Business
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New Investments.
About this update from Xtract Resources Plc
[{"type":"text","content":"\n Xtract Energy plc\n01 September 2006\n\n\n1 September 2006\n\n\n XTRACT ENERGY PLC\n ('Xtract' or the 'Company')\n\n Purchase of investments by Xtract\n\n\nXtract announces that it has agreed to acquire substantial shareholdings in\nCambrian Oil & Gas plc ('COIL'), Wasabi Energy Limited ('Wasabi') and Aviva\nCorporation Limited ('Aviva') from Cambrian Mining plc ('Cambrian') and\nCambrian's wholly owned subsidiaries Deepgreen Minerals Corporation Limited and\nCambrian Investment Holdings Limited. The total consideration payable (which is\nbased on the closing market values as at 30 August 2006 of the shares being\nacquired, all of which are quoted) for these investments is approximately £3.8\nmillion which is being satisfied by the issue to the respective sellers of\nconvertible unsecured loan notes totalling approximately £3.3 million (the 'Loan\nNotes') and a payment of £450,000 in cash to Cambrian.\n\nInformation on 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\nAs at 31 December 2005, COIL's net assets were £3.8 million and its loss before\ntax for the six months then ended was £0.3 million. COIL raised £1.5 million in\na placing in July 2006 and its current market capitalisation is £4.7 million.\n\nXtract is to acquire 44,630,769 ordinary shares in COIL (representing 28.2% of\nCOIL's issued ordinary share capital) and warrants over an additional 22,844,994\nordinary shares (15,000,000 exercisable at 3p per share and 7,844,994\nexercisable at 7p per share) for a total consideration of approximately £1.3\nmillion (approximately £0.9 million in Loan Notes and £450,000 in cash).\n\nInformation on 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 waste heat. Wasabi also has interests in a Canadian coal mining\nproject at Lillyburt, two uranium exploration licences in Australia and an\nAustralian company specialising in developing bio diesel production plants and\nin m...