Investment update
(Thomson Reuters ONE) - 1 December 2009AIM: XTR XTRACT ENERGY PLC ("Xtract" or the "Company") Operations Update - Extrem Energy ASXtract Energy Plc ("Xtract") is pleased to provide the followingupdate on operations in the Alasehir license area at its Turkishassociate company Extrem Energy AS ("Extrem").Sarikiz-2 ProductionFollowing completion of the Alasehir-1 re-entry project, the drillingrig was mobilized to the Sarikiz-2 site and began a work-oversequence on 25 November 2009 ready for the start of production. Thework-over was completed on 30 November 2009. During the work-over,samples of oil and water were taken for the refinery and municipalityrespectively and the "Christmas Tree" was installed at the surface,ready for production.Work on the surface facilities and on the logistical, permitting andcommercial arrangements for production is substantially complete. Theremaining item required to commence production is a well-site heatingsystem to maintain the condition of the produced crude oil which isexpected to be of waxy composition. The heating system is expected tobe installed in the next few days enabling natural flow to beestablished.Early production will be received by the refinery at Izmir usingtemporary delivery arrangements agreed with them. A joint projectwith the refinery operator is under way to build the necessaryinfrastructure there to receive larger volumes as the Sarikiz fieldis progressively brought on stream. It is now expected that fullpumped volumes from Sarikiz-2 will be produced and delivered by theend of Q1 2010. Until then, production is expected to be based onnatural flow.Further information on the actual natural flow rate achieved and arevised projected pumped rate will be supplied once flow has beenstabilized.Sarikiz-3 DrillingPreparation for the drilling of new well Sarikiz-3 is ongoing. Theland has been acquired and taken over and clearance of the existingvineyard is in progress. Preparation of the concrete base for thedrilling rig will follow, ready for a spud date before the end ofDecember 2009. The drilling contractor is Merty Energy Inc.The Sarikiz-3 prospect is located 525m to the east of Sarikiz-2 wellat the junction of two intersecting 2-D seismic lines. The proposedtotal depth is 1950m. The targeted Alasehir sandstones are expectedto be encountered at depths between 1570m and 1850m. Depending uponhydrocarbon shows and the results of wire line log analysis, 7 inchcasing will be run from the surface to below the target zones andcased-hole production testing will be carried out. The well cost isestimated to be approximately US$3.5m and the drilling programme isplanned on the basis of 45 rig days.Based on a 2 square km area and an assumed net productive paythickness of 20m, Extrem Energy's preliminary pre-drill P50 estimateof the recoverable oil in place from the Sarikiz-3 well is 5.75mbbl,based on an assumed 20% recovery factor.Extrem holds 80% of the relevant license. Xtract holds 34% of Extrem.Alasehir/Sarikiz Field DevelopmentThe actual flow rate achieved during the extended test at Sarikiz-2and the drilling results from Sarikiz-3 will do much to confirm thepotential of the Sarikiz oil field.In view of the high level of uncertainty over the possible extent ofthe oil-bearing structures in the wider Alasehir license area and inorder to enhance planning of further wells after Sarikiz-3, Extrem isevaluating a project to undertake 3-D seismic over the license area.An update will be provided once a decision on the project has beenreached.Commenting on the developments, Andy Morrison, Chief Executive ofXtract said, "We are pleased to note the progress that is being madeby Extrem. Each milestone passed is a first time for the company. Theprevious disappointment at Alasehir-1 reminded us not to takeanything for granted in the oil exploration business, but investmentprospects continue to look attractive at Alasehir and across theExtrem portfolio."The information above relating to resource estimates has beenprovided using the SPE standards and includes the following terms:"mbbl" (million barrels); "P50" (mid-case scenario in relation toreserve expectations).The above information has been reviewed and approved by OngunYoldemir, Managing Director of Extrem Energy, who has a mastersdegree in geological engineering and worked as an explorationist inthe oil and gas sector in the Middle East, Kazakhstan, Azerbaijan,and North Sea, has over 28 years' experience in the resource andenergy sector and is a member of the American Association ofPetroleum Geologists, European Association of Geologists andEngineers, the Society of Exploration Geophysicists and severalrelated Turkish institutions.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 36.8% 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.---END OF MESSAGE---This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 01.12.2009 - 08:01 Uhr
Sprache: Deutsch
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