XTRACT ENERGY ---- XTR

[1waving]

One to look out for --

 

Very positive production testing in today's announcement from the Sarikiz area, with even greater expectations from other projects , Candarli Bay in Turkey being one.

 

 

6 July 2009

 

AIM: XTR

 

XTRACT ENERGY PLC

('Xtract' or the 'Company')

 

DRILLING UPDATE - Extrem Energy

 

Further to the announcement made on 1 July 2009, Xtract Energy Plc

('Xtract') is pleased to provide the following update on the progress

of the production test being carried out at Sarikiz-2 by its Turkish

joint venture Extrem Energy A.S. ('Extrem Energy').

 

Following the test of the interval at 1728-1733m which was found to

produce associated carbon dioxide, further technical interpretation

was carried out. This revealed the existence of a minor fault which

was causing carbon dioxide from deep levels to penetrate the deeper

oil reservoirs. The fault did not appear to extend further upwards.

The new interpretation has been validated by the test of the interval

between 1710-1715m which was completed on 6 July 2009. After recovery

of the drilling fluids, the production test flowed oil without

associated carbon dioxide. Initial indications are that a pumped oil

flow rate of approximately 180bbl/day could be achieved from that

interval alone.

 

With the benefit of the new interpretation, the number of intervals

still to test has been increased to eight, representing a further

57.5m of reservoir thickness compared with 6.5m of thickness in the

interval just tested. The remaining sandstone intervals lie in a

structure between the depth range 1483m to 1697m.

 

Log indications are favourable for the remaining intervals but the

ability to produce from them will remain unknown until they are

tested. At this time, it is reasonable to expect that the total

production flow rate from the well will meet or exceed the pre-drill

estimate of 500bbl/day.

 

Further progress updates will be provided as appropriate.

 

All operations are controlled and operated by Merty Energy, Xtract's

joint venture partner in Extrem Energy.

 

Xtract holds 27% of Extrem Energy and has the option of increasing

its shareholding to 34% by contributing a further investment of

US$1.75m before 5 August 2009.

 

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.

---------------------------

 

 

Would now expect XTR to take up that additional 7% in Extrem Energy.

 

 

http://www.xtractenergy.co.uk/

 

 

[1waving]

Commercial production from Sarikiz following latest tests at Sarikiz-2 well.

 

Further 3 commercially producing levels announced at the Sarikiz-2 well. Still have 3 further levels to test then production to start.

 

Oilfield to be developed from the Sarikiz-1 well and a new appraisal and production well to be drilled this year. Very good news indeed :--

 

 

17 July 2009

 

AIM: XTR

 

XTRACT ENERGY PLC

("Xtract" or the "Company")

 

DRILLING UPDATE - Extrem Energy

 

Further to the announcement made on 6 July 2009, Xtract Energy Plc

("Xtract") is pleased to provide the following update on the progress

of the production test being carried out at Sarikiz-2 by its Turkish

joint venture Extrem Energy A.S. ("Extrem Energy").

 

Following the successful production test of the interval between

1710-1715m which indicated an oil flow rate of approximately 180

bbl/day, further successful production tests have been completed on

three additional intervals, 1646-1650m, 1652-1657m and

1559.5-1561.5m.

 

Three shallower sandstone intervals between 1483m and 1549m,

representing 24m of reservoir thickness, remain untested. The

interval between 1544-1549m is expected to be perforated and tested

today with results becoming available over the weekend. Following

this next test a decision will be taken as to which intervals will be

used to form the basis of the initial production from the Sarikiz

field. Once these intervals have been selected, they will be opened

so as to provide combined flow. The initial commercial oil production

is expected to meet or exceed the pre-drill estimate of 500 bbl/day.

 

Extrem Energy now regards the well as commercial and is proceeding to

the design and construction of the surface facilities to establish

regular oil treatment and sales.

 

With the benefit of the knowledge gained from Sarikiz-2, Extrem

Energy is now planning the development of the whole field. It is

intended that a further appraisal and production well will be drilled

on the field during 2009 and that production will be increased by

re-entering the abandoned East Sarikiz-1 well which was drilled and

left cased in 2001 by the previous licence-holder. Comparison of the

drilling logs from East Sarikiz-1 indicates the presence of similar

oil-bearing sandstone layers as at Sarikiz-2. These layers were not

tested at the time because the focus then was on a deeper target. The

possibility of these two additional producing wells, together with

the application of production enhancements at Sarikiz-2, gives

confidence that Extrem Energy will be able to grow production levels.

 

Further progress updates will be provided as appropriate.

 

All operations are controlled and operated by Merty Energy, Xtract's

joint venture partner in Extrem Energy.

 

--------------

 

[1waving]

Production shortly:--

 

 

3 August 2009

XTRACT ENERGY PLC

("Xtract" or the "Company")

 

INVESTMENT UPDATE - Extrem Energy

 

Further to the announcement made on 17 July 2009, Xtract Energy Plc

("Xtract") is pleased to announce that the production test was

completed on 30 July 2009 and that the Sarikiz-2 well at Xtract's

Turkish joint venture Extrem Energy A.S. ("Extrem Energy") is being

shut in as a production well with commercial production expected to

commence in October. The rig is now being moved to the site of the

former East Sarikiz-1 well and will test the horizons from which

commercial production is expected. If successful Extrem Energy will

have two commercial wells on stream in the fourth quarter.

 

The results of the production test at Sarikiz-2 indicated a

theoretical production potential of 690 bbl/day from the tested zones

and a potential of up to 450 bbl/day more from untested zones. Not

all levels can in practice be produced at once due to production

techniques. Four levels have been selected for initial production.

After the results of testing, Extrem Energy has decided to apply an

optimised value of initial 350 bbl/day of production in order to

maximise the field life and the amount of recoverable oil through

time.

 

The pressure and other logging data from the production test will now

be processed, which will enable an improved estimate of field size.

This will be combined with the results of a recently completed

geochemical survey over the wider field area. The information will be

used for field development and the site selection for follow-on

wells. The process for registering Sarikiz-2 as a discovery well is

already under way with the Turkish authorities and the well results

will be used to generate the applicable reserve categorisation.

 

Further updates will be provided as appropriate.

 

In addition to progress at Sarikiz, Extrem Energy continues to

advance its interests in other licence areas. A short additional

programme of seismic acquisition over the Edirne licence in the

Thrace Basin in western Turkey was commenced in the second half of

July. As at 30 July 2009, the 75.76km project was 40% completed. The

results will be used to firm up drilling targets in this

predominantly gas-bearing region. A geochemical study on

Adana-Siraseki licence has also been completed and sent for

analysis.

 

All operations are controlled and operated by Merty Energy, Xtract's

joint venture partner in Extrem Energy.

-------------------------------

 

 

 

[1waving]

Xtract increases stake to 34% in Extrem Energy:--

 

 

 

5th July

 

Xtract pays $1.75m for 34% of Turkish well

Business Financial Newswire

 

Xtract Energy says that is has paid $1.75m to Extrem Energy following the successful production test at the Sarikiz-2 well in Turkey.

 

Xtract now owns 34% of the joint venture.

 

The subscription money will be used by Extrem Energy to finance forthcoming operations, including the re-entry of East Sarikiz-1 which is expected to begin this month.

--------------------------

 

 

 

[1waving]

Oil in place increased strongly ---- three further expected production wells by December.

 

 

 

27 August 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 and development plans at its Turkish joint venture Extrem Energy A.S. ("Extrem Energy").

 

Alasehir/Sarikiz Licence (Extrem Energy 80%)

 

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.

 

Siraseki Licence (Extrem Energy 100%)

 

The results from seismic and GORE geochemical surveys over the Siraseki licence area near the Syrian border have now been processed

and have given rise to a new prospect called Menekselik. The sandstone structure is a fault bounded anticline with an estimated area of 11.2 square km and an expected pay thickness of 30m. If the structure contains natural gas, the recoverable gas in place is estimated to be 94 bcf using a 70% recovery factor. Extrem Energy intends to drill the prospect in early 2010 following completion of Sarikiz-3.

 

Edirne Licence (Extrem Energy 100%)

 

The additional seismic programme mentioned in the announcement of 3 August was completed on 9 August. The acquisition of GORE geochemical data commenced on 19 August and is ongoing. The seismic and geochemical data will be analysed together to identify drilling

targets in this gas-bearing zone. If successful, these targets will be drill-ready by early 2010. The area is close to existing downstream infrastructure, so production can be established quickly in the event of success.

 

Extrem Energy is also working on plans to appraise and exploit its off-shore licences in Candarli Bay and the Sea of Marmara.

 

All operations are controlled and operated by Merty Energy, Xtract's joint venture partner in Extrem Energy. Xtract holds 34% of Extrem

Energy.

 

------------------------------------

 

 

[1waving]

Xtract shows confidence in their Turkish JV with Merty, Extrem Energy, increasing it's stake from 34% to 50% :--

 

12 February 2010

AIM: XTR

XTRACT ENERGY PLC

 

Investment update - Extrem Energy

 

 

Xtract Energy Plc ("Xtract" or "the Company") is pleased to announce that on 11 February 2010 it entered into a further agreement with its Turkish partners Merty Energy ("Merty"). Under the terms of the agreement, Xtract will acquire from Merty a further 16% of the issued capital of its Turkish associate company Extrem Energy A.S. ("Extrem"), taking Xtract's overall share of the business to exactly 50%, with the other 50% held by Merty shareholders.

 

Consideration for the transfer is staged payments by Xtract of US$4.9 million to Merty, which will apply US$0.9 million of the consideration to subscribe for 30 million new ordinary shares in Xtract. In addition, Xtract and Merty have each agreed to contribute a further US$2.0 million to Extrem to fund the ongoing work programme through to the drilling of an exploration well on the Siraseki licence area during the second quarter of 2010. Application will be made for the new Xtract ordinary shares to be admitted to trading on AIM and this is expected to become effective on 18 February 2010.

 

Further details about the proposed exploration well on the Siraseki licence area will be provided shortly, along with an operational update on production and drilling activities in the Sarikiz field and further information about the strategy for the exploitation of other licences within the Extrem portfolio.

 

Commenting on the transaction, Andy Morrison, CEO of Xtract said, "The notable increase of our shareholding in Extrem demonstrates the confidence of the Board in the prospects for Extrem and for its significant licence portfolio in Turkey. The acquisition establishes joint control and represents another important step in the transformation of the company from a passive investor into one with more active involvement with its underlying assets".

_________________________________

 

Forthcoming update on production, drilling and strategy in Turkey will be more than welcome now that production is under way.

 

[1waving]

RNS --- Sarikiz-3 a duster

 

"The production test at Sarikiz-3 did not encounter hydrocarbons in recoverable quantities and Extrem Energy does not consider the well to be commercial. Further evidence of a working hydrocarbon system in the basin was gained, and the well results will be combined with recently completed additional seismic to help determine how best to continue the exploration of the licence area. Further updates will be provided as appropriate."

 

 

http://www.londonstockexchange.com/exchang...mentId=10471128

 

 

Despite having what appears to be a good set of assets, prolonged delays all round and today's failure questions management's strategy and abilities. Brings them under fire - deservedly.

 

Presenting at the Proactive Investors forum in London then Manchester in early June. Management may come in for harsh criticism at the forum unless they can pull something off before then. ----

 

Suppose they could delay their presentation until the next forum though. ---