Xtract Regulatory News (XTR)

3 Jun 2008 08:54



3 June 2008   AIM: XTR

XTRACT ENERGY PLC

Investment update - MEO Australia

Xtract Energy plc ("Xtract" or the "Company") announces that it has sold (through its wholly-owned subsidiary Xtract International Limited) 5 million shares in MEO Australia Limited ("MEO") for total proceeds of approximately £1.1 million in cash.

Following this disposal Xtract retains 59,147,814 shares in MEO, representing approximately 14.6% of MEO's issued share capital.

Commenting on the disposal, Andy Morrison, Chief Executive of Xtract, said:

"The profitable sale of these shares reverses the acquisitions made during April this year however we remain strongly supportive of MEO and are a significant shareholder in the company. The sale proceeds will be applied to offer development support to other Xtract investee companies and our oil shale technology programme."

Enquiries please contact:

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

About Xtract Energy

Xtract identifies and invests in a diversified portfolio of early stage energy sector technologies and businesses with very 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.

Xtract is supported by its cornerstone investor, Cambrian Mining Plc (AIM:CBM) a diversified resource investment house which together with its wholly owned subsidiary Cambrian Investments Holdings Limited holds approximately 50.1% of the issued share capital of the Company.

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

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% interest) and a 3 Mtpa LNG plant (100% interest) which are adjacent to the Evans Shoal gas field.

MEO's consolidated net assets as at 31 December 2007 were approximately A$155.4 million (unaudited).  MEO made a consolidated net loss of approximately A$3.4 million for the year ended 30 June 2007.

Elko Energy

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 Energy

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.

Oil Shale

Xtract has oil shale and related petroleum product exploration rights over mining tenements in the Julia Creek area of Queensland and was 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).