Trowers & Hamlins

Trowers & Hamlins LLP, the City international law firm, has advised AIM listed client Xtract Energy plc ("Xtract") in respect of an exploration agreement entered into by Xtract's wholly-owned subsidiary, Zhibek Resources Limited ("Zhibek") and Santos International Holdings  Pty Ltd ("Santos"),  a  subsidiary  of  Santos  Ltd,  Australia's  second largest oil and  gas company.

Completion of the  agreement  is subject to certain conditions which Xtract believes will be satisfied in the near future. Under the  agreement,  Santos is  funding  up to  US$8.5  million of Zhibek's near-term exploration programme, which includes a 2D seismic programme over a number of licence areas in the Fergana basin area in the Kyrgyz Republic, to earn a  75% interest in Zhibek.

Xtract will retain representation on  the Board of Zhibek and  will contribute up to  US$1.5 million to Zhibek's funding  in the  latter stages of the  current exploration  programme and may contribute to Zhibek's future exploration and development programs.

Richard Hildebrand, partner at Trowers & Hamlins LLP advised Xtract and was assisted by Nick Harrisingh and Charles Wilson.  Richard commented: "We are delighted to have advised Xtract in respect of this exploration agreement which is another milestone in the development of Xtract's portfolio of assets and interests."