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 associate Elko Energy seals Danish farm-out deal with Noreco
Xtract Energy’s (AIM: XTR) 50%-owned associate, Elko Energy has finalised a farm-out deal with Norwegian Energy Company ASA ('Noreco') in relation to the 02/05 licence offshore Denmark. Elko will receive approximately US$1m in cash from the deal.
Subsequently, Noreco will become operator for the licence with 47% working interest, Elko will retain 33%, and Elko’s existing partner the Danish North Sea Fund hold the remaining 20%. Also under the terms of the deal, should the first exploration well detect hydrocarbons, Noreco will cover Elko's share of the costs associated with the production testing phase.
"It was the significant blue sky potential of the Danish licence that first attracted Xtract to Elko in 2007, so we are particularly pleased to see the asset being taken forward towards the drilling stage next year", Xtract Chief Executive Andy Morrison commented.
Elko said that Noreco shares its vision for the 02/05 licence, it has good regional knowledge and drilling experience as an operator. The partners believe that there is significant resource potential in the under-explored 02/05 licence, and the first exploration well which is planned to be drilled in 2011.
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 further holds 50% in Extrem Energy, a joint venture with Turkish partner Merty Energy. The JV's aim is to create a new medium-sized oil and gas exploration and production business, initially focused on Turkey.
Zhibek Resources, 25% 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.
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 regarding the evaluation and possible development of an oil shale deposit near Tarfaya.
