Xtract Regulatory News (XTR)

13 Dec 2007 16:10

Xtract Energy plc13 December 2007 13 December 2007 AIM: XTR XTRACT ENERGY PLC ("Xtract" or the "Company") MEO Australia Ltd The Company's wholly owned subsidiary Xtract International Ltd (formerlyCambrian Oil & Gas Plc) ("Xtract International") has sold 10 million shares inMEO Australia Ltd ("MEO") at A$1.25 per share in cash. The proceeds of this sale will provide Xtract with working capital and with theopportunity to offer development support to other investee companies within itsportfolio. Further investment updates will be provided by the Company as andwhen they may become appropriate. Following this disposal Xtract (through Xtract International) retains 60,656,814shares in MEO, representing approximately 15.7% of MEO's issued share capitalfollowing MEO's recent placing. Commenting on the disposal, Andy Morrison, Chief Executive Xtract Energy plc,said 'We are very pleased to note the positive news coming from MEO's drillingprogramme in the Timor Sea. Xtract is now able to take advantage of this successto accelerate other businesses within the Company's investment portfolio,including the development of our proprietary oil shale technology and resourceholdings. Notwithstanding this recent sale, we remain strong supporters of MEOand expect to remain a significant shareholder as it moves into futuredevelopment phases'. Enquiries please contact: Xtract Energy plc Andy Morrison, CEO +44 (0) 20 7079 1798 Smith & Williamson Corporation David Jones Finance Ltd Azhic Basirov +44 (0) 20 7131 4000 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 provide significant valuation upside by potentiallyproviding a feedstock for the GTL projects as an alternative to possible thirdparty gas supply from nearby resources. MEO's consolidated net assets as at 30 June 2007 were approximately A$85million.MEO made a consolidated net loss of approximately A$3.4 million for the yearended 30 June 2007. 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. 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 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