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 draws down £300,000 on YA Global equity line
Xtract Energy PLC (LON:XTR) said it has drawn down £300,000 on its Standby Equity Distribution Agreement (SEDA) with YA Global Master SPV Ltd, an investment fund managed by Yorkville Advisors LLC.
The SEDA was announced at the end of August and provides potential funding of up to £12.5 million.
This draw down has been undertaken at a price of 1.7 pence per share and will result in the issue of 17,647,059 ordinary shares to Yorkville. The funding will be used as working capital.
Xtract chief executive Peter Moir said: “This draw down has been made at a 36 percent premium to the placing price of early September (which raised £3 million from institutional investors). It is encouraging that investors realise the potential future growth in the company."
The placing helped fund the acquisition of the outstanding 50 percent of shares Xtract did not own in Elko Energy, an explorer of oil and gas offshore Denmark.
Elko’s major asset in the Danish North Sea is a 33 percent working interest in an exploration and production licence 02/05 and a 33 percent working interest in an adjoining exploration and production licence 01/11, east of the prolific Central Graben oil kitchen. The first well, called Luna, will be drilled later this year to test the Rotliegendes play in an optimum position for reservoir quality, thickness and hydrocarbon charge in the combined prospective area.
In the Netherlands, also offshore, Elko Energy and Elko Exploration hold interests on the P1 and P2 blocks operated by Chevron Corp (NYSE:CVX). Chevron plans to drill an appraisal well on block P2 during the fourth quarter of 2011.
Xtract has an overriding royalty arrangement of up to 5 percent of the sales value from Chevron's share of gas delivered into the Dutch national transmission system and Chevron condensate delivered onshore.
