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Xtract shares suspended
Posted 27.06.2012 09:35:36 av John Bradbury
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London-listed Xtract Energy is facing a cash crisis and trading in its shares has been suspended while its financial position is clarified after being asked for more money by Norwegian operator Noreco to fund the Danish Luna exploration well.

Xtract stated today that it has received additional cash calls from Noreco, the operator of the Norwegian Luna exploration well, in relation to cost overruns on the well, putting it in financial difficulty. “And as a result its financial position is currently uncertain,” Xtract declared.

Operator Noreco declared that the Luna well was a dry hole in March this year.

Furthermore Xtract says it is also waiting for news from Chevron regarding a the status of drilling on a Dutch well, P2-10.

“The company is currently undertaking a number of discussions with certain existing debtors and creditors and is exploring various potential short term funding options designed to provide access to immediate working capital in order to continue trading.

Noreco commenced drilling the Luna 1X well back in February with the Maersk Resolve rig in block 1/11.

Xtract reported a net loss of £1.2 million for the six months ending June 2011, down from a £10.3 m loss for the six months to June 2010. At the end of June last year Xtract reported £4.58 m of cash, plus net assets of £8.035 m. In September last year Xtract completed the acquisition of Elko Energy through which it participated the Danish Luna well with 33% equity.
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