Xtract Regulatory News (XTR)

4 Jan 2008 14:37

Xtract Energy plc04 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 announcedin Australia by MEO Australia Ltd ("MEO"). Xtract currently holds approximately 15.7% of the issued capital of MEO. "ASX RELEASE 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 gascharged zone of the Heron North Elang/Plover formation. The well flowed gas tosurface and is currently undergoing a prolonged clean-up period to clear thedrilling fluids from the wellbore and formation. While drilling the formation, the well experienced significant losses ofsynthetic based mud (1180 bbls). The formation in proximity to the wellbore wasfurther impaired by the subsequent LCM (loss circulation material) treatment,which effectively inhibited much of the formation's permeability. The clean-upis required to sample gas and obtain gas flow data in order to make the bestestimate of reservoir potential given the possible impact to the formation fromthe drilling fluids. The well was shut-in today at apprxoimately 2.30 pm (EST) as the tropical lowpressure system located in the Joseph Bonaparte Gulf formed into a category 1cyclone (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 NorthernTerritory south of Darwin and is expected to weaken to a tropical low. The rigwill re-commence operations upon this reclassification and proceed with theproduction testing of Heron North. MEO Australia has entered into a trading halt commencing 10 am today due tothese uncertainties. A detailed release will be made before trading recommencesat 10 am on January 8, 2008 to allow a more extensive disclosure of the Heron-2well activities." Further information on MEO can be found at www.meoaustralia.com.au. As an ASXlisted company, MEO is not subject to the AIM Rules and this drilling update hasnot been reviewed by a named "qualified person" as defined and required by theAIM 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 4000Finance Limited 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 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 approximately 50.3% of issuedshare capital. A short description of the principal assets of Xtract is set out below. Theseassets are either held directly or through wholly owned subsidiaries of theCompany. MEO Australia MEO is focused on developing gas-to-liquids ("GTL") projects in the Timor SeaAustralia, in an area of shallow water known as Tassie Shoal. It has securedCommonwealth 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 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 overmining tenements in the Julia Creek area of Queensland and has recently beengranted an exploration permit which gives rights to explore for oil shale in anarea in the South of New Zealand. It is investigating the commercial productionof 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