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

Operational Update
RNS
RNS Number : 3612V
Xtract Energy plc
11 January 2012



11th January 2012



AIM: XTR



XTRACT ENERGY PLC

("Xtract" or the "Company")



Operational Update



Xtract Energy PLC is pleased to announce the following operational update ahead of drilling in the Netherlands and Denmark.



Netherlands



Xtract has recently been advised by Chevron that the Noble Byron Welliver is now on site at the P2-10 drilling location and the well has spudded. The rig move was delayed due to the weather conditions that prevailed throughout December 2011. The well program is expected to take up to 100 days.



The P2-10 appraisal well targets an existing gas discovery on the P2 block and one of the main objectives is to evaluate commercial hydrocarbon flow rates from an extended reach horizontal well within the Rotliegendes sandstone reservoir. Xtract has an overriding royalty arrangement of up to 5 per cent of sales value from Chevron and TAQA's share of gas delivered into the Dutch National Transmission System and condensate delivered onshore.



Denmark



As previously announced by Xtract, the Maersk Resolve is currently drilling on contract to Maersk Oil and Gas in Denmark. The Maersk Resolve has experienced similar weather conditions as the Byron Welliver over the last few weeks which has impacted their well activities. Noreco has advised that the revised release date by Maersk Oil and Gas of the Maersk Resolve drilling rig is 26th January 2012.



The rig move will require a suitable weather window to undertake the short tow to the Luna location and subsequent positioning for drilling operations. The move is therefore dependent on weather conditions prevailing at the time of the rig release by Maersk. Xtract will provide a further update once it has been advised by Noreco that the well has spudded. The Luna drilling program is expected to take approximately one month in duration.



Peter Moir, Chief Executive of Xtract Energy, commented:

"Despite the bad weather conditions in the North Sea over the last few weeks it is pleasing to know that the Noble Byron Welliver is now safely jacked up at the P2-10 well location and that drilling operations have commenced. We look forward to updating shareholders on progress in due course."



Qualified Person



In accordance with AIM Guidelines, Peter Moir, B.Sc. Civil Engineering, M.Eng. Petroleum Engineering, UK Chartered Engineer and CEO of Xtract Energy plc is the qualified person as defined in the Guidance Notes for Mining, Oil and Gas Companies, February 2010, of the London Stock Exchange, that has reviewed the technical information contained in this press release. Mr Moir has more than 30 years experience in technical, operational and commercial aspects of the E&P business.

Xtract confirms rig move after bad weather
StockMarketWire.com
Xtract Energy has recently been advised by Chevron that the Noble Byron Welliver is now on site at the P2-10 drilling location and the well has spudded.

The rig move was delayed due to the weather conditions that prevailed throughout December 2011. The well program is expected to take up to 100 days.

In Denmark, the Maersk Resolve has experienced similar weather conditions as the Byron Welliver over the last few weeks which has impacted their well activities. Noreco has advised that the revised release date by Maersk Oil and Gas of the Maersk Resolve drilling rig is 26th January 2012.

Peter Moir, Chief Executive of Xtract Energy, commented: "Despite the bad weather conditions in the North Sea over the last few weeks it is pleasing to know that the Noble Byron Welliver is now safely jacked up at the P2-10 well location and that drilling operations have commenced. We look forward to updating shareholders on progress in due course."

Xtract spuds Dutch well after weather-related delay
By Sarah Modlock | Wed, 11/01/2012 - 11:53

AIM-listed Xtract Energy (XTR) saw its shares dip on Wednesday as it updated investors on the latest activity at its P2-10 appraisal well in the Netherlands.

Following a delay in moving the rig because of bad weather, Xtract said it had been advised by Chevron (CVX) that the Noble Byron Welliver is now on site at the drilling location and the well has spudded. The programme is expected to take up to 100 days.

The well will target an existing gas discovery on the P2 block and one of the main objectives is to evaluate commercial hydrocarbon flow rates from an extended-reach horizontal well within the Rotliegendes sandstone reservoir.

Through its wholly-owned subsidiary, Xtract has an overriding royalty arrangement of up to 5% of sales value from Chevron and TAQA's share of gas delivered into the Dutch National Transmission System and condensate delivered onshore.

Meanwhile, in Denmark, the Maersk Resolve has experienced similar weather conditions as the Byron Welliver over the last few weeks, which has impacted its well activities. Noreco has advised that the revised release date by Maersk Oil and Gas of the Maersk Resolve drilling rig is 26 January.

"Despite the bad weather conditions in the North Sea over the last few weeks it is pleasing to know that the Noble Byron Welliver is now safely jacked up at the P2-10 well location and that drilling operations have commenced," commented Xtract’s chief executive Peter Moir

http://www.heraldsun.com.au/business/woodside-revenue-surges-on-back-of-strong-oil-price/story-fn7j19iv-1226248793427Shale News Down Under



Thanks to WCT275 6





Australia set to cash in on shale surge

AUSTRALIA is poised to cash in on booming global prices for shale oil and gas assets, according to new research.

Surging prices for assets in the US are turning companies with deposits elsewhere into targets, experts say, and Australia is likely to be a key beneficiary.

Shale properties owned by Adelaide-based Beach Energy can be bought for less than $170 a hectare, according to Bloomberg and financial services group DNB Markets.

By comparison, shale assets in Texas sold at $10,100 a hectare this year and a holding in Ohio and Pennsylvania changed hands at $6000 last month.

Energy companies are pursuing unconventional assets after Brent oil futures prices rose last year.

Mark Carnegie, former head of Lazard's Australian private equity business, said: "This could be the next big thing."

-BLOOMBERG

sp on the move, Luna spud next week ? and still waiting the J. creek shale update.

The rig should have been released around the 26th Jan, should be some news next week.




Denmark

As previously announced by Xtract, the Maersk Resolve is currently drilling on contract to Maersk Oil and Gas in Denmark. The Maersk Resolve (350' ILC) has experienced similar weather conditions as the Byron Welliver over the last few weeks which has impacted their well activities. Noreco has advised that the revised release date by Maersk Oil and Gas of the Maersk Resolve drilling rig is January 26, 2012.

The rig move will require a suitable weather window to undertake the short tow to the Luna location and subsequent positioning for drilling operations. The move is therefore dependent on weather conditions prevailing at the time of the rig release by Maersk. Xtract will provide a further update once it has been advised by Noreco that the well has spudded. The Luna drilling program is expected to take approximately one month in duration.

A short write up for any new investor looking at Xtract energy, thanks to tip top.



The important aspect of the Netherlands drill is they have already had five confirmed discoveries on these blocks. This hugely reduces the risk and hence the COS for further drilling of 40-70%, a near cert in the oil world. There is anything from 300-750bcf up for grabs if this play can be proved up. Xtract hold a 5% overriding royalty, which is a great deal as Chevron pay all the bills and harbour all risk while Xtract have access to 5% of the pure profit. XTR would not have the capacity to drill this acreage on its own so to be tied to a major like Chevron is an exceptional deal. This drill will not make you rich over night but it does provide the company with a huge underpin and promises positive cash flow for years to come. Chevron have spudded this well and are currently drilling ahead.

If you are looking for vast returns on your money then the Danish drill, which Xtract (33%) are partnered with Noreco (47%), will provide that upside. The risks are obviously greater but if they can prove up this acerage then we could be looking at resources of 1 billion boe for that play. That would provide Xtract access to circa 300m boe and be a company changer. The Maersk Resolve is currently ready to tow to the drill site to begin the drilling of this very exciting well. With such huge upside this drill will attract massive attention from the oil industry, providing Xtract with some kudos amongst investors and II's alike. This drill only has a duration of approx 1 month so not long to wait, assuming all goes to plan. So investors will begin taking strong positions in this company over the coming weeks.

Xtract are also awaiting a report from Worley Parsons on the best way in which to exploit their 2.2 billion barrel jorc acreage at Julia creek. Very EXCITING weeks ahead!

Looks like the Luna spud is not far away now.


http://www.foga.dk/en/tekster/noreco

Good purchasing pre Luna spud RNS.

Looks like the seller has gone. Should be a good day.

Operational Update
RNS
RNS Number : 2640X
Xtract Energy plc
13 February 2012



13th February 2012



AIM: XTR



XTRACT ENERGY PLC

("Xtract" or the "Company")



Operational Update



Xtract Energy PLC is pleased to announce the following operational update.





Denmark



The Maersk Resolve drilling rig has arrived at the Luna location, jacked up out of the water and made ready for drilling operations. Noreco has advised that the well was spudded on Sunday 12th February.



The Luna well will be drilled to a depth of 2,250 metres with a reservoir sandstone thickness prognosis of c. 90m. The Luna prospect is targeting between 35mmbbls - 153mmbbls net resources to Xtract. The Luna drilling program is expected to take approximately one month.



The Luna prospect is located in a small half graben with the pinch out edge to the south east of the structure. The Rotliegendes reservoir is thought to have a high probability of being present at this location based on the seismic interpretation. Uncertainty still exists however on which seismic event represents the top reservoir and where the pinch out occurs. In addition to the uncertainty on the pinch out position, there is a possibility that the Rotliegendes does not, in fact, pinch out but continues up dip into Lead A. It is therefore possible that Luna and Lead A are connected and represent one feature. The current well location which targets the Luna prospect was picked in order to maximize the information gathered by the well and is designed to address this uncertainty. The Luna well intends to test the overall Rotliegendes play concept.



A full description of the prospectivity of the Danish licenses 1/11 and 2/05 can be found within the Xtract Energy plc AIM Admission Document dated 26th August 2011 which can be located on the Xtract website www.xtractenergy.co.uk.





Oil Shale



Xtract previously announced that it had contracted Worley Parsons to provide a technical study on the various technologies which are being used or developed around the world to extract hydrocarbons from oil shale, as applicable for the exploitation of the Julia Creek tenements in Queensland, Australia and other oil shale resources. Worley Parsons is an Australian based company and is a leading provider of professional services to resource and energy sector companies and complex process industries



Xtract is now in receipt of the study and is reviewing the results. The study will assist Xtract to review the commercial options available for the exploitation of it's oil shale resources, to make such developments attractive to potential commercial partners, as well as creating a bankable project.





Peter Moir, Chief Executive of Xtract Energy, commented:

"We are pleased that the Maersk Resolve is now on location and it is exciting that drilling has commenced at Luna. We look forward to updating shareholders on progress in due course."



Qualified Person



In accordance with AIM Guidelines, Peter Moir, B.Sc. Civil Engineering, M.Eng. Petroleum Engineering, UK Chartered Engineer and CEO of Xtract Energy plc is the qualified person as defined in the Guidance Notes for Mining, Oil and Gas Companies, February 2010, of the London Stock Exchange, that has reviewed the technical information contained in this press release. Mr Moir has more than 30 years experience in technical, operational and commercial aspects of the E&P business.

Heavy selling, again rns then selling.

I wanted to have a look at the chances of success for the drill and see cold comfort 6 on ii has saved me the job -





Some decent volume today, as you might expect - but a fairly static share price. It will be interesting to see what happens over the next month as LUNA approaches target depth - volatility is probably the only thing we can predict with any certainty.

The "28% chance of strong technical success" predictions by TRACS are well worth a look for anyone who hasn't read them. See
http://tinyurl.com/TRACSDENMARK

Interestingly TRACS assess the key risk as charge. Whereas Noreco assess the key risk as Trap and put the chance of success some 40% higher than TRACS. I've stated my speculation before - but it might be worth restating, Noreco's drilling success rates suggest they may be using seabed sniffing tech to verify prospects. If they had used such tech before farming into this prospect it would explain why they have a higher chance of success and more specifically, why they put trap as the key risk. It is also worth noting that TRACS were instructed by Elko not Noreco and so would not have had access to any such data. It is, of course, purely speculation, but if Noreco are correct then it would mean that the chance of strong technical success could be as high as 42%. Given the prize at stake, that's phenomenally high, but remember it would mean 58% chance of weak technical success or failure. So it would be rather pleasant to de-risk the drill with some good news from Chevron...

I would love to think that we'll get some news out of Chevron prior to the 100 days production test - even if it's just to confirm they have gas shows and will commence production testing. If they do announce that, it could happen soon, because they've been drilling now for a decent length of time. But there's a decent chance Chevron won't make any announcements until they've completed the production test - in which case we could be waiting 'til April. Keen to hear any views.

Then there's Julia Creek. Anna Bligh has committed to the 24th march so not long to wait now for the state elections. I still think we'll hear nothing on Julia Creek until after the elections, but I'm hopeful that things could move quite quickly if the LNP win. And they still look set to win - an online poll by "the australian" shows 87% of readers expect the LNP to win.
http://www.theaustralian.com.au/national-affairs/elections/state/qld-election-2012
So I'm looking forward to an early announcement that Xtr is actively seeking an investment partner etc.

Re the other legs - Turkey (and Candarli Bay) and Zhibek - I'm not hopeful of any news in the next few months, so focus will be hugely on Noreco and Chevron.

The combined odds are in Xtr's favour - but anything can happen. The only thing for certain is that days like today - with high volume but low price volatility, will become increasingly rare as Luna approaches target depth...

good luck all
cc
anks to cold comfort -

Cenkos is a fan of Xtract Energy, 0.02p dearer at 2.28p. Analyst Ashley Kelty’s target price is 6p for a company which has been transformed from an investment concern into an operating company concentrating on exploration in the Netherlands.
It has just commenced drilling of a high impact exploration well offshore Denmark which could prove transformational in the event of success.
It is debt free and has a strong balance sheet.


Read more: http://www.thisismoney.co.uk/money/markets/article-2100615/MARKET-REPORT-Six-profit-warnings-year-leaves-Carpetrights-share-price-threadbare.html#ixzz1mIrZLthb

http://www.derrickpetroleum.com/2012/02/14/xtract-energy-review-options-for-julia-creek-oil-shale-project/

2.075p ( 2.05 / 2.10p )

Moving higher on a strong level 2 of 2 v 1 and not able to buy online on size on the small spread
edit - now 3 at bid

spread 2.05 / 2.15p +0.075p

Have for some time trying to move higher but sellers have come as the price appreciated, now is trying to move up again

gone up on the offer and strong on the bid side

level 2 of 5 v 2

Just now someone paid 2.24p for 354K a very large premium for a very large trade

NMS is 100K

http://www.moneyam.com/action/news/showArticle?id=4319652

http://hugin.info/138447/R/1589828/499354.pdf