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’s Extrem Energy JV completes Sarikiz-3 and prepares for production testing
Xtract Energy (AIM: XTR) reported on the progress being made by its 50% owned Turkish subsidiary Extrem Energy AS, on the Alasehir licence in South-West Turkey. In the past few days, Extrem has completed the drilling, wire-line logging and casing of the Sarikiz-3 exploration well. Xtract said that oil shows were recorded during drilling and preliminary analysis of the wire-line logs provides further indications of hydrocarbons at several levels.
Sarikiz-3 reached a total depth of 2,027m on 16 March 2010, wire-line logging was completed on 20 March and casing was completed and cemented earlier today. Further analysis of the logs and other data is planned for today and tomorrow, in order to prepare the work plan for cased-hole production tests.
According to Xtract, Well pressures and other indicators are comparable with those experienced previously at Sarikiz-2. The oil shows were recorded in mud logs at a number of sandstone intervals in depths between 1,340 and 1,970m.
Xtract stated that in view of the encouraging results, Extrem has decided to keep the drilling rig on station for the production test, consequently saving time and costs associated with additional rig mobilizations. The company noted that this decision will slightly delay the installation of the down-hole pump at Sarikiz-2.
Extrem Energy's preliminary pre-drill P50 (mid-case) estimate of Sarikiz-3’s recoverable oil in place was 5.75mbbl (million barrels), and the company stated that at this stage it is too early to make any updated projections. The estimate was based on a 2 square metre area, an assumed net productive pay thickness of 20m and an assumed 20% recovery factor.
Extrem Energy is Xtract’s exploration and production joint venture with Merty Energy of Turkey. Xtract also owns 50.01 percent of Elko Energy Inc, 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.
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.
