Further Investment

4 May 2007 17:40

Xtract Energy plc04 May 2007 4 May 2007 AIM: XTR Xtract Energy Plc ("Xtract") Further Investment in MEO Australia Xtract Energy plc is pleased to announce the further investment in MEO AustraliaLimited ("MEO") through the exercise of 28,598,157 A$0.25 options. Xtract,via its wholly owned subsidiary Cambrian Oil & Gas, now holds 77,116,814shares or approximately 28% of the issued capital of MEO. MEO has successfully completed the acquisition of new 2D and 3D seismic dataover the Epenarra structure, located in MEO's 100% owned Exploration Permit NT/P68 in the Timor Sea. Epenarra is a broad, low relief anticline structure withmapped closure of approximately 1,200 square kilometres, located entirely withinAustralian waters. The data has been acquired to confirm optimal well locationsfor the Heron-2 appraisal well and the Blackwood-1 exploration well. MEO intends drilling up to three wells (Heron-2, Blackwood-1 and potentiallyHeron-3) in the Permit area and has secured a new jack-up rig to undertake thedrilling. The rig is expected to arrive on location in September 2007. MEO has previously secured Australian Commonwealth Government environmentalapprovals for two large scale (1.8 mtpa) methanol plants (50% interest) and a 3mtpa LNG plant (100%), in the Timor Sea, approximately 275 km northwest ofDarwin, Australia, in an area known as Tassie Shoal. Enquiries in relation to Xtract please contact: Xtract Energy plc John Newton, CEO +44 (0) 20 7409 0890 Smith & Williamson Corporate David Jones +44 (0) 20 7131 4000Finance Limited Azhic Basirov This information is provided by RNS The company news service from the London Stock Exchange