Xtract Energy Plc Final results

Xtract Energy Plc announces its final results for the year ended 31 December 2011.

Financial Highlights

• Net loss of £4.31m (six month period ended 31 December 2010: £1.39m loss)
• Net cash of £4.49m (six month period ended 31 December 2010: £8.77m)
• Net assets of £8.37m (six month period ended 31 December 2010: £8.33 m)

Operational Highlights

• Acquisition of the remaining Elko Energy Inc share capital satisfied by the issuance of 350,245,343 new ordinary shares in Xtract
• Completion of sale of Xtract’s 50% holding in Extrem Energy AS
• Placing of 240,000,000 shares at a price of 1.25p each to raise £3,000,000 before expenses
• Equity Line Facility established for a maximum of £12,500,000.
• Luna well spudded in Denmark by Noreco on 12 February 2012 – no hydrocarbons encountered and well was plugged and abandoned
• P2-10 well spudded in Netherlands by Chevron in January 2012 – drilling results expected summer 2012
• Extrem Energy AS – Contractual agreement signed between Xtract, Merty, Extrem and the Yoldemir family whereby Xtract has disposed of its 50% holding in Extrem Energy AS
• Worley Parsons provide a technical study on various oil shale extraction techniques
• Major board strengthening including the appointment of Dr. George Watkins appointed as Non-Executive Chairman

Post period end event

• Signed agreements with Santos providing the basis for Santos and Xtract to pursue an exit from their jointly owned Zhibek Resources Ltd and their indirect interest in KNG Hydrocarbons
• Xtract has received a 10.5% (approximately) holding in ASX-listed Caspian Oil & Gas Ltd from Santos
• Allows previously committed funds to be diverted to other investment opportunities

Peter Moir, Chief Executive of Xtract commented: “2011 has been a year of significant change for the Company. We successfully completed a re-admission to AIM, changing from an investment company to an operating company following the acquisition of the outstanding shares in Elko Energy Inc. which we did not already own. We also disposed of our interest in Extrem Energy AS for a royalty agreement. While we are optimistic for the outcome of the Chevron well in the Netherlands, we believe that maximising the probability of exploration success requires a portfolio approach that includes a range of prospects with different risk profiles across a spread of acreage. As such, we will continue to seek new and exciting opportunities and the Board continues to look to the future with confidence.”