Cambrian has purchased the 110,000,000 ordinary shares on a 1-for-25 share exchange basis, resulting in the issue of 4,400,000 new ordinary shares in Cambrian. As at the close of business on August 4, 2006, this represents a price of 5.9p per Xtract Energy share--a premium of 14.6% to the previous 10-day average closing price.
"We are pleased to take a majority position in Xtract Energy," said John Byrne, Cambrian's CEO. "We see huge potential in the company's Oil Shale technology but also believe Xtract Energy will provide Cambrian access to new opportunities across the energy sector."
Xtract Energy was formed in October 2004 (previously Resmex plc) to invest in energy and mineral resources in Europe, North America, and Australia. It has subsequently built up a significant portfolio of oil shale resource tenements in Australia and has applied for an exploration permit in New Zealand. Xtract Energy, in conjunction with Australia's CSIRO (Commonwealth Scientific and Industrial Research Organisation), aims to develop commercially effective technology to unlock oil reserves in oil shale deposits in Queensland, Australia The Queensland deposits, known as Julia Creek, contain substantial quantities of oil. In one particular part of the deposit, called Area C, there are 415 million barrels of in situ resources.
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