Xtract Energy plc
04 October 2006
Xtract Energy plc ('Xtract' or 'the Company')
Loan facility and Completion of Purchase of Investments
The Company announces that it has entered into a loan facility ('the Loan') with
Cambrian Mining Plc ('Cambrian') under the terms of which Cambrian has agreed to
provide a loan facility to Xtract for an amount of £2,000,000. The Loan shall
bear interest at a rate of LIBOR plus 2% and is repayable on demand after 1
March 2007, or prior to that date in the event Xtract undertakes a placing.
As Cambrian is a substantial shareholder of Xtract, the provision of the Loan by
Cambrian to Xtract is a related party transaction under the AIM Rules. The
directors of Xtract, having consulted with the Company's nominated adviser,
Smith & Williamson Corporate Finance Limited, consider that the terms of the
transaction are fair and reasonable insofar as its shareholders are concerned.
The Company also announces that it has now completed the purchase of 19.5% of
Wasabi Energy Limited, 18.6% of Aviva Corporation Limited and 28.2% of Cambrian
Oil & Gas Plc as described in detail in the announcement made by the Company on
1 September 2006.
The completion of these purchases is an important step for Xtract resulting in a
significant shareholding position in Cambrian Oil & Gas Plc and creates an
exciting portfolio of energy assets.
Xtract is pleased to be the energy investment arm for the Cambrian Mining group
and believes the portfolio has the potential for significant growth.
4 October 2006
Enquiries:
Xtract
Sue Wickerson 020 8466 0406
Director
Smith & Williamson
Azhic Basirov 020 7131 4000
David Jones 020 7131 4000
Information on Cambrian Oil & Gas plc ('COIL')
COIL was formed in March 2004 and acquired its first oil and gas exploration and
production assets in March 2005 when it was admitted to AIM; these are located
in the Kyrgyz Republic. In July 2006, COIL agreed to invest up to £1.7 million
in Methanol Australia Ltd., a gas-to-liquids business based in Australia which
is quoted on the ASX market.
Information on Wasabi Energy Limited ('Wasabi')
Wasabi is quoted on the ASX market. Wasabi has an investment in Exergy Inc., a
US-based business which owns a technology for the generation of electricity from
geothermal and waste heat. Wasabi also has interests in a Canadian coal mining
project at Lillyburt, two uranium exploration licences in Australia and an
Australian company specialising in developing bio diesel production plants and
in marketing the fuel.
Information on Aviva Corporation Limited ('Aviva')
Aviva is quoted on the ASX market. Aviva's main business is an iron, coal and
cogeneration project in Western Australia.
This information is provided by RNS
The company news service from the London Stock Exchange