xtract energy and globaloilshale

Thought you might be interested to know that XTR Xtract Energy an AIM listed Company which bought the oil shale rights off IRC in a transaction in late 2012 sold those rights on to GlobalOilShale. The mooted valuation of the shares in that original transaction were valued at 11p per share.

Well in the last few weeks GlobalOilShale came back to XTR and bought out the Royalty agreement at something like 40p per share so in the space of a year their share price (although they are a private Company) has gone up 300+%

That should bode well for IRC right because GOS started drilling November 1st 2013 so their transaction in December 2013 with XTR suggests drilling was going well for them to buy out the royalty ?

Maybe HotRock has some insight into all this?

Here is the news release from XTR. Note that GOS have not issued any news release on their own website.
http://www.investegate.co.uk/xtract-resources-plc--xtr-/rns/royalty-buy-back-agreement-signed-on-julia-creek/201312190850389597V/

Royalty Buy Back Agreement signed on Julia Creek Tenements


Xtract (AIM:XTR) is pleased to announce that is has signed a Royalty Buyback Option exercised by Global Oil Shale Group Plc ("GOS Group").

Key Points

· GOS Group has exercised its option to buy back the 1% net smelter royalty as stipulated in the Royalty Agreement between GOS Australia and Xtract dated 16 December 2012
· The buy back price is time related and exercise at this time values the option at
AUD 1,000,000
· The option exercise provides Xtract with a further ordinary share allotment in GOS Group of 1,371,365 shares at a current GOS Group share price of 40p, a significant increase from the 11p share price at the original transaction date
· GOS Group has undertaken to issue the Royalty Shares to Xtract within 7 days of the day of the signed agreement
· On the issue of the shares the Royalty shall be extinguished
· Xtract will hold 7,371,365 shares in GOS Group, with an additional 1.5 million to be issued if, as is intended, GOS Group lists on a recognised Stock Exchange
· The issue of the Royalty Shares will result in Xtract holding 7.6% of the current issued share capital of the GOS Group