Xtract Regulatory News (XTR)

19 Oct 2007 13:38

Xtract Energy plc19 October 2007 19 October 2007 AIM: XTR XTRACT ENERGY PLC ("Xtract" or the "Company") PROJECT UPDATE - MEO AUSTRALIA Xtract is pleased to refer shareholders to the following press release announcedin Australia today by MEO Australia Limited (MEO). Xtract currently holdsapproximately 21.3% of the issued capital of MEO. ASX AND MEDIA RELEASE HERON-2 WELL WEEKLY DRILLING REPORT Key Points: • Drilled 36 inch hole and 30 inch casing set to 108m • Final rig commissioning, testing and minor repairs completed • At 06.00 am commenced drilling the 26 inch hole MELBOURNE, AUSTRALIA (October 19, 2007) -- MEO Australia Limited (ASX: MEO)submits this drilling report for the period ending 0900 hours, October 19, 2007.The Heron-2 well was spudded at 2230 hours (ACST) on October 12, 2007 inExploration Permit, NT/P68. As a new rig, MEO allowed for an approximate 5 day period for final rigcommissioning, equipment testing and minor repairs to ensure all critical equipment was fully operational prior to drilling out of the 30 inch conductor. At 6 am this morning, the rig commenced drilling the 26 inch hole. The participants in the well are: TSP Arafura Petroleum Pty Ltd 45%(MEO subsidiary) Oz-Exoil Pty Ltd (MEO subsidiary) 45% Petrofac Energy Developments Oceania Ltd (Petrofac Limited subsidiary) 10% Heron-2 is being drilled by Seadrill's West Atlas jack-up rig contracted to MEOfor two firm wells and one option well. The Heron-2 well is designed as a vertical well to penetrate and production testthe Epenarra Darwin Formation and the deeper Elang/Plover Formation of the Heron North structure. The planned total depth of the well is approximately 4300m below sea level. The Heron-1 well drilled by ARCO in 1972 intersected a 52m gas bearing column inthe Darwin Formation (a fractured carbonate reservoir) within the 1,200 squarekm mapped closure of the large Epenarra structure. Heron-1 also reached a gascharged zone in the deeper underlying Elang/Plover horizon, which is a secondary objective for the Heron-2 well. Further information on MEO can be found at www.meoaustralia.com.au Enquiries please contact: Xtract Energy plc Andy Morrison, CEO +44 (0) 20 7079 1798 Smith & Williamson CorporateFinance Limited David Jones +44 (0) 20 7131 4000 Azhic Basirov Scott Harris Stephen Scott +44 (0) 20 7653 0030 Annabel Michie For further Information on Xtract please visit www.xtractenergy.co.uk About MEO The MEO business plan is centred on the development of gas-to-liquids (GTL)projects in the Australian waters of the Timor Sea, approximately 275 kmnorthwest of Darwin, in an area known as Tassie Shoal. The company has securedAustralian Commonwealth Government environmental approvals for two large-scalemethanol plants (1.8 mtpa) and an LNG plant (3 mtpa) that are valid until 2052. Tassie Shoal is an area of shallow water adjacent to the Evans Shoal gas fieldand is located around 25km east of MEO's exploration permit, NT/P68. MEO mappinghas identified five large structures in NT/P68 two of which were intersected bythe Heron-1 well drilled in 1972, confirming gas columns. The resourcescontained in NT/P68 provides significant valuation upside by potentiallyproviding a feedstock for the GTL projects as an alternative to possible thirdparty gas supply from nearby resources. About Xtract Energy Plc Xtract identifies and invests in a diversified portfolio of early stage energysector technologies and businesses with very significant growth potential. Weaim to work closely with the associated management teams to achieve criticalproject milestones, to finance later development stages and to build andcrystallise value for all shareholders and partners. Xtract is supported by its cornerstone investor, Cambrian Mining Plc (AIM:CBM) adiversified resource investment house which holds 51.6% of its issued sharecapital. A short description of the principal assets of Xtract other than MEO is set outbelow. These assets are either held directly or through wholly ownedsubsidiaries of the Company. Elko Energy Elko is an oil & gas exploration company which has an interest in a 5,370km2exploration and production licence in the Danish North Sea and an investment inDragon Energy Inc, a private Canadian company, with a development project inGansu Province, China. Wasabi Energy Wasabi is a diversified investor in renewable energy and low greenhouse emissiontechnologies, with interests in geothermal waste/heat, uranium exploration inAustralia's Northern Territory and biodiesel investments in Victoria. Central Asian Interests Xtract's Central Asian interests include a production sharing agreement withKyrgyzneftegaz to instigate a water injection project on the Beshkent- Togap oilfield. Xtract also holds interests in several exploration licences in the TashKumyr 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 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 FrankfurtStock Exchange (ticker R9X.FSE). This information is provided by RNS The company news service from the London Stock Exchange