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 Well is Plugged
Xtract Energy (AIM:XTR) revealed today the Sarikiz-2 well in Turkey is to be plugged.
It follows a fraught period in which its local joint venture company, Extrem Energy, was forced to remove a down-hole pump from the well for repairs.
“Attempts were made to re-establish production under natural flow from the Sarikiz-2 well,” the company said in statement to investors.
“However the reservoir inflow performance of the well has deteriorated to the point where only small volumes of formation water with a trace of oil were produced.”
Despite the setback, Xtract remains upbeat on the prospects for the Sarikiz field, but says further evaluation work will be undertaken to confirm the commercial potential area.
Peter Moir, chief executive of Xtract, said: "We are disappointed with the outcome from the Sarakiz-2 well given the initial promise for commercial oil production.
“Xtract is conducting a comprehensive review of its Turkish business, its assets and licence portfolio and we expect to provide an update on this review later this year."
The shares fell 0.15p or 12 per cent to 1.05p.
