Business
Project Update
Project Update.
About this update from Xtract Resources Plc
[{"type":"text","content":"\n \n\n\n\n11 December 2008\n\nAIM: XTR\n\n XTRACT ENERGY PLC\n (\"Xtract\" or the \"Company\")\n\n PROJECT UPDATE - OIL SHALE\n\nFurther to the commentary provided in its recent annual report,\nXtract gives the following update on the development of its oil shale\nprojects.\n\nQueensland, Australia\n\nIn August 2008, the Queensland Premier announced a 20-year moratorium\non a proposed oil shale development in the Whitsunday coastal region,\nand a 2-year review period for oil shale developments throughout the\nstate during which no new mining activity would be permitted.\nAlthough the mineral rights of Xtract's 100% subsidiary Xtract Oil\nLtd (\"XOL\") in Queensland were not affected, the review has created\nuncertainty over the extraction of the underlying oil shale.\n\nXOL recently held a meeting with representatives of the Queensland\ngovernment to present the progress of XOL's technology and to\nunderstand the proposed review process. Whilst response to the\ntechnical progress was encouraging, the government representatives\nwere not able to give much further information about the review\nprocess or its likely impact.\n\nUnder these circumstances, Xtract has taken the decision to scale\nback significantly its projected investment in the development of oil\nshale technology. The net investment by XOL in the current financial\nyear is now estimated to be A$0.9m, the majority of which has already\nbeen committed.\n\nAs a result of this decision, the project enters a 'hibernation'\nphase until conditions improve sufficiently to attract further\ninvestment. XOL intends to maintain its mineral rights over its 2.12\nbillion barrels of indicated and inferred resources.\n\nMorocco, New Zealand and Egypt\n\nOn 19 September, Xtract announced the creation of a joint venture\ncompany in Morocco, Xtract Energy (Oil Shale) Morocco S.A. (\"XOSM\"),\nfor the evaluation and possible development of an oil shale deposit\nnear Tarfaya, in the south west of the country. A decision as to\nwhether to conduct an initial pre-feasibility study is pending. An\nearly stage project in the Nevis Valley in New Zealand is on hold and\ndiscussions about participation in Egypt have been discontinued.\n\nCommenting on the developments, Andy Morrison, CEO of Xtract said,\n\"The world has continued to change since we issued our annual report,\nand we believe tha...