Investment Update

22 September 2008 AIM: XTR XTRACT ENERGY PLC ("Xtract" or the "Company") PROJECT UPDATE - MEO Australia Ltd Xtract refers shareholders to the following press release announced in Australia by MEO Australia Ltd ("MEO"). Xtract holds approximately 13.9% of the issued capital of MEO. "ASX AND MEDIA RELEASE MEO Increases interest in WA-361-P & Zeus-1 to 35% Key Points: * Cue and Gascorp have each elected NOT to fund 5% of the Zeus-1 well * Additional 10% intrest reverts to MEO, taking interst in WA-361-P to 35% MELBOURNE, AUSTRALIA (September 21, 2008) - MEO Australia Limited (ASX: MEO) is pleased to advise that Cue and Gascorp have advised MEO that they have elected not to exercise their respective options to each fund 5% of the Zeus-1 well to retain a 20% working interest. Under the terms of the farm-in agreement with MEO, this combined 10% interest will now be transferred to MEO, together with the associated 10% funding obligation, increasing MEO's interest to 35%. +-------------------------------------------------------------------+ | WA-361-P Participating Interests | | (Post Cue/Gascorp Election NOT to fund 5% of Zeus-1) | |-------------------------------------------------------------------| | North West Shelf Exploration Pty Ltd | 35% | Operator | |-----------------------------------------+-----+-------------------| | Resource Development International Pty | 35% | Farming in to MEO | | Ltd | | | |-----------------------------------------+-----+-------------------| | Cue Exploration Pty Ltd | 15% | ASX: CUE | |-----------------------------------------+-----+-------------------| | Gascorp Australia Pty Ltd | 15% | Unlisted | |-------------------------------------------------------------------| | *Wholly owned subsidiary of MEO Australia | +-------------------------------------------------------------------+ The Zeus-1 well is targeting a multi-Tcf gas play in the Carnarvon Basin, off Australia's North West Shelf. MEO is paying 20% of the costs of Zeus-1 to a cap of US$31.25m and retains a 35% interest in the well and WA-361-P. In the event of a major discovery at Zeus-1, MEO sees a plethora of commercialisation options including the possible application of Floating LNG (FLNG) technology. The Songa Venus semi-submersible rig is expected on location late October 2008. Jurgen Hendrich Managing Director & CEO MEO Australia Limited Operator of WA-361-P" Enquiries please contact: Xtract Energy Andy Morrison, CEO +44 (0)20 7079 1798 Smith & Williamson Corporate David Jones +44 (0)20 7131 4000 Finance Limited Azhic Basirov Scott Harris Stephen Scott +44 (0)20 7653 0030 Ian Middleton For further Information on Xtract please visit About Xtract Energy Xtract identifies and invests in a diversified portfolio of early stage energy sector technologies and businesses with very significant growth potential. We aim to work closely with the associated management teams to achieve critical project milestones, to finance later development stages, and to build and crystallise value for all shareholders and partners. A short description of the principal assets of Xtract is set out below. These assets are either held directly or through wholly owned subsidiaries of the Company. MEO Australia MEO is focused on developing gas-to-liquids ("GTL") projects in the Timor Sea Australia, in an area of shallow water known as Tassie Shoal. It has secured Commonwealth Government environmental approvals for two large scale (1.8 Mtpa) methanol plants (50 per cent. interest) and a 3 Mtpa LNG plant (100 per cent. interest) which are adjacent to the Evans Shoal gas field. Elko Energy Elko is an oil & gas exploration company which has an interest in a 5,370km2 exploration and production licence in the Danish North Sea and an investment in Dragon Energy Inc, a private Canadian company, with a development project in Gansu Province, China. Wasabi Energy Wasabi is a diversified investor in renewable energy and low greenhouse emission technologies, with interests in geothermal waste/heat, uranium exploration in Australia's Northern Territory and biodiesel investments in Victoria. Central Asian Interests Xtract's Central Asian interests include a production sharing agreement with Kyrgyzneftegaz to instigate a water injection project on the Beshkent-Togap oil field. Xtract also holds interests in several exploration licences in the Tash Kumyr area and in the Toktogul exploration licence. Oil Shale Xtract has oil shale and related petroleum product exploration rights over mining tenements in the Julia Creek area of Queensland and was granted an exploration permit which gives rights to explore for oil shale in an area in the South of New Zealand. It is investigating the commercial production of hydrocarbons (crude oil) from oil shale. Xtract is also available for trading on the open market segment of the Frankfurt Stock Exchange (ticker R9X.FSE). ---END OF MESSAGE---