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 says Chevron waits for weather window to move rig to P2-10 well location
Xtract Energy (LON:XTR) told investors today that operator of the P2 block in the North Sea Chevron is currently waiting for a suitable weather window to tow the rig to the P2-10 appraisal well location.
The Noble Byron Welliver rig completed its previous work programme in the northern offshore sector of the Dutch North Sea waters on November 24 and is currently being prepared for towing to the P2-10 drilling location offshore the Netherlands.
Chevron said it will move the rig to the drilling location as soon as conditions allow, while Xtract added there were no other reasons for the delay.
The P2-10 appraisal well targets an existing gas discovery on the P2 block in the Duth North Sea. One of the main objectives of the well is to evaluate commercial hydrocarbon flow rates from an extended reach horizontal well within the Rotliegendes sandstone reservoir.
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.
In Denmark, Xtract and operator of the 01/11 license Noreco are preparing to drill the Luna well with the Maersk Resolve jack up drilling rig, which is currently drilling on contract to Maersk Oil and Gas in Denmark.
“Whilst it is frustrating that the P2-10 well has not yet spudded, ‘waiting on weather’ is a very normal occurrence in the North Sea, particularly during winter months,” said chief executive of Xtract Energy Peter Moir.
As the rig is located just 70 kilometres away from the Noble Byron Welliver, it is experiencing similar weather conditions and, as a result, its connection to a specialist stimulation vessel necessary for well stimulation activities has been delayed.
The rig move will require a suitable weather window to undertake the short tow to the Luna location and, accordingly, will be dependent on weather conditions at the time of the rig release by Maersk.
The Luna well, which will test the Rotliegendes play concept on the 01/11 license area, is targeting between 35 and 153 million barrels of oil of resources net to Xtract.
“I am confident that both processes are on track, and look forward to updating the market in due course,” added Moir.
Xtract also holds a royalty interest over the onshore and offshore license portfolio of Turkish group Extrem Energy and 25 percent of Zhibek Resources, which controls the Tash Kumyr exploration licence in the Kyrgyz Republic.
In addition, the group has a 70 percent interest in the Xtract Energy (Oil Shale) Morocco SA joint venture with a Saudi prince-linked company that evaluates an oil shale project near Tarfaya in the southwest of Morocco.
Finally, Xtract's wholly owned subsidiary XOL is focused on the development of the company's oil shale resources in Australia and the technology for oil extraction from oil shale resources.
