19 September 2008
XTRACT ENERGY PLC
("Xtract" or the "Company")
INVESTMENT UPDATE - Morocco
Xtract Energy PLC ("Xtract") is pleased to announce a joint venture
agreement with Alraed Limited Investment Holding Company WLL, a
company controlled by His Highness, Prince Bandar Bin Mohd. Bin
Abdulrahman Al-Saud of Saudi Arabia ("HH Prince Bandar"). The joint
venture has been established to evaluate and develop oil shale
projects in Morocco. The joint venture company, Xtract Energy (Oil
Shale) Morocco SA, has recently signed a Memorandum of Understanding
with the Office National des Hydrocarbures et des Mines ("ONHYM") 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.
The agreements cement a close association between Xtract, HH Prince
Bandar and ONHYM in the exploration, extraction and mining of oil
Xtract continues to develop its proprietary oil shale extraction
technology, and the joint venture in Morocco presents a valuable
opportunity to expand the potential application of this new
technology and to place the Company at the forefront of oil share
exploration and development in North Africa.
Andy Morrison, Chief Executive of Xtract, said "We chose to work with
HH Prince Bandar because of his tremendous experience of investing in
the Middle East and Africa and with our joint expertise, coupled with
that of ONHYM, the development prospects are very promising."
HH Prince Bandar added that "Morocco is a very attractive country.
The major potential in terms of oil shale resources is coupled with
the highly skilled human resources available. Now with the expertise
of ONHYM joined to that of our partner Xtract, we have gathered the
key factors required to turn these real opportunities into successful
Enquiries please contact:
Xtract Energy Andy Morrison, CEO +44 (0)20 7079 1798
Smith & Williamson Corporate David Jones +44 (0)20 7131 4000
Finance Limited Azhic Basirov
Scott Harris Stephen Scott +44 (0)20 7653 0030
For further Information on Xtract please visit www.xtractenergy.co.uk
About Xtract Energy
Xtract identifies and invests in a diversified portfolio of early
stage energy sector technologies and businesses with very significant
growth potential. We aim 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.
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.
MEO is focused on developing gas-to-liquids ("GTL") projects in the
Timor Sea Australia, in an area of shallow water known as Tassie
Shoal. It has secured Commonwealth Government environmental approvals
for two large scale (1.8 Mtpa) methanol plants (50 per cent.
interest) and a 3 Mtpa LNG plant (100 per cent. interest) which are
adjacent to the Evans Shoal gas field.
Elko is an oil & gas exploration company which has an interest in a
5,370km2 exploration and production licence in the Danish North Sea
and an investment in Dragon Energy Inc, a private Canadian company,
with a development project in Gansu Province, China.
Wasabi is a diversified investor in renewable energy and low
greenhouse emission technologies, with interests in geothermal
waste/heat, uranium exploration in Australia's Northern Territory and
biodiesel investments in Victoria.
Central Asian Interests
Xtract's Central Asian interests include a production sharing
agreement with Kyrgyzneftegaz to instigate a water injection project
on the Beshkent-Togap oil field. Xtract also holds interests in
several exploration licences in the Tash Kumyr area and in the
Toktogul exploration licence.
Xtract has oil shale and related petroleum product exploration rights
over mining tenements in the Julia Creek area of Queensland and was
granted an exploration permit which gives rights to explore for oil
shale in an area in the South of New Zealand. It is investigating
the commercial production of hydrocarbons (crude oil) from oil shale.
Xtract is also available for trading on the open market segment of
the Frankfurt Stock Exchange (ticker R9X.FSE).
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