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 prepares Sarikiz-3 for production testing, looks to farm out Candarli Bay
Xtract Energy (AIM: XTR) said its 50% owned Turkish subsidiary Extrem Energy AS has extended its license over the Candarli Bay area in Turkey until October 2012 and hired a marketing firm to find a farm-out partner for the project, while preparing to production test the Sarikiz-3 well after identifying a number of promising levels via analysis of the wire-line logs and other well data.
The levels selected to be tested in the Sarikiz-3 well lie within the depth range 1620-1969 metres and correspond to a total net pay zone of approximately 35 metres. Preparations for the testing are underway with the first perforations expected to take place this week and the operation scheduled for completion in approximately one month.
The extension of the Candarli Bay license, also in Turkey, has led to an extension of the drilling commitment date to April 2011. The license commitments can be extended for a further year if required. Extrem has also entered into a marketing services agreement with Schlumberger’s (NYSE: SLB) IndigoPool, which will now provide marketing and advisory services directed towards finding one or more farm-in partners to explore and appraise the license.
Earlier this month, Xtract said that well pressures and other indicators in the Sarikiz-3 well were comparable with those experienced previously 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.
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.
