22 September 2008
AIM: XTR
XTRACT ENERGY PLC
("Xtract" or the "Company")
PROJECT UPDATE - MEO Australia Ltd
Xtract refers shareholders to the following press release announced
in Australia by MEO Australia Ltd ("MEO"). Xtract holds approximately
13.9% of the issued capital of MEO.
"ASX AND MEDIA RELEASE
MEO Increases interest in WA-361-P & Zeus-1 to 35%
Key Points:
* Cue and Gascorp have each elected NOT to fund 5% of the Zeus-1 well
* Additional 10% intrest reverts to MEO, taking interst in WA-361-P
to 35%
MELBOURNE, AUSTRALIA (September 21, 2008) - MEO Australia Limited
(ASX: MEO) is pleased to advise that Cue and Gascorp have advised MEO
that they have elected not to exercise their respective options to
each fund 5% of the Zeus-1 well to retain a 20% working interest.
Under the terms of the farm-in agreement with MEO, this combined 10%
interest will now be transferred to MEO, together with the associated
10% funding obligation, increasing MEO's interest to 35%.
+-------------------------------------------------------------------+
| WA-361-P Participating Interests |
| (Post Cue/Gascorp Election NOT to fund 5% of Zeus-1) |
|-------------------------------------------------------------------|
| North West Shelf Exploration Pty Ltd | 35% | Operator |
|-----------------------------------------+-----+-------------------|
| Resource Development International Pty | 35% | Farming in to MEO |
| Ltd | | |
|-----------------------------------------+-----+-------------------|
| Cue Exploration Pty Ltd | 15% | ASX: CUE |
|-----------------------------------------+-----+-------------------|
| Gascorp Australia Pty Ltd | 15% | Unlisted |
|-------------------------------------------------------------------|
| *Wholly owned subsidiary of MEO Australia |
+-------------------------------------------------------------------+
The Zeus-1 well is targeting a multi-Tcf gas play in the Carnarvon
Basin, off Australia's North West Shelf. MEO is paying 20% of the
costs of Zeus-1 to a cap of US$31.25m and retains a 35% interest in
the well and WA-361-P. In the event of a major discovery at Zeus-1,
MEO sees a plethora of commercialisation options including the
possible application of Floating LNG (FLNG) technology. The Songa
Venus semi-submersible rig is expected on location late October 2008.
Jurgen Hendrich
Managing Director & CEO
MEO Australia Limited
Operator of WA-361-P"
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
Ian Middleton
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 Australia
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 Energy
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 Energy
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.
Oil Shale
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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