Business
Loan facility/Acquisitions
Loan facility/Acquisitions.
About this update from Xtract Resources Plc
[{"type":"text","content":"\n Xtract Energy plc\n04 October 2006\n\nXtract Energy plc ('Xtract' or 'the Company')\n\nLoan facility and Completion of Purchase of Investments\n\nThe Company announces that it has entered into a loan facility ('the Loan') with\nCambrian Mining Plc ('Cambrian') under the terms of which Cambrian has agreed to\nprovide a loan facility to Xtract for an amount of £2,000,000. The Loan shall\nbear interest at a rate of LIBOR plus 2% and is repayable on demand after 1\nMarch 2007, or prior to that date in the event Xtract undertakes a placing.\n\nAs Cambrian is a substantial shareholder of Xtract, the provision of the Loan by\nCambrian to Xtract is a related party transaction under the AIM Rules. The\ndirectors of Xtract, having consulted with the Company's nominated adviser,\nSmith & Williamson Corporate Finance Limited, consider that the terms of the\ntransaction are fair and reasonable insofar as its shareholders are concerned.\n\nThe Company also announces that it has now completed the purchase of 19.5% of\nWasabi Energy Limited, 18.6% of Aviva Corporation Limited and 28.2% of Cambrian\nOil & Gas Plc as described in detail in the announcement made by the Company on\n1 September 2006.\n\nThe completion of these purchases is an important step for Xtract resulting in a\nsignificant shareholding position in Cambrian Oil & Gas Plc and creates an\nexciting portfolio of energy assets.\n\nXtract is pleased to be the energy investment arm for the Cambrian Mining group\nand believes the portfolio has the potential for significant growth.\n\n4 October 2006\n\nEnquiries:\n\nXtract\nSue Wickerson 020 8466 0406\nDirector\n\nSmith & Williamson\nAzhic Basirov 020 7131 4000\nDavid Jones 020 7131 4000\n\nInformation on Cambrian Oil & Gas plc ('COIL')\n\nCOIL was formed in March 2004 and acquired its first oil and gas exploration and\nproduction assets in March 2005 when it was admitted to AIM; these are located\nin the Kyrgyz Republic. In July 2006, COIL agreed to invest up to £1.7 million\nin Methanol Australia Ltd., a gas-to-liquids business based in Australia which\nis quoted on the ASX market.\n\nInformation on Wasabi Energy Limited ('Wasabi')\n\nWasabi is quoted on the ASX market. Wasabi has an investment in Exergy Inc., a\nUS-based business which owns a technology for the generation of electricity from\ngeothermal and w...