Investment Update
16 July 2008
AIM: XTR
XTRACT ENERGY PLC
("Xtract" or the "Company")
INVESTMENT UPDATE
Xtract is pleased to announce the completion of the first round of
talks with Merty Energy, Petroleum Exploration, Education and
Services Inc ('Merty') of Turkey regarding a proposed investment in a
new exploration and production joint venture. Xtract and Merty,
together, aim to create a new medium-sized oil and gas exploration
and production business initially focused on Turkey, where Merty has
particular expertise and experience.
In this first stage, Xtract has agreed to provide US$1.5 million of
secured interim finance to enable Merty to obtain drilling equipment
for the first proposed joint venture well in the Alesehir/Sarakiz
prospect which is scheduled for first drilling in October 2008.
Following this agreement, Xtract and Merty intend to negotiate and
enter into definitive agreements for the proposed new joint venture
company. In the event that definitive agreements are not entered into
by 31 August 2008, the interim finance will become repayable by Merty
by 30 September 2008.
Further announcements on the subject will be made as appropriate.
Enquiries please contact:
Xtract Energy Plc Andy Morrison, +44 (0) 20 7079 1798
CEO
Smith & Williamson David Jones +44 (0) 20 7131 4000
Corporate Finance Limited Azhic Basirov
Scott Harris Stephen Scott +44 (0) 20 7653 0030
Ian Middleton
About Merty
Merty is an Oil and Gas company that owns about 18 exploration
licenses in several basins of Turkey. It has successfully discovered
new gas fields in a license where it is the operator. It also
gives consulting, support and operations services parties in the
business for hydrocarbon, geothermal, coal and ore explorations,
productions and asset development in Turkey, in the Middle East and
the CIS Countries. It has experienced local & international
technical experts in all aspects of hydrocarbon exploration.
Merty's services include;
* Geological , Geophysical, Geochemical and Petroleum Engineering
Services
* Acquiring Oil and Gas Exploration & Production Licences, Oil and
Gas Production Fields
* Assisting Oil and Gas Companies in Exploration & Production
* Assisting Mining Companies in Exploration & Production
* Data Acquisition, and Interpretation for Exploration and
Production
* Environment Friendly & Efficent Energy Solutions
* Oilfield and Office Logistics, Including Shipping and
Transportation
* Strategy Planning
* Geotechnical Services
* Environmental Studies
* Coal Bed Methane Feasibility Studies
For further information on Merty please visit www.mertyenergy.com
About 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.
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).
For further information on Xtract please visit www.xtractenergy.co.uk
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