Xtract International Limited, a wholly owned subsidiary of Xtract Energy announced on 21 June 2011 that it had conditionally offered to acquire all of the issued and to be issued share capital of Elko Energy, Inc ("Elko") not already owned by Xtract International (the "Acquisition"). Xtract already owns approximately 49.97 per cent. of Elko's current issued share capital.

The Acquisition will constitute a reverse takeover pursuant to Rule 14 of the AIM Rules for Companies.

Elko is a Canadian registered oil and gas exploration company which has a direct interest in exploration and production licences in the Danish North Sea and an over-riding royalty interest in licences in the Dutch North Sea. Its major asset in the Danish North Sea is a 33 per cent. working interest in an exploration and production licence 02/05 and a 33 per cent. working interest in an adjoining exploration and production licence 01/11, east of the prolific Central Graben area. Technical work indicates the potential for significant resources on these combined licences. In addition, Elko holds a royalty interest in gas-bearing licence blocks P1 and P2 in the Dutch North Sea. The Directors believe that the Acquisition will have the effect of strengthening the Group's balance sheet, increasing liquidity in the Enlarged Share Capital and facilitating future decision making with regard to the Danish assets. Elko has operated assets in both the Netherlands and Denmark and completion of the Acquisition will result in this expertise becoming available to the Group. The Elko shareholders will gain liquidity as holders of the Acquisition Shares in the Enlarged Group.

Listing exchange: AIM

Expected first day of trading: 2011-09-13

Expected money raised: £3M