Xtract Energy provides the following update on the Sarikiz-2 well in Turkey which is being drilled on behalf of Extrem Energy A.S.

The well was spudded on Friday, October 31, 2008. As of November 26, drilling was in progress at a depth of 1,454m. The shales of the cap rock for the target reservoir zone are being drilled. It is hoped that by approximately 1,470m the first sand stones, which are expected to be of reservoir quality, will be encountered.

The rig is operated by Guney Yildizi of Turkey. The programmed target depth of the well is 1,800 +/-50m which is expected to be reached in no more than one week. The drilling program has experienced minor delays in awaiting casing materials but is otherwise proceeding as expected. Depending on the drilling results, first production could be expected in the first half of 2009.

Xtract currently holds a 20% interest in Extrem Energy and has the option of increasing its shareholding to 34% by contributing a further investment of US $3.5m before June 2009.

Tags: Xtract Energy