StockMarketWire.com - Xtract Energy said it has assigned its oil shale rights in the Julia Creek project in Australia to Global Oil Shale Group (GOS) for an equity stake in the latter company totalling 6 million shares.

In a related deal, Xtract is selling its 70% stake in Xtract Energy (Oil Shale) Morocco S.A. to GOS, subject to certain conditions.

"These two transactions result in the alignment of both companies' strategic objectives," Xtract said in a statement.

The conditions relating to the Morocco S.A. stake included GOS obtaining Office National des Hydrocarbures et des Mines and other consents, including that of the other shareholder.

The Julia Creek tenements cover an area of 709 sq km and contain JORC defined resources of 2.18 billion barrels of shale oil at an average grade of 61 litres a tonne at zero moisture.

Xtract said it would retain a long-term interest in Julia Creek project through a 1% net smelter royalty.

It would receive an initial cash payment of A$50,000 on the signing of the share purchase agreement and prior to GOS' commitment to a full work programme on Julia Creek.


At 8:15am: [LON:XTR] share price was +0.02p at 0.2p



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