Investment update

(hugin) - 27 August 2009 AIM: XTR XTRACT ENERGY PLC ("Xtract" or the "Company") Investment update - Extrem Energy Xtract Energy Plc ("Xtract") is pleased to provide the following update on operations and development plans at its Turkish joint venture Extrem Energy A.S. ("Extrem Energy"). Alasehir/Sarikiz Licence (Extrem Energy 80%) As previously announced, the Sarikiz-2 well has been shut in as a future production well, with commercial production expected to commence in October, once the construction of the necessary surface facilities has been completed. Following the successful production test, the new well data has been analysed together with seismic data, logs from the former East Sarikiz-1 well and GORE geochemical analysis over the licence area. On the basis of this analysis, the estimated (P50) total oil in place within the greater Sarikiz structures has been revised upwards to 371 mbbl ("Development pending - Contingent resources" according to SPE classification). Using a 20% recovery factor (the more conservative end of the previously announced range), the total recoverable oil in the Sarikiz field is now estimated (P50) to be 74 mbbl. In addition to the re-entry of East Sarikiz-1 which was already announced, analysis of seismic and well logs at the former Alasehir-1 well in the same licence area have also indicated the presence of commercial oil. It has therefore been decided to re-enter this well in order to establish production from the Alasehir field. The forward production drilling programme is now expected to be as follows: 1) Alasehir-1 (re-entry) 2) East Sarikiz-1 (re-entry) 3) Sarikiz-3 (new well) Upon mobilization of the required drilling equipment the above programme is expected to commence in early September and continue through to the end of December 2009. An estimate of the total oil in place on the Alasehir field will be made following the production test. Figures for Alasehir will be in addition to the above estimates. Formal field development plans and reserve categorisation will be finalized once commercial production has been established. Production performance from the initial wells will be analysed to determine the optimal well configuration to drain the structures over a reasonable field life of 20-25 years. Siraseki Licence (Extrem Energy 100%) The results from seismic and GORE geochemical surveys over the Siraseki licence area near the Syrian border have now been processed and have given rise to a new prospect called Menekselik. The sandstone structure is a fault bounded anticline with an estimated area of 11.2 square km and an expected pay thickness of 30m. If the structure contains natural gas, the recoverable gas in place is estimated to be 94 bcf using a 70% recovery factor. Extrem Energy intends to drill the prospect in early 2010 following completion of Sarikiz-3. Edirne Licence (Extrem Energy 100%) The additional seismic programme mentioned in the announcement of 3 August was completed on 9 August. The acquisition of GORE geochemical data commenced on 19 August and is ongoing. The seismic and geochemical data will be analysed together to identify drilling targets in this gas-bearing zone. If successful, these targets will be drill-ready by early 2010. The area is close to existing downstream infrastructure, so production can be established quickly in the event of success. Extrem Energy is also working on plans to appraise and exploit its off-shore licences in Candarli Bay and the Sea of Marmara. All operations are controlled and operated by Merty Energy, Xtract's joint venture partner in Extrem Energy. Xtract holds 34% of Extrem Energy. The information above relating to resource estimates has been provided using the SPE standards and includes the following terms: "mbbl" (million barrels); "bcf" (billion cubic feet); "P50" (midcase scenario in relation to reserve expectations) The above information has been reviewed and approved by Ongun Yoldemir, Managing Director of Extrem Energy, who has a masters degree in geological engineering and worked as an explorationist in the oil and gas sector in the Middle East, Kazakhstan, Azerbaijan, and North Sea, has over 28 years' experience in the resource and energy sector and is a member of the American Association of Petroleum Geologists, European Association of Geologists and Engineers, the Society of Exploration Geophysicists and several related Turkish institutions. Enquiries please contact: Xtract Energy Andy Morrison, CEO +44 (0)20 3205 1148 Smith & Williamson David Jones +44 (0)20 7131 4000 Corporate Finance Azhic Basirov Barrie Newton About Xtract Energy Xtract identifies and invests in a diversified portfolio of early stage energy sector technologies and businesses with significant growth potential. The Company aims to work closely with the associated management teams to achieve critical project milestones, to finance later development stages, and to build and crystallise value for all shareholders and partners. For further information on Xtract please visit www.xtractenergy.co.uk A short description of the principal assets of Xtract is set out below. These assets are either held directly or through wholly owned subsidiaries of the Company. Extrem Energy AS ("Extrem Energy") Extrem Energy is an exploration and production joint venture with Merty Energy of Turkey. The JV's aim is to create a new medium-sized oil and gas exploration and production business, initially focused on Turkey where Merty Energy has particular experience and expertise. Extrem Energy has a portfolio of licence interests including the high potential prospect at Candarli Bay in south-west Turkey. Xtract owns 34% of the issued share capital of Extrem Energy. Elko Energy Inc. ("Elko") 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% interest on 26 offshore blocks in a 5,400 sq km exploration and production licence close to the prolific Central Graben oil field. Technical work indicates the potential for significant reserves. Elko also holds a 60% operating interest in gas-bearing license blocks P1 and P2 in the Dutch North Sea. Xtract owns approximately 35.0% of Elko's issued share capital. Zhibek Resources Ltd ("Zhibek Resources") Zhibek Resources is an oil and gas exploration and production company which has a 72% interest in the Tash Kumyr and Pishkoran exploration licences in the Kyrgyz Republic. Xtract has entered a farm-out agreement to fund a seismic and drilling programme for 2008-09. Xtract owns 25.0% of the issued share capital of Zhibek Resources. Xtract Oil Ltd ("XOL") 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. Xtract has oil shale exploration rights over mining tenements 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 ("XOSM") XOSM is a joint venture with Alraed Limited Investment Holding Company WLL, a company controlled by His Highness, Prince Bandar Bin Mohd. Bin Abdulrahman Al-Saud of Saudi Arabia. XOSM has signed a Memorandum of Understanding with the Office National des Hydrocarbures et des Mines for the purposes of evaluation and possible development of an oil shale deposit near Tarfaya, in the south west part of Morocco. Xtract currently holds 70% of the joint venture. Wasabi Energy Ltd ("Wasabi") Wasabi (ASX: WAS) is a diversified investor in traditional and renewable energy technologies. Amongst its listed assets it holds approximately 38% of Rum Jungle Uranium Ltd (ASX: RUM) which has interests in uranium exploration licenses covering some 4,150 sq km of Australia's Northern Territory and approximately 12.5% of Greenearth Energy Ltd (ASX:GER) which aims to explore and develop geothermal resources in Australia and the wider Pacific Rim. Xtract owns approximately 12.6% of the issued share capital of Wasabi. ---END OF MESSAGE--- This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.

Kontakt-Informationen:
Firma: Xtract Energy plc

Stadt: London



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