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

Friday's commentary on UK-AnaIyst.com

Friday, 10 July, 2009 2:59 PM

An extract from the diaries of infamous bear raider Evil Knievil

In the cold light of Tuesday morning I noted the production news from Xtract (XTR) in Turkey. Why the shares are still so subdued is very strange - other than on the very probable general explanation that the punters just lack courage. Turkey, now going straight into production and/or financing of expansion drilling, is worth 10p per share - and of course all the rest of Xtract is in for free. After hours yesterday it was announced that a non-exec of Xtract had bought 650,000 at 3.5p. So yet another buying opportunity presents itself for those who do not even have to sit through the tedium of board meetings.

Futher news out today,SP responding positively so far?
cyril

We've now hit 4p,if we can hold and the news is as suggested or better,then 6p could be on the horizon(can live in hope)?
cyril

What's the odds of hitting 6

Depends on whose bowling? lol
cyril

Do you think Xtract will hit 6 before any of the England batters will in the next test

http://www.stockopedia.co.uk/news/announcement/EEE/090324eee3766p.htm

Tescoma, you obviously havn't grasped the way that BB's work. This is the XTR thread. I have seen many ramps by you in the last few days, all of them for crap stocks and none on the right BB.

Looks like i posted on the old thread,todays RNS has resulted in XTR breaking through 4p, up over 20%.
cyril

Climbing nicely!

Western Canadian Coal Announces

Xtract Energy Operations Update




Vancouver, B.C. August 28, 2009 - Western Canadian Coal Corp (TSX: WTN, WTN.WT and WTN.DB and AIM: WTN) ('Western' or 'Company'), which owns a 45% interest in Xtract Energy Plc ('Xtract') (AIM: XTR), is pleased to announce an update on Xtract's oil and gas interests in Turkey.




Xtract has a 34% interest in Turkish joint venture Extrem Energy A.S. ('Extrem'). Extrem has now completed analysis on oil production test data from Sarikiz-2, together with other well, seismic and geochemical data to arrive at estimated recoverable oil from the field of 74 million barrels. As part of the field development plan, a three well production drilling program is due to commence in September and extend through to the end of December.




Furthermore, geochemical surveys over Extrem's Siraseki licence, located near the Syrian border, indicate the existence of a structure with the potential to recover 94 billion cubic feet of natural gas. Drilling in this licence area is expected to commence in early 2010.

The information disclosed by Extrem in relation to resource estimates has been provided using SPE standards and reviewed and approved by Ongun Yoldemir, Managing Director of Extrem Energy, who has a masters degree in geological engineering and over 28 years experience in the resource and energy sector.




About Xtract

Xtract identifies and invests in a diversified portfolio of early stage energy sector technologies. The portfolio of assets includes 34% interest in Extrem Energy AS, which is a joint venture with oil licences in Turkey; 35% interest in Elko Energy Inc, which has oil and gas licences in the Danish and dutch North Sea; 25% interest in Zhibek Resources Ltd, which has oil and gas interests in the Kyrgyz Republic; 70% interest in a joint venture Xtract Oil Morocco SA, which has the rights to explore and develop an oil shale deposit in Morocco; and 13% interest in Wasabi Energy Ltd, which is a diversified investor in traditional and renewable energy technologies. Further information can be found at www.xtractenergy.co.uk.




About Western

Western is a producer of high quality metallurgical and thermal coal from mines located in northeast British Columbia (Canada) and West Virginia (USA). The mines have the capacity to produce 7 million tonnes per year and have over 20 years of coal reserves. Western also owns a 50.6% interest Energybuild (EBG: AIM) which produces high quality anthracite and thermal coals in South Wales (UK). Other interests owned include a 45% interest in Xtract Energy (XTR: AIM), 20% interest in NEMI Northern Energy & Mining (NNE.A: TSX) and 100% of a small gold and antimony operation in Australia. The Company is headquartered in Vancouver, BC, Canada, and trades on the AIM and TSX stock exchanges under the symbol 'WTN'. More information can be found at www.westerncanadiancoal.com
cyril

From Xtracts's website:

September 03, 2009
Oilbarrell.com
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...

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