Investment update
(Thomson Reuters ONE) - 1 September 2009AIM: XTR XTRACT ENERGY PLC ("Xtract" or the "Company") Investment update - Elko EnergyXtract Energy Plc ("Xtract") notes below the Shareholder Update whichwas issued by Elko Energy Inc ("Elko Energy") to its shareholders onFriday 28 August. Xtract currently owns approximately 35.0% of theissued capital of Elko Energy.Xtract takes this opportunity to update investors on the progress ofthe conditional agreement with Lysander Minerals Corporation("Lysander") which was announced to the market on 28 April 2009. Theconditional agreement involves the possible injection of Xtract'sholding in Elko Energy into Lysander in exchange for new Lysandershares. At the present time, discussions with Lysander are pausedwhile Lysander works on its other planned investments. Negotiationson the conditional agreement may or may not resume at a later date.Further updates will be provided as appropriate."Elko Energy Inc. ('Elko') is pleased to provide this further updateon the ongoing development of the Elko business.Disposal of Shares in Dragon Energy Inc. ("Dragon")The respective boards of Elko and Dragon have been in negotiation forsome time in relation to Elko exiting its equity position in Dragonso that it can dedicate its management efforts and financialresources to its Dutch and Danish North Sea assets. On August 26,2009, Elko and Dragon signed an overriding royalty agreement wherebyElko will benefit from a 2.5% overriding royalty from future revenuesfrom the Kotaneelee field *, over a maximum term of five years, suchfive year period commencing August 26, 2009, capped at an aggregatevalue of CDN$750,000. In exchange Elko has returned to Dragon15,600,000 common shares representing its 51% ownership. Jack Bray,Peter Moir and Andy Morrison have resigned from the board of Dragon.* Dragon holds a 30.667% working interest in the Kotaneelee field inthe Yukon territory Canada operated by Devon. Gas production atKotaneelee is in decline and gas prices in North America arecurrently depressed resulting in a significantly weakened revenuestream from current production levels.Business Update1) NetherlandsThe geology, geophysical and reservoir engineering definitions of theP1-FA field have been further developed to create an outline fielddevelopment plan. An appraisal well location has been identified andthis will be discussed with our Dutch state partner EBN in the nearfuture.Discussions with offshore facilities and pipeline infrastructureowners have identified a number of options for the offshore removaland storage of CO2 and the onward transportation of sales gas toEuropean markets. Discussions continue with selected infrastructureowners to identify the best economic route to commercialize the P1/P2assets.Elko has had discussions with a number of potential new financingpartners to replace Oyster via a promoted farm out of a percentage ofElko's working interest in Blocks P1 and P2. These partneringdiscussions continue in parallel with our discussion withinfrastructure owners.2) DenmarkReprocessing of approximately 3,000 km of seismic data is nowcomplete on our 02/05 Danish licence and work has commenced inevaluating the potential of the Chalk interval and to reevaluate theRotliegendes sandstone horizon. The results will be part of a plannedmarketing initiative aimed at securing an additional financingpartner or partners.Peter MoirPresidentAugust 28, 2009"Further information on Elko can be found at www.elkoenergy.com. As anunquoted company, Elko is not subject to the AIM Rules and theinformation contained in this announcement has not been reviewed by anamed "qualified person" as defined and required by the AIM GuidanceNote for Mining, Oil and Gas Companies.Enquiries please contact:Xtract Energy Andy Morrison, CEO +44 (0)20 3205 1148Smith & Williamson David Jones +44 (0)20 7131 4000Corporate Finance Azhic Basirov Barrie NewtonAbout Xtract EnergyXtract identifies and invests in a diversified portfolio of earlystage energy sector technologies and businesses with significantgrowth potential. The Company aims to work closely with theassociated management teams to achieve critical project milestones,to finance later development stages, and to build and crystallisevalue for all shareholders and partners.For further information on Xtract please visit www.xtractenergy.co.ukA short description of the principal assets of Xtract is set outbelow. These assets are either held directly or through wholly ownedsubsidiaries of the Company.Extrem Energy AS ("Extrem Energy")Extrem Energy is an exploration and production joint venture withMerty Energy of Turkey. The JV's aim is to create a new medium-sizedoil and gas exploration and production business, initially focused onTurkey where Merty Energy has particular experience and expertise.Extrem Energy has a portfolio of licence interests including the highpotential prospect at Candarli Bay in south-west Turkey. Xtract owns34% of the issued share capital of Extrem Energy.Elko Energy Inc. ("Elko")Elko is a Canadian registered oil & gas exploration company which hasinterests in exploration and production licences in the Danish andDutch 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 andproduction licence close to the prolific Central Graben oil field.Technical work indicates the potential for significant reserves. Elkoalso holds a 60% operating interest in gas-bearing license blocks P1and P2 in the Dutch North Sea. Xtract owns approximately 35.0% ofElko's issued share capital.Zhibek Resources Ltd ("Zhibek Resources")Zhibek Resources is an oil and gas exploration and production companywhich has a 72% interest in the Tash Kumyr and Pishkoran explorationlicences in the Kyrgyz Republic. Xtract has entered a farm-outagreement 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 developmentof the Company's oil shale resources in Australia and the technologyfor oil extraction from oil shale resources. Xtract has oil shaleexploration rights over mining tenements in the Julia Creek area ofQueensland. In addition to evaluating third party technologies, XOLhas been developing proprietary technology for the commercialextraction of liquid hydrocarbon products from oil shale.Xtract Energy (Oil Shale) Morocco SA ("XOSM")XOSM is a joint venture with Alraed Limited Investment HoldingCompany WLL, a company controlled by His Highness, Prince Bandar BinMohd. Bin Abdulrahman Al-Saud of Saudi Arabia. XOSM has signed aMemorandum of Understanding with the Office National desHydrocarbures et des Mines for the purposes of evaluation andpossible development of an oil shale deposit near Tarfaya, in thesouth west part of Morocco. Xtract currently holds 70% of the jointventure.Wasabi Energy Ltd ("Wasabi")Wasabi (ASX: WAS) is a diversified investor in traditional andrenewable energy technologies. Amongst its listed assets it holdsapproximately 38% of Rum Jungle Uranium Ltd (ASX: RUM) which hasinterests in uranium exploration licenses covering some 4,150 sq kmof Australia's Northern Territory and approximately 12.5% ofGreenearth Energy Ltd (ASX:GER) which aims to explore and developgeothermal resources in Australia and the wider Pacific Rim. Xtractowns 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.
Datum: 01.09.2009 - 11:04 Uhr
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