Further Investment

Xtract Energy plc
04 May 2007

4 May 2007                                                             AIM: XTR

                               Xtract Energy Plc
                                   ('Xtract')

                             Further Investment in

                                 MEO Australia

Xtract Energy plc is pleased to announce the further investment in MEO Australia
Limited ('MEO') through the exercise of 28,598,157 A$0.25 options. Xtract,
via its wholly owned subsidiary Cambrian Oil & Gas, now holds 77,116,814
shares or approximately 28% of the issued capital of MEO.

MEO has successfully completed the acquisition of new 2D and 3D seismic data
over the Epenarra structure, located in MEO's 100% owned Exploration Permit NT/
P68 in the Timor Sea. Epenarra is a broad, low relief anticline structure with
mapped closure of approximately 1,200 square kilometres, located entirely within
Australian waters. The data has been acquired to confirm optimal well locations
for the Heron-2 appraisal well and the Blackwood-1 exploration well.

MEO intends drilling up to three wells (Heron-2, Blackwood-1 and potentially
Heron-3) in the Permit area and has secured a new jack-up rig to undertake the
drilling. The rig is expected to arrive on location in September 2007.

MEO has previously secured Australian Commonwealth Government environmental
approvals for two large scale (1.8 mtpa) methanol plants (50% interest) and a 3
mtpa LNG plant (100%), in the Timor Sea, approximately 275 km northwest of
Darwin, Australia, in an area known as Tassie Shoal.

Enquiries in relation to Xtract please contact:

Xtract Energy plc                   John Newton, CEO     [phone]

Smith & Williamson Corporate        David Jones          [phone]
Finance Limited                     Azhic Basirov




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