Drilling Update

6 July 2009 AIM: XTR XTRACT ENERGY PLC ("Xtract" or the "Company") DRILLING UPDATE - Extrem Energy Further to the announcement made on 1 July 2009, Xtract Energy Plc ("Xtract") is pleased to provide the following update on the progress of the production test being carried out at Sarikiz-2 by its Turkish joint venture Extrem Energy A.S. ("Extrem Energy"). Following the test of the interval at 1728-1733m which was found to produce associated carbon dioxide, further technical interpretation was carried out. This revealed the existence of a minor fault which was causing carbon dioxide from deep levels to penetrate the deeper oil reservoirs. The fault did not appear to extend further upwards. The new interpretation has been validated by the test of the interval between 1710-1715m which was completed on 6 July 2009. After recovery of the drilling fluids, the production test flowed oil without associated carbon dioxide. Initial indications are that a pumped oil flow rate of approximately 180bbl/day could be achieved from that interval alone. With the benefit of the new interpretation, the number of intervals still to test has been increased to eight, representing a further 57.5m of reservoir thickness compared with 6.5m of thickness in the interval just tested. The remaining sandstone intervals lie in a structure between the depth range 1483m to 1697m. Log indications are favourable for the remaining intervals but the ability to produce from them will remain unknown until they are tested. At this time, it is reasonable to expect that the total production flow rate from the well will meet or exceed the pre-drill estimate of 500bbl/day. Further progress updates will be provided as appropriate. All operations are controlled and operated by Merty Energy, Xtract's joint venture partner in Extrem Energy. Xtract holds 27% of Extrem Energy and has the option of increasing its shareholding to 34% by contributing a further investment of US$1.75m before 5 August 2009. The above information has been reviewed and approved by Ongun Yoldemir, Managing Director of Extrem Energy, who has a masters degree in geological engineering and worked as an explorationist in the oil and gas sector in the Middle East, Kazakhstan, Azerbaijan, and North Sea, has over 28 years' experience in the resource and energy sector and is a member of the American Association of Petroleum Geologists, European Association of Geologists and Engineers, the Society of Exploration Geophysicists and several related Turkish institutions. Enquiries please contact: Xtract Energy Andy Morrison, CEO +44 (0)20 3205 1148 Smith & Williamson David Jones +44 (0)20 7131 4000 Corporate Finance Azhic Basirov Barrie Newton About Xtract Energy Xtract identifies and invests in a diversified portfolio of early stage energy sector technologies and businesses with significant growth potential. The Company aims 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. For further information on Xtract please visit www.xtractenergy.co.uk 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 Ltd ("MEO") MEO (ASX: MEO) aims to become an integrated Australian Gas-to-Liquids ("GTL") company. In 2008, MEO made significant gas discoveries in the Australian Timor Sea, in an area of shallow water known as Tassie Shoal. Early commercialisation of these discoveries is planned through construction of Liquified Natural Gas ("LNG") and Methanol plants and export terminals on the off-shore Tassie Shoal. MEO has already secured Australian Government environmental approvals for two large scale (1.8 Mtpa) methanol plants and a 3 Mtpa LNG plant on Tassie Shoal. Xtract owns approximately 6.0% of MEO's issued share capital. Elko Energy Inc. ("Elko") Elko is a Canadian registered oil & gas exploration company which has interests in exploration and production licences in the Danish and Dutch North Sea. Its major asset is in the Danish North Sea; an 80% interest on 26 offshore blocks in a 5,400 sq km exploration and production licence close to the prolific Central Graben oil field. Technical work indicates the potential for significant reserves. Elko also holds a 60% operating interest in gas-bearing license blocks P1 and P2 in the Dutch North Sea. Xtract owns approximately 35.0% of Elko's issued share capital. Extrem Energy AS ("Extrem Energy") Extrem Energy is an exploration and production joint venture with Merty Energy of Turkey. The JV's aim is to create a new medium-sized oil and gas exploration and production business, initially focused on Turkey where Merty Energy has particular experience and expertise. Extrem Energy has a portfolio of licence interests including the high potential prospect at Candarli Bay in south-west Turkey. Xtract owns 27% of the issued share capital of Extrem Energy and has the option of increasing its shareholding to 34% before 5 August 2009. Xtract Oil Ltd ("XOL") Xtract's wholly owned subsidiary, XOL, is focused on the development of the Company's oil shale resources in Australia and the technology for oil extraction from oil shale resources. Xtract has oil shale exploration rights over mining tenements in the Julia Creek area of Queensland. In addition to evaluating third party technologies, XOL has been developing proprietary technology for the commercial extraction of liquid hydrocarbon products from oil shale. Xtract Energy (Oil Shale) Morocco SA ("XOSM") XOSM is a joint venture with Alraed Limited Investment Holding Company WLL, a company controlled by His Highness, Prince Bandar Bin Mohd. Bin Abdulrahman Al-Saud of Saudi Arabia. XOSM has signed a Memorandum of Understanding with the Office National des Hydrocarbures et des Mines for the purposes of evaluation and possible development of an oil shale deposit near Tarfaya, in the south west part of Morocco. Xtract currently holds 70% of the joint venture. Wasabi Energy Ltd ("Wasabi") Wasabi (ASX: WAS) is a diversified investor in traditional and renewable energy technologies. Amongst its listed assets it holds approximately 38% of Rum Jungle Uranium Ltd (ASX: RUM) which has interests in uranium exploration licenses covering some 4,150 sq km of Australia's Northern Territory and approximately 12.5% of Greenearth Energy Ltd (ASX:GER) which aims to explore and develop geothermal resources in Australia and the wider Pacific Rim. Xtract owns approximately 17.4% of the issued share capital of Wasabi. Zhibek Resources Ltd ("Zhibek Resources") Zhibek Resources is an oil and gas exploration and production company which has a 72% interest in the Tash Kumyr and Pishkoran exploration licences in the Kyrgyz Republic. Xtract has entered a farm-out agreement to fund a seismic and drilling programme for 2008-09. Xtract owns 25.0% of the issued share capital of Zhibek Resources. ---END OF MESSAGE--- This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.