Business
Elko Update
Elko Update.
About this update from Xtract Resources Plc
[{"type":"text","content":"\n \nRNS Number : 8442N Xtract Energy plc 08 September 2011 \n \n\n8 September 2011\n \nAIM: XTR\n \nXTRACT ENERGY PLC\n(\"Xtract\" or the \"Company\")\n \nElko Update\n \nXtract Energy Plc (\"Xtract\") notes below the Shareholder Update which was issued by Elko Energy Inc. (\"Elko\") to its shareholders on Wednesday, 7 September 2011:\n \nDear Shareholder,\n \n\"Elko Energy Inc. ('Elko') is pleased to provide this further business development update. \n \nDenmark\n \nElko announced on May 4, 2011, that the Luna well will be drilled by the 'Maersk Resolve' jack up drilling unit. The rig had been secured by Norwegian Energy Company ASA (\"Noreco\"), the license operator, under a letter of intent. At that time the rig was expected to be available in mid August 2011 and Elko subsequently announced on June 22, 2011 that the rig was anticipated to arrive at the Luna location in the second half of September 2011. Elko has been now advised by Noreco that the rig has been further delayed and the Luna spud date is now anticipated to be in early December 2011. The Maersk Resolve is currently drilling on contract to Maersk Oil and Gas in Denmark and as such the delays are out of the control of Noreco. \n \nAs previously announced, the 01/11 partners intend the 'Luna' well to test the overall Rotliegendes play concept. 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. \nIn 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 pi...