Xtract Regulatory News (XTR)

6 Dec 2007 11:26

Xtract Energy plc06 December 2007 6 December 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"). Xtract currently holds approximately 21.3% of the issued capital of MEO. "HERON-2 WELL UPDATE JOINT VENTURE DECISION TO PRODUCTION TEST EPENARRA DARWIN RESERVOIR MELBOURNE, AUSTRALIA (December 5, 2007) -- MEO Australia Limited (ASX: MEO)advises the market that the NT/P68 Joint Venture partners have today approvedproduction testing of the gas charged zone of the Epenarra Darwin formationreservoir in the Heron-2 well. The participants in the Heron-2 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% The drilling update released on November 27, 2007 advised that the West Atlasrig had successfully acquired data from three planned log suites and recovered18 rotary side-wall core samples for detailed petrophysical analysis. Processingand analysis of this extensive data suite was required before the Joint Venturepartners were able to commit to the Epenarra production testing and approve thesubstantial additional investment. Results of the drilling, log and core sample interpretation of the Darwinformation indicate: • gas saturation recorded over entire 50 metres (3109m - 3159m) of facies C;• no carbon dioxide recorded by mud gas detection systems while drilling;• initial mud log indications while drilling suggest wet gas;• primary porosity in facies C ranging between 5% and 12%;• four major open fracture sets interpreted from Sonic Scanner;• multiple open secondary fractures noted in side-wall core samples;• in the absence of a full diameter core, facies C fracture permeability is inferred in the multi- darcy range. The results correlate closely to the Heron-1 well (2.7 km away) providingconfidence in potential reservoir continuity. Correlation with the inversiondata obtained from the 3D seismic data provides further confidence in predictingreservoir continuity. The modern logging suite obtained in Heron-2 confirmed theporosity and permeability assumptions used in MEO's previous Contingent Resourcecalculations. Production testing of Epenarra is being undertaken to determine gas quality andreservoir productivity, confirming that a recoverable resource is present.Testing of this zone can only occur after the completion of drilling andpossible production testing (subject to separate Joint Venture approval) of theunderlying Heron North Elang/Plover target reservoir. The rig is currently drilling the 81/2 inch hole through the lower sections ofthe Flamingo formation, which is immediately overlying the Heron North Elang/Plover objective. A further report describing current drilling operations willbe made later in the week in the regular weekly drilling report." 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 JonesFinance Limited 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 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 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 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