Cambrian Mining Investment
2 July
2008
AIM:
XTR
Cambrian Mining Investment in Xtract Energy
The Board of Xtract Energy plc ("Xtract" or "the Company") notes the
announcement made this morning by Cambrian Mining Plc ("Cambrian")
concerning the sale of 36.5 million shares and warrants in Xtract to
Wasabi Energy Ltd ("Wasabi") and its plans to distribute the majority
of its remaining shares in Xtract to Cambrian shareholders by way of
a dividend in specie. Cambrian, together with its wholly-owned
subsidiary, Cambrian Investment Holdings Ltd, currently owns
approximately 369.8 million shares in Xtract (representing
approximately 50.1% of Xtract's issued share capital).
The Board of Xtract welcomes the conclusion of this aspect of
Cambrian's strategic review and believes that clarity on the future
of Cambrian's shareholding in Xtract removes a significant level of
uncertainty.
Xtract is pleased to see Wasabi, an Australian listed diversified
energy company, becoming a key investor. Xtract and Wasabi already
have an established and supportive relationship which the Board
intends to continue. Xtract also welcomes the Cambrian shareholders
who will shortly become investors through the proposed dividend in
specie. Xtract will ensure that prospective new shareholders are
included in the Company's investor relations programme.
The Board of Xtract remains confident that the Company is well placed
to capitalise on the significant growth opportunities present in its
diversified portfolio, and it continues to believe that it has the
potential to generate strong returns for its shareholders.
Andy Morrison, CEO Xtract Energy plc, commented:
"This morning's announcement from Cambrian removes uncertainty and
provides an opportunity to broaden Xtract's shareholder base. I would
like to welcome both Wasabi and the prospective Cambrian shareholders
to the Company. I believe there is now a real opportunity for new and
existing shareholders to benefit from Xtract's strong growth
potential."
Further information on Xtract at www.xtractenergy.co.uk.
For further information, please contact:
Xtract Energy plc Andy Morrison, CEO +44
(0) 20 7079 1798
Smith & Williamson David Jones
+44 (0) 20 7131 4000
Corporate Finance Ltd Azhic Basirov
Scott Harris Stephen Scott
+44 (0) 20 7653 0030
Victoria Gräfin
Strawitz
Xtract Energy Plc
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.
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 nterests 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 has
recently been 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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