Investment Update

Xtract Energy plc
08 October 2007

8 October 2007 AIM: XTR

                               XTRACT ENERGY PLC

                          ('Xtract' or the 'Company')

                         PROJECT UPDATE - MEO AUSTRALIA

Xtract Energy Plc ('Xtract') is pleased to note the positive developments
towards the commencement of the appraisal drilling programme by investee company
MEO Australia Limited ('MEO') in the Timor Sea off the northern coast of
Australia. Xtract is the largest shareholder in MEO holding approximately 21.3%
of the issued capital.

On 5th October 2007 MEO advised the market that the Blue Marlin and West Atlas
jack-up rig arrived at Darwin harbour on 4th October 2007. MEO expects to spud
Heron-2 on or about 11th October 2007.

The Northern Territory's Chief Minister Clare Martin commented that the arrival
of the West Atlas jack-up rig for MEO Australia's gas field appraisals showed
the growing confidence in the Northern Territory's future as a regional hub for
energy supply. She added that the Nothern Territory Government remains committed
to supporting exploration companies such as MEO Australia in unlocking the
Northern Territory's enormous resource potential.

Commenting on the positive developments, Xtract's CEO Andy Morrison said that,
'Xtract Energy is delighted to see the final preparations for drilling taking
place and we look forward to further developments. MEO has been and remains a
cornerstone of our investment portfolio.'

Enquiries please contact:

Xtract Energy plc              Andy Morrison, CEO      [phone]

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

Scott Harris                   Stephen Scott           [phone]
                               Annabel Michie

For further Information on Xtract please visit www.xtractenergy.co.uk

About MEO

The MEO business plan is centred on the development of gas-to-liquids (GTL)
projects in the Australian waters of the Timor Sea, approximately 275 km
northwest of Darwin, in an area known as Tassie Shoal. The company has secured
Australian Commonwealth Government environmental approvals for two large-scale
methanol plants (1.8 mtpa) and an LNG plant (3 mtpa) that are valid until 2052.

Tassie Shoal is an area of shallow water adjacent to the Evans Shoal gas field
and is located around 25km east of MEO's exploration permit, NT/P68. MEO mapping
has identified five large structures in NT/P68 two of which were intersected by
the Heron-1 well drilled in 1972, confirming gas columns. The resources
contained in NT/P68 provides significant valuation upside by potentially
providing a feedstock for the GTL projects as an alternative to possible third
party gas supply from nearby resources.

About Xtract Energy Plc

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.

Xtract is supported by its cornerstone investor, Cambrian Mining Plc (AIM:CBM) a
diversified resource investment house which holds 51.6% of issued share capital.

A short description of the principal assets of Xtract other than MEO is set out
below. These assets are either held directly or through wholly owned
subsidiaries of the Company.

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 has recently been
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).



                      This information is provided by RNS
            The company news service from the London Stock Exchange