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COIL placing
COIL placing.
About this update from Xtract Resources Plc
[{"type":"text","content":"\n Xtract Energy plc\n12 October 2006\n\n XTRACT ENERGY PLC\n\n12 October 2006\n\nXtract Energy Plc ('Xtract') would like to refer shareholders to the following\npress release announced today by Cambrian Oil & Gas plc. Xtract currently holds\n28.21% of the issued capital of Cambrian Oil & Gas plc.\n\n\n Cambrian Oil and Gas plc\n Acquisition of Elko Energy Inc Warrants\n Placing of new Ordinary Shares\n\n12 October 2006\n\nAcquisition of Elko Energy Inc\n\nThe Directors of Cambrian Oil and Gas plc ('COIL' or the 'Company') are pleased\nto announce the purchase of 15,000,000 special warrants of Elko Energy Inc\n('Elko') from Cambrian Mining Plc ('Cambrian'). The Company previously owned\n2,500,000 special warrants of Elko and the enlarged holding represents 29%\n(fully diluted) of the issued capital of Elko. Each special warrant converts\ninto 1 common share in the capital of Elko at any time for no further\nconsideration and if they have not been converted by 4 November 2006 then they\nshall be deemed to have been converted into common shares in the capital of Elko\nat that date.\n\nCOIL is purchasing the special warrants for a total cash consideration of\n£1,544,993.\n\nAbout Elko\n\nElko, an oil and gas exploration company, has been awarded a 5,400 square\nkilometre exploration and production licence in the Danish North Sea Sector,\nwhich it holds with an 80% interest. The remaining 20% is held by the Danish\nState, which has a direct interest with a full working interest. Elko is an\napproved offshore operator and has set up a Danish subsidiary to carry out the\nrequired work programme. Phase I of the technical studies has been completed,\nconfirming the substantial reserves potential of the licence area. Following\nfurther ongoing technical work it is planned to farm down Elko's interest during\n2007 in exchange for future seismic and drilling obligations being paid for by a\nnew partner.\n\nIn December 2005, Elko made a strategic investment of $2.3 million Canadian, and\ncurrently owns approximately 40% of Dragon Energy Inc., a private Canadian\ncompany with a significant development project in Gansu Province, China\n('Dragon'). Dragon has signed a Joint Venture Agreement with a provincial\nsubsidiary of CNPC of China, the 10th largest oil company worldwide, providing\nfor the re-development of the Maling Oilfield ...