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Oil and gas explorer Xtract Energy (LSE:XTR) declared £4.3 million net after tax loss in a year that saw the change of the company from an investment company to an operating and trading business, prompting shares of the AIM re-enlisted company to drop 15.5% at the close of trading in London.
“2011 has been a year of significant change for the Company,” stated Peter Moir, Chief Executive of Xtract, in the 2011 annual results released today.
Following the restructuring of the company, Xtract performed a series of acquisitions and disposals of assets and interests “to focus more on traditional oil and gas assets that could add value to the Company in the near to medium term.”
2011 Highlights
Xtract’s current Chairman, Dr. George Watkins, OBE, acknowledged the former chairman of the company, thanking him for providing the direction for the company.
The company’s major shift in strategy commenced in the acquisition of Elko Energy, a Canadian oil and gas exploration company holding interests in the Danish and Dutch North Sea.
Unfortunately, in March of this year, the Luna well, located in the Danish acreage as an offshoot of the acquisition of Elko Energy, was plugged and abandoned for lack of hydrocarbon play.
The Netherlands acreage, which Elko Energy farmed out to Chevron for a 5% royalty last year, is now being drilled in a “tight hole” designation to protect proprietary technology and the results are expected to be known this summer.
A contingent resource of approximately 280 billion cubic feet of gas or 46.67 million barrels of oil has been reported by an independent company over five confirmed discoveries in the Netherlands blocks.
A technical study of the oil shale in Xtract’s Julia Creek asset in Australia was also commissioned by the company “to recommend options that might allow value to be realised from this asset.”
Xtract also disposed its 50% stake of the asset in Turkey, farmed out its 75% share in an asset in the Kyrgyz Republic, and entered into a joint venture to evaluate and develop an oil shale in Morocco.
CEO Comments
Despite loss and lack of producing assets, CEO Moir’ strategy is still to continue to explore possibilities, saying:
“…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.”
References
↑ Company history
