Xtract Energy - looking for oil in shale. Feasible and cost effective? Anyone in these at present?

Xtract Energy Increases Its Holding In Turkish JV As Test Results Put It On Track For First Oil In October


Having earlier this month sold off its remaining holding in loss-making gas-to-liquids outfit MEO, Xtract Energy is increasingly turning its attention to Turkish E&P Extrem Energy. This month AIM-listed Xtract upped its stake in Extrem to 34 per cent as successful drilling results put the joint venture company on track for first oil later this year.
Xtract made its initial investment in July 2008 when it put US$5 million in a new joint venture company with Turkeys Merty Energy. This gave Xtract an initial 20 per cent stake in the new company, Extrem, which had a portfolio of seven licence interests in Turkey. These included offshore licences at Candarli Bay and in the Sea of Marmara and onshore licences at Edirne and Siraseki plus an 80 per cent interest in an onshore licence at Alasehir/Sarakiz. The latter was a lower risk project with the potential for near-term production and revenues, which could then be used to finance higher risk, higher impact exploration, such as a large offshore prospect in Candarli Bay.

Drilling work on the Alasehir/Sarakiz licence area got underway in Q4 2008, and the results have prompted Xtract to exercise its right to increase its equity in Extrem to 34 per cent. The Sarikiz-2 well logged 23 sandstone intervals with producible oil, of which 12 levels with a combined reservoir thickness of 75 metres were selected for production testing. The well was production tested this summer and the results indicate a well capable of delivering 690 barrels per day from the tested zones and a potential 450 bpd from the untested zones (not all levels can be produced at once due to production techniques). Four levels have been selected for initial production at a rate of 350 bpd, with first oil due in October following completion of surface facilities.

The success of these drilling results has boosted the reserves estimates on the former state-owned field, which is now reckoned to have a P50 oil-in-place number of 371 mllion barrels (a sharp increase on the 190 million barrel estimate released in April 2009), with a P50 recoverable number of 74 million barrels (based on a conservative 20 per cent recovery rate).

The company has now devised a forward work programme to chase down more of these barrels, including the re-entry of the Alasehir-1 well, re-entry of the East Sarikiz-1 well and drilling of a new well, Sarikiz-3. This should keep the company through September to the end of the year, by which point it hopes to have two wells in commercial production.

Extrem is also looking at the potential elsewhere in its portfolio. Seismic work has been completed on the Edirne licence in the Thrace Basin, a gas-prone area of western Turkey, and a geochemical survey got underway in August. The company hopes to drill here in 2010 and is hopeful that any discoveries could be quickly brought into production given the proximity to existing downstream infrastructure. There has also been a geochemical study on the Siraseki licence near the Syrian border, home to the 94 bcf Menekselik prospect, which is a candidate for drilling in early 2010. Work on the offshore licences is still at the planning stage.

This certainly makes for an interesting E&P start-up investment for AIM-quoted Xtract, which in little over a year from in its initial investment is set to see revenues start flowing from the Alasehir/Sarakiz licence. This will make Extrem a solid performer in the investment portfolio, providing a bedrock of production and cashflow against which to measure Xtracts other early stage investments, which include geothermal energy projects in Australia, oil shale resources in Morocco and exploration companies like Elko Energy in Denmark and Zhibek Resources in the Kyrgyz Republic.

14 September 2009

AIM: XTR

XTRACT ENERGY PLC
("Xtract" or the "Company")

Investment update - Wasabi Energy Limited

Xtract Energy Plc ("Xtract") wishes to announce that on 10 September
2009 it sold 126,551,786 ordinary shares in Wasabi Energy Limited
("Wasabi") for an aggregate consideration of A$1,392,070. As a result
of the transaction, Xtract is no longer a substantial holder in
Wasabi, with a remaining holding of approximately 2.9% of the issued
ordinary shares of that company.

Commenting on the disposal, Chief Executive of Xtract, Andy Morrison
said, "The disposal of the major part of our position in Wasabi is
consistent with Xtract's recent policy of increasing focus on its oil
and gas assets to build a portfolio with near term production
combined with significant longer term potential".

Their money is evidently heading for Turkey. From their 27 August 2009 RNS further drilling is due to commence this month:

As previously announced, the Sarikiz-2 well has been shut in as a
future production well, with commercial production expected to
commence in October, once the construction of the necessary surface
facilities has been completed.

Following the successful production test, the new well data has been
analysed together with seismic data, logs from the former East
Sarikiz-1 well and GORE geochemical analysis over the licence area.
On the basis of this analysis, the estimated (P50) total oil in place
within the greater Sarikiz structures has been revised upwards to 371
mbbl ("Development pending - Contingent resources" according to SPE
classification). Using a 20% recovery factor (the more conservative
end of the previously announced range), the total recoverable oil in
the Sarikiz field is now estimated (P50) to be 74 mbbl.

In addition to the re-entry of East Sarikiz-1 which was already
announced, analysis of seismic and well logs at the former Alasehir-1
well in the same licence area have also indicated the presence of
commercial oil. It has therefore been decided to re-enter this well
in order to establish production from the Alasehir field. The forward
production drilling programme is now expected to be as follows:

1) Alasehir-1 (re-entry)
2) East Sarikiz-1 (re-entry)
3) Sarikiz-3 (new well)

Upon mobilization of the required drilling equipment the above
programme is expected to commence in early September and continue
through to the end of December 2009.

An estimate of the total oil in place on the Alasehir field will be
made following the production test. Figures for Alasehir will be in
addition to the above estimates.

Formal field development plans and reserve categorisation will be
finalized once commercial production has been established. Production
performance from the initial wells will be analysed to determine the
optimal well configuration to drain the structures over a reasonable
field life of 20-25 years.

Does this still hold true:

Evil Knievel himself has bought into XTR and sees a XTR SP of 10p as realistic, compared to the current 3.175p. Certainly there is a lot of upward scope in the XTR SP.

From another BB:

Worth looking at City Natural Resources High Yield Trust (CYN) who have EXT and KAH as top 2 holdings and runs at a decent discount to NAV. Also some other goodies in there.

1. Extract Resources 6.2
2. Kalahari Minerals 4.9
3. Goldcorp 4.9
4. New Britain Palm Oil 2.9
5. Kiwara 2.7
6. Nido Petroleum 2.7
7. REA Ordinary and 9.5% Pref 2.7
8. Randgold Resources 2.0
9. FMG Finance 9.75% 2013 1.7
10. Pike River Coal 1.7
Top 10 holdings represent 32.4%

Xtract update on Turkish joint venture
Business Financial Newswire
Xtract Energy says that drilling is going ahead at its Turkish joint venture Extrem Energy in connection with the re-entry and completion of the Alasehir-1 well on the Alasehir licence area.

If commercial oil flow rates are confirmed, Extrem Energy intends to combine production with that planned from Sarikiz-2 well, using the surface facilities that are being prepared at that site.

The Sarikiz-2 site is expected to become the hub for development of both the Alasehir and Sarikiz oil fields. The total duration of production testing and well completion is estimated to be 30 days.

21 September 2009

AIM: XTR

XTRACT ENERGY PLC
("Xtract" or the "Company")

Investment Update - Extrem Energy


Xtract Energy Plc ("Xtract") is pleased to provide the following
update on operations at its Turkish joint venture Extrem Energy A.S.
("Extrem Energy") in connection with the re-entry and completion of
the Alasehir-1 well on the Alasehir licence area.

The required drilling equipment mentioned in the announcement dated
27 August 2009 was received and the rig was mobilised to the well
site, arriving on station on 17 September. The well was re-entered on
19 September. During operations, flammable gas from the perforation
intervals made during former operations in 1999 was observed and
burned at the surface. Today, it is planned that those zones will be
sealed by a bridge plug. After their isolation CBL-VDL logging will
be undertaken to check the integrity of the pre-existing casing and
the cement bond. Depending on the results of the logs, some minor
repairs to the casing will be carried out. Once this is complete,
perforation and flow testing will commence.

According to the work programme, five intervals have been selected
for testing ranging in depth from 1573m to 1802m. If commercial oil
flow rates are confirmed, Extrem Energy intends to combine production
with that planned from Sarikiz-2 well, using the surface facilities
that are being prepared at that site. The Sarikiz-2 site is expected
to become the hub for development of both the Alasehir and Sarikiz
oil fields. The total duration of production testing and well
completion is estimated to be 30 days.

An estimate of the total oil in place in the Alasehir field will be
made following the production test.

Might take a little time to start motoring as 30 days before news update?
cyril

Some solid buying taking place!

Yes some interest,with news imminent Ttraders taking position probably.lookimg +5p min myself?
cyril

XTR trying a breakout? Production news imminent??
cyril

Seller back in town,never mind managed to get some more at a knock down price? "hopefully"
cyril

http://www.investegate.co.uk/Article.aspx?id=200911160700085288C
cyril

From the "UPS" thread ............
XTR 2.40p
Reason: Buying is returning today after a large retracement. Able to buy just below middle price with a very positive Level 2 of 4 v 1

Chart and Indicators

from Proactive Investors:

Tuesday, December 01, 2009
Xtract Energy says Sakiriz-3 drilling to start before end of December -- by Sergei Balashov

Energy investor Xtract Energy PLC (AIM: XTR) says its 34% owned JV (joint venture) Extrem Energy is nearing production from the Sarikiz-2 well, while preparation for the drilling of Sarikiz-3 is almost complete with a spud date expected before the end of December.

The necessary logistical, permitting and commercial arrangements for production at Sarikiz-2 are complete after the conclusion of a work-over sequence with Extrem expecting to install a heating system within the next few days to enable natural flow to be established.

The company has temporary delivery arrangements with the Izmir refinery, which will receive early production from Sarikiz-2, based on natural flow until the end of Q1 2010, when full pumped volumes expected to be produced and delivered.

Preparation for the drilling of the Sarikiz-3 well, located 525 metres east of Sarikiz-2, is ongoing with a spud date expected to occur before the end of December. The well will be drilled to a total depth of 1,950 metres, targeting the Alasehir sandstones with the recoverable oil in place estimate at 5.75 mbbl (million barrels) based on an assumed 20% recovery factor.

The well cost is expected to be at about US$3.5 million and the drilling programme is planned on the basis of 45 days.

Each milestone passed is a first time for the company. The previous disappointment at Alasehir-1 reminded us not to take anything for granted in the oil exploration business, but investment prospects continue to look attractive at Alasehir and across the Extrem portfolio, said Chief Executive of Xtract Andy Morrison.

Extrem had to suspend testing work on the Alasehir-1 well early last month after encountering worse than expected conditions and eventually decided to drill a new well Sarikiz-3 on the Sarikiz part of the field instead of re-entering East Sarikiz-1, enabling the drilling rig to catch up time lost at Alasehir-1. The company is currently evaluating the possibility of undertaking a 3D seismic survey over the license area.


Shares in Xtract rallied 13% on the news this morning.


Extrem Energy is Xtracts exploration and production joint venture with Merty Energy of Turkey. Extrem Energy has a portfolio of licence interests including the high potential prospect at Candarli Bay in south-west Turkey. Xtract owns a 34% stake in Extrem, which holds 80% of the Alasehir license.

Xtract also owns 36.8 percent of Elko Energy Inc, a Canadian registered oil & gas exploration company which has interests in exploration and production licences in the Danish and Dutch North Sea. Its major asset is in the Danish North Sea: an 80 percent interest on 26 offshore blocks in a 5,400 square kilometres exploration and production licence close to the prolific Central Graben oil field. Elko also holds a 60 percent operating interest in gas-bearing license blocks P1 and P2 in the Dutch North Sea.

Zhibek Resources, 25 percent owned by Xtract, is an oil and gas exploration and production company with a 72 percent interest in the Tash Kumyr and Pishkoran exploration licences in the Kyrgyz Republic.

Xtract's wholly owned subsidiary Xtract Oil Ltd is focused on the development of the company's oil shale resources in Australia and the technology for oil extraction from oil shale resources. Xtract has oil shale exploration rights over mining tenement in the Julia Creek area of Queensland. In addition to evaluating third party technologies, XOL has been developing proprietary technology for the commercial extraction of liquid hydrocarbon products from oil shale.

Finally, Xtract Energy (Oil Shale) Morocco SA is a 70/30 joint venture with Alraed Ltd Investment Holding Company WLL, a company controlled by Prince Bandar Bin Mohammed Bin Abdulrahman Al-Saud of Saudi Arabia. XOSM has signed a Memorandum of Understanding with the Moroccan oil and mining ministry regatrding the evaluation and possible development of an oil shale deposit near Tarfaya.

The reasom for to rise.y has agreed to buy Oakville Capital's 13.2% stake in Elko Energy for $1.34m cash plus one new Xtract share for every Elko share.

The early-stage oil and gas investor's CEO, Andy Morrison, said, 'This further acquisition of Elko shares represents another step in the transformation of the company from a passive investor into one with more active involvement with its underlying assets.'

Following completion, Xtract's holding in Elko will be about 50.02%.
cyril

Patience rewarded once again,this has become a good long term investment and still time. aimho

XTRACT ENERGY PLC

Drilling update - Extrem Energy

Further to its announcement dated 2 March 2010, Xtract Energy Plc ("Xtract" or
"the Company") is pleased to provide the following update on the drilling
operations of its Turkish business, Extrem Energy AS ("Extrem Energy") in the
Alasehir licence area.

Drilling Update - Sarikiz-3

The Sarikiz-3 exploration well reached a total depth of 2,027m on 16 March
2010. Wire-line logging was completed on 20 March and 7" casing was completed
and cemented today, in preparation for cased-hole production tests.

During drilling, oil shows were recorded in the mud-logs at a number of
sandstone intervals in the depth range 1,340-1,970m and preliminary analysis of
the wire-line logs provides further indications of hydrocarbons at several
levels. Well pressures and other indicators are comparable with those
experienced previously at Sarikiz-2. Further analysis of the logs and other data
is planned for today and tomorrow in order to prepare the work-plan for
cased-hole production tests.

In view of the encouraging results from Sarikiz-3, Extrem Energy has decided to
keep the drilling rig on station there for the production test. Although this
will slightly delay the installation of the down-hole pump at Sarikiz-2, it will
save the time and cost of additional rig mobilizations.

Based on a 2 square km area and an assumed net productive pay thickness of 20m,
Extrem Energy's preliminary pre-drill P50 estimate of the recoverable oil in
place from the Sarikiz-3 well was 5.75mbbl, based on an assumed 20% recovery
factor. It is too early to make any updated projections.

Further updates will be provided as appropriate.

The information above relating to resource estimates has been provided using the
SPE standards and includes the following terms: "mbbl" (million barrels); "P50"
(mid-case scenario in relation to reserve expectations).

The above information has been reviewed and approved by Ongun Yoldemir, Managing
Director of Extrem Energy, who has a masters degree in geological engineering
and worked as an explorationist in the oil and gas sector in the Middle East,
Kazakhstan, Azerbaijan, and North Sea, has over 28 years' experience in the
resource and energy sector and is a member of the American Association of
Petroleum Geologists, European Association of Geologists and Engineers, the
Society of Exploration Geophysicists and several related Turkish institutions.

Xtract holds 50% of the equity of Extrem Energy through a wholly-owned
subsidiary.

Enquiries please contact:


Xtract Energy Andy Morrison, CEO +44 (0)20 3205 1148


Smith & Williamson David Jones +44 (0)20 7131 4000
Corporate Finance Azhic Basirov
Barrie Newton
About Xtract
Energy

Xtract identifies and invests in a diversified portfolio of early stage energy
sector technologies and businesses with significant growth potential. The
Company aims 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.

For further information on Xtract please visit www.xtractenergy.co.uk
< http://www.xtractenergy.co.uk/>

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.

Extrem Energy AS ("Extrem Energy")

Extrem Energy is an exploration and production joint venture with Merty Energy
of Turkey. The JV's aim is to create a new medium-sized oil and gas exploration
and production business, initially focused on Turkey where Merty Energy has
particular experience and expertise. Extrem Energy has a portfolio of licence
interests including the high potential prospect at Candarli Bay in south-west
Turkey. Xtract owns 50% of the issued share capital of Extrem Energy.

Elko Energy Inc. ("Elko")

Elko is a Canadian registered oil & gas exploration company which has interests
in exploration and production licences in the Danish and Dutch 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 and production licence close to the prolific Central
Graben oil field. Technical work indicates the potential for significant
reserves. Elko also holds a 60% operating interest in gas-bearing license blocks
P1 and P2 in the Dutch North Sea. Xtract owns approximately 50.0% of Elko's
issued share capital.

Zhibek Resources Ltd ("Zhibek Resources")

Zhibek Resources is an oil and gas exploration and production company which has
a 72% interest in the Tash Kumyr exploration licence in the Kyrgyz Republic.
Xtract has entered a farm-out agreement to fund a seismic and drilling programme
for 2008-10. 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 development of the
Company's oil shale resources in Australia and the technology for oil extraction
from oil shale resources. Xtract has oil shale exploration rights over mining
tenements in the Julia Creek area of Queensland. In addition to evaluating third
party technologies, XOL has been developing proprietary technology for the
commercial extraction of liquid hydrocarbon products from oil shale.

Xtract Energy (Oil Shale) Morocco SA ("XOSM")

XOSM is a joint venture with Alraed Limited Investment Holding Company WLL, a
company controlled by His Highness, Prince Bandar Bin Mohd. Bin Abdulrahman
Al-Saud of Saudi Arabia. XOSM has signed a Memorandum of Understanding with the
Office National des Hydrocarbures et des Mines 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.

cyril

This is a FREE EVENT
=================

The directors of Xtract Energy (AIM: XTR), Nighthawk Energy (AIM: HAWK), Lydian International (TSX: LYD) and Gulfsands Petroleum (AIM: GPX) will be presenting:

Wednesday the 2nd June 2010,
Chesterfield Mayfair Hotel, 35 Charles Street, Mayfair, W1J 5EB

The presentations will start at 6:00pm and finish at approx 8:00pm. After the presentations are complete the directors will also be available to take questions during a free canapand wine reception.

This event is suitable for the following:
Sophisticated & private investors, private client brokers, fund managers, financial institutions, hedge funds, buy & sell side analysts and journalists.

FREE registration : http://www.proactiveinvestors.co.uk/register/event_details/80

This is a superb lineup of exciting AIM listed oil companies, offering attendees the opportunity to meet the CEOs and chat informally after the official presentations over drinks and canap.

The location is a short walk from either Green Park or Bond Street tube stations.

Early applications are strongly advised, as this event is expected to reach capacity prior to the event due to high interest in the presenting companies.

XTR in Manchester 3/6/10!