Further to the announcement made on September 16, 2008, Xtract Energy has provided a further update on developments in Turkey with its new joint venture partner, Merty Energy, Petroleum Exploration, Education and Services Inc.
Xtract has paid the final installment of US $1.5 million in respect of the agreed initial work program and has therefore completed the agreement that gives it a 20% interest in the joint venture company. Xtract has the option of increasing its shareholding in the joint venture to 34% by contributing a further investment of US $3.5 million before June 2009.
Formally registered as Extrem Energy Petroleum Exploration, Production, Education and Services A.S., the Company will be known in English as Extrem Energy A.S., which will be the name used in future announcements.
Now that Extrem Energy has been registered, focus will turn to the process of formally transferring the agreed portfolio of license interests to the Company.
The drilling plans for the first joint venture well SARAKIZ-2 remain as previously announced. The well is expected to spud on or before October 13, 2008. The rig is operated by Gney Yildizi of Turkey. The target is in the interval of 1500-1700m in depth, which is expected to be reached within 25-30 days. Depending on the drilling results, first production could be expected in the first half of 2009.
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