www.xtractenergy.co.uk
Xtract Energy identifies and invests in a portfolio of early stage oil and gas assets and business interests with significant growth potential. We aim to engage closely with the associate management teams to achieve project milestones, finance early stage asset and business development activity, and then finance the asset development phase, or if appropriate, crystallise value for all shareholders at a suitable exit point. We aim to achieve returns for our shareholders through access to the significant upside rewards associated with our investments.
Xtract Energy Plc (‘Xtract’) was established in 2004 (as then Resmex Plc) and its shares were admitted to trading on AIM at the end of March 2005.
Xtract Energy affiliate Elko identifies North Sea prospect with potential 375 million barrels of oil
Xtract Energy PLC (AIM: XTR) said its 36.8 percent-held affiliate Elko Energy Inc announced that the evaluation of seismic data over the 02/05 licence in the Danish North Sea has identified a Chalk channel with the potential to hold a considerable volume of hydrocarbons, which in a moderate case scenario could be 375 million barrels of recoverable oil.
Elko said the new prospect is in addition to the previously identified deeper Rotliegendes sandstone prospect and the opportunity now exists to evaluate both the Chalk horizon and Rotliegendes sandstone horizon by drilling a single suitably designed well.
Ahead of entering the next phase of the exploration licence in April 2010, an optional commitment to drill a well has to be given to the Danish Energy Agency. Elko estimates the cost of drilling a well capable of evaluating both horizons at US$15 million, excluding production testing. Elko holds an 80 percent interest in the 02/05 licence.
Regarding Elko’s blocks P1 and P2 offshore the Netherlands, Elko continues to hold discussions with a number of potential new financing partners to replace Oyster via a promoted farm out of a percentage of Elko's working interest. The aim is to secure a financing partner ahead of entering the next phase of the exploration licences on both blocks.
Reservoir modeling of the P1-FA field has concluded that the optimal development plan will require five long reach horizontal wells to sustain a plateau production rate of 120 million standard cubic feet per day. An appraisal well location has been identified and a well proposal is under preparation for submission to the Dutch state authorities.
On the P2 Block, reprocessing of previous 3D seismic is ongoing and will be complete by the end of 2009. An additional new prospect has been identified.
Elko is a Canadian registered oil & gas exploration company which has interests in exploration and production licences in the Danish and Dutch North Sea. Its major asset is in the Danish North Sea: an 80 percent interest on 26 offshore blocks in a 5,400 square kilometres exploration and production licence close to the prolific Central Graben oil field. Elko also holds a 60 percent operating interest in gas-bearing license blocks P1 and P2 in the Dutch North Sea.
Xtract Energy also holds 34 percent in its Turkish joint venture group Extrem Energy AS, with Merty Energy of Turkey holding the remainder. Extrem Energy has a portfolio of licence interests including the high potential prospect at Candarli Bay in south-west Turkey.
Zhibek Resources, 25 percent owned by Xtract, is an oil and gas exploration and production company with a 72 percent interest in the Tash Kumyr and Pishkoran exploration licences in the Kyrgyz Republic.
Xtract's wholly owned subsidiary Xtract Oil Ltd is focused on the development of the company's oil shale resources in Australia and the technology for oil extraction from oil shale resources. Xtract has oil shale exploration rights over mining tenement in the Julia Creek area of Queensland. In addition to evaluating third party technologies, XOL has been developing proprietary technology for the commercial extraction of liquid hydrocarbon products from oil shale.
Finally, Xtract Energy (Oil Shale) Morocco SA is a 70:30 joint venture with Alraed Ltd Investment Holding Company WLL, a company controlled by Prince Bandar Bin Mohammed Bin Abdulrahman Al-Saud of Saudi Arabia. XOSM has signed a Memorandum of Understanding with the Moroccan oil and mining ministry regatrding the evaluation and possible development of an oil shale deposit near Tarfaya.
