com.au.
As an unquoted company, MEO is not subject to the AIM Rules and the
information contained in this announcement 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 Andy Morrison, CEO +44 (0)20 7079 1798
Smith & Williamson David Jones +44 (0)20 7131 4000
Corporate Finance Azhic Basirov
Scott Harris Ian Middleton +44 (0)20 7653 0030
James O'Shaughnessy
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.
MEO Australia Ltd ("MEO")
MEO (ASX: MEO) aims to become an integrated Australian Gas-to-Liquids
("GTL") company. In 2008, MEO made significant gas discoveries in the
Australian Timor Sea, in an area of shallow water known as Tassie
Shoal. Early commercialisation of these discoveries is planned
through construction of Liquified Natural Gas ("LNG") and Methanol
plants and export terminals on the off-shore Tassie Shoal. MEO has
already secured Australian Government environmental approvals for two
large scale (1.8 Mtpa) methanol plants and a 3 Mtpa LNG plant on
Tassie Shoal. Xtract owns approximately 13.6% of MEO's issued share
capital. For the year ended 30 June 2008, MEO made a loss of
approximately A$1.9 million and as at that date it's net asset value
was approximately A$153.9 million.
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 33% operating interest in gas-bearing license blocks P1
and P2 in the Dutch North Sea. Xtract owns approximately 35.4% of
Elko's issued share capital.
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
20% of the issued share capital of Extrem Energy and has the option
of increasing its shareholding to 34% before 30 June 2009.
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.
Wasabi Energy Ltd ("Wasabi")
Wasabi (ASX: WAS) is a diversified investor in traditional and
renewable energy technologies. Amongst its listed assets it holds
approximately 38% of Rum Jungle Uranium Ltd (ASX: RUM) which has
interests in uranium exploration licenses covering some 4,150 sq km
of Australia's Northern Territory and approximately 12.5% of
Greenearth Energy Ltd (ASX:GER) which aims to explore and develop
geothermal resources in Australia and the wider Pacific Rim. Xtract
owns approximately 19.4% of the issued share capital of Wasabi.
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 and Pishkoran exploration
licences 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.
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This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.