Xtract Energy plc (LON:XTR) 1 September 2008
AIM: XTR
XTRACT ENERGY PLC
("Xtract" or the "Company")
INVESTMENT UPDATE - Merty Energy
Further to the announcement made on 16 July 2008, Xtract Energy Plc
('Xtract') is pleased to announce the completion of a definitive
agreement with Merty Energy, Petroleum Exploration, Education and
Services Inc ('Merty') of Turkey regarding an investment in a new
exploration and production joint venture. Xtract and Merty, together,
aim to create a new medium-sized oil and gas exploration and
production business initially focused on Turkey, where Merty has
particular expertise and experience.
Under the terms of the agreement, the parties have agreed to create a
new Turkish company in which Xtract and Merty will initially have 20%
and 80% interests respectively. Further to Xtract's initial
investment of US$1.5 million made in July, Xtract has agreed to
invest an additional US$3.5 million to fund the initial work
programme of the new company and Merty will apply for the transfer of
a portfolio of seven licence interests currently owned by Merty into
the joint venture company. Xtract has the option to increase its
shareholding in the new company to 34% by contributing a second
tranche of US$3.5 million before 30 June 2009.
The seven licence interests to be transferred to the new company
include 100% interests in offshore licences at Candarli Bay and in
the Sea of Marmara and onshore licences at Edirne and Siraseki plus
an 80% interest in an onshore licence at Alasehir/Sarakiz. The
remaining 20% of the Alasehir/Sarakiz licence will continue to be
owned by Turkish company, Petrako Petrol Gas and Industrial Co.
The first joint venture well in the Alasehir/Sarakiz licence area is
on schedule for drilling in October 2008. The intention of the new
company is that the lower risk onshore developments at
Alasehir/Sarakiz and at Edirne will provide early oil and gas
revenues that will largely enable the company to develop the offshore
licences, including the very exciting prospect at Candarli Bay.
Further announcements on the joint venture and its drilling plans
will be made as appropriate.
About Merty
Merty is an oil and gas company that owns 18 exploration licences in
several basins of Turkey. It has successfully discovered new gas
fields in a licence where it is the operator. It also provides
consulting, support and operations services to parties operating in
the hydrocarbon, geothermal, coal and ore exploration, production and
asset development sector in Turkey, the Middle East and the CIS
countries. It has local and international technical expertise in all
aspects of hydrocarbon exploration.
Merty's services include:
* Geological, Geophysical, Geochemical and Petroleum Engineering
Services
* Acquiring Oil and Gas Exploration and Production Licences, Oil
and Gas Production Fields
* Assisting Oil and Gas Companies in Exploration and Production
* Assisting Mining Companies in Exploration and Production
* Data Acquisition and Interpretation for Exploration and
Production
* Environmentally Friendly and Efficent Energy Solutions
* Oilfield and Office Logistics, including Shipping and
Transportation
* Strategy Planning
* Geotechnical Services
* Environmental Studies
* Coal Bed Methane Feasibility Studies
For further information on Merty please visit www.mertyenergy.com
Enquiries please contact:
Xtract Energy plc Andy Morrison, CEO +44 (0) 20 7079 1798
Smith & Williamson Corporate David Jones +44 (0) 20 7131 4000
Finance Limited Azhic Basirov
Scott Harris Stephen Scott +44 (0) 20 7653 0030
Ian Middleton
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 energy sector technologies and businesses with very significant
growth potential. We aim to work closely with the associated
management teams to achieve critical project milestones, to finance
later development stages, and to build and crystallise value for all
shareholders and partners.
A short description of the principal assets of Xtract is set out
below. These assets are either held directly or through wholly owned
subsidiaries of the Company.
MEO Australia
MEO is focused on developing gas-to-liquids ("GTL") projects in the
Timor Sea Australia, in an area of shallow water known as Tassie
Shoal. It has secured Commonwealth 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
5,370km2 exploration and production licence in the Danish North Sea
and an investment in Dragon Energy Inc, a private Canadian company,
with a development project in Gansu Province, China.
Wasabi Energy
Wasabi is a diversified investor in renewable energy and low
greenhouse emission technologies, with interests in geothermal
waste/heat, uranium exploration in Australia's Northern Territory and
biodiesel investments in Victoria.
Central Asian Interests
Xtract's Central Asian interests include a production sharing
agreement with Kyrgyzneftegaz to instigate a water injection project
on the Beshkent-Togap oil field. Xtract also holds interests in
several exploration licences in the Tash Kumyr area and in the
Toktogul exploration licence.
Oil Shale
Xtract has oil shale and related petroleum product exploration rights
over mining tenements in the Julia Creek area of Queensland and was
granted an exploration permit which gives rights to explore for oil
shale in an area in the South of New Zealand. It is investigating the
commercial production of hydrocarbons (crude oil) from oil shale.
Xtract is also available for trading on the open market segment of
the Frankfurt Stock Exchange (ticker R9X.FSE).
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Xtract Energy plc
http://www.xtractenergy.co.uk/
ISIN: GB00B06QGC57
Stock Identifier: AIMX.XTR
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