Xtract Regulatory News (XTR)

30 Nov 2007 16:09

Xtract Energy plc30 November 2007 30 November 2007 AIM: XTR XTRACT ENERGY PLC ("Xtract" or the "Company") PROJECT UPDATE - MEO Australia Ltd Xtract is pleased to refer shareholders to the following press releaseinformation announced in Australia by MEO Australia Ltd ("MEO") this week. Xtract currently holds approximately 21.3% of the issued capital of MEO. Key points relating to announcements made on 27 and 30 November 2007: • West Atlas rig successfully completed the running of three planned log suites from the section depth (3360m), through the Epenarra Darwin Formation earlier this week • Samples targeted the Darwin Formation facies C zone which was interpreted to be gas-bearing in Heron-1. Preliminary analysis of the log suites acquired in Heron-2 also indicates Facies C to be gas bearing • Until the hydrocarbons are recovered and analysed, MEO is unable to confirm gas quality or that a recoverable resource is present in Epenarra. • 9 5/8 inch casing has now been run to 3360m section depth and cementing completed • Currently preparing to drill 8 1/2 inch hole to the Heron North Elang/ Plover Formation • Production testing of Epenarra can only be undertaken after the drilling (and if warranted flow testing) of the underlying Heron North structure. Text of announcement made on 30 November 2007: "MELBOURNE, AUSTRALIA (November 30, 2007) -- MEO Australia Limited (ASX: MEO)submits this drilling report for the period ending 1000 hours, November 30,2007. TheHeron-2 well was spudded at 2230 hours (ACST) on October 12, 2007 inExploration Permit, NT/P68. The rig has drilled the 12 1/4 inch hole to a section depth of 3360m and the9 5/8 inch casing has been successfully landed and cemented. The rig iscurrently testing the BOP stack for the high pressure high temperature operationto the planned total depth of the well and is making up the estimated volumesand density of synthetic (SBM) mud to undertake the final stages of the drillingoperation. MEO expects to commence drilling the 8 1/2 inch hole over thisweekend. The prognosed depth of the Top Elang/Plover Formation at the HeronNorth structure is approximately 3900m. The participants in the well are: TSP Arafura Petroleum Pty Ltd (MEO subsidiary) 45%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 avertical well to penetrate and production test the Epenarra Darwin Formation andthe deeper Elang/Plover Formation of the Heron North structure. The plannedtotal 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 secondaryobjective for the Heron-2 well." 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 50.41% 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 AustraliaMEO 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 EnergyElko 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 EnergyWasabi 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 InterestsXtract'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 ShaleXtract 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