Xtract Energy to carry out further work-over ops at Sarikiz-2

In an update on its operations in Turkey, Xtract Energy (LON:XTR) said that its 50%-owned subsidiary Extrem Energy will install a mechanical bridge plug and a down-hole pump into the Sarikiz-2 well, in an attempt to re-establish production and increase production rates.

Extrem’s rig has been at the Sarikiz-2 since May, where work-over operations have been ongoing to boost production. Previously, Sarikiz-2 began production at natural flow rates on 13 January 2010.
The work-over program involved cement repairs to isolate unproductive zones, however the company said that the operations proved more difficult than initially expected.  As a consequence, the company said it is necessary to install a mechanical bridge plug to the well. Extrem noted that it expects to run this component in the well next week.

The initial work-over plan also involved the installation of a down-hole pump to increase production rates. The company said that the pump will be installed once the bridge plug is in place. Back in April, Xtract said that the down-hole pump is expected to boost Sarikiz-2 oil production to approximately 350 bbl/day.
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.

Last month, Xtract’s Elko reported that its net prospective resource has now reached 936 million barrels of oil (mbo) after TRACS International updated the Independent Competent Persons Report (CPR) for the Denmark exploration license 02/05 and the Netherlands licenses P01 and P02.

On the Danish license, where Elko retains 33% interest following a recent farm-out to the Norwegian Energy Company ASA (Noreco), Elko’s estimated attributable prospective resource now stands at 3,557 billion cubic feet (bcf) of gas or 936 million barrels of oil (mbo). Elko and Noreco are currently carrying out technical studies to optimize the first well location. The partners are planning to drill the first exploration well in 2011.

According to TRACS, the Dutch acreage contains a substantial number of proven discoveries and undrilled exploration prospects.

TRACS estimates contingent resources, for the 5 confirmed discoveries, at 280bcf of un-risked net attributable hydrocarbon gas, with a commercial chance of success ranging from 40% to 75%. The consultant also estimates prospective resources, for the 6 key prospects in the exploration portfolio, of 291bcf un-risked net attributable hydrocarbon gas. TRACS assigned the probability of success, for the 6 prospects, between 45% and 65%.

Xtract’s other investments included: Zhibek Resources (25% owned), an oil and gas exploration and production company with a 72% interest in exploration licences in the Kyrgyz Republic; Xtract's wholly owned subsidiary Xtract Oil Ltd is focused on the development of oil shale resources and technology in Australia; And finally, Xtract Energy (Oil Shale) Morocco SA is a 70/30 joint venture with Alraed Ltd Investment Holding Company WLL, to evaluate potential oil shale prospects near Tarfaya, Morroco.