Xtract Energy’s Elko boosted as Abu Dhabi gets stake in Dutch licences

Xtract Energy told investors that the Abu Dhabi National Energy Company has taken a 12 percent stake in blocks P1 and P2 offshore the Netherlands.

The AIM-listed oil firm has an indirect interest in the project which is being run by Chevron. A well is planned in the fourth quarter for the P2 block.

Extract has a 50 percent stake in Elko Energy, who in-turn has a 5 percent overriding royalty over oil and gas sales from the blocks. Elko previously had an equity stake in the licence blocks but in September 2010 it divested the assets, in return for the royalty, in a deal with Chevron.

Chevron also paid Elko €4.3 million in cash for its share of past costs.

The two blocks are owned by a group of firms, comprising Chevron with a 48 percent stake, the Dutch state oil firm Energie Beheer Nederland (EBN) with 40 percent and Abu Dhabi National Energy – via its Dutch subsidiary TAQA Energy – has 12 percent.

Xtract noted that Chevron is planning to drill the P2-10 well, on the P2 block, in the fourth quarter of 2011.This appraisal well is targeting an existing gas discovery and one of the main objectives is to evaluate commercial hydrocarbon flow rates. The well programme is expected to last for up to 100 days.

“We are delighted that another large and respected energy company, which is already active in the Dutch exploration and production business, wishes to participate in the P1 and P2 blocks activity with Chevron and EBN,” Elko chief executive Peter Moir said.

“This increases our confidence in the potential of the acreage and the attractiveness of the royalty arrangement to our shareholders.”

Bron: Proactive Investors, 26 mei 2011