Investment Update

Xtract Energy plc
26 October 2007

26 October 2007                                                        AIM: XTR

                               XTRACT ENERGY PLC
                          ('Xtract' or the 'Company')

                         PROJECT UPDATE - MEO AUSTRALIA

Xtract is pleased to refer shareholders to the following press release announced
in Australia yesterday by MEO Australia Limited (MEO). Xtract currently holds
approximately 21.3% of the issued capital of MEO.

                       'FARMIN TO NORTHWEST SHELF PERMITS

Key Points:

• MEO farms into three highly prospective Northwest Shelf exploration permits

• Permits immediately adjacent to Rankin, Goodwin and Perseus Gasfields

• Permits: WA-359-P, WA-360-P AND WA-361-P

• Large Zeus feature identified with similar high amplitude bright spots to the
  reservoir sections of the adjacent Perseus Gasfield

MELBOURNE, AUSTRALIA (October 25, 2007) -- MEO Australia Limited (ASX: MEO) is
pleased to announce that the Company via its wholly owned subsidiary North West
Shelf Exploration Pty Ltd has farmed into three Northwest Shelf offshore permits
operated by Cue Energy Resources Limited (ASX: CUE). MEO has secured a 60% 
participating interest in these highly prospective exploration permits via a 
seismic acquisition option. MEO has agreed to meet the modest seismic 
acquisition obligations in these permits and has assumed the role as Operator 
for each permit. In any of these permits, if MEO decides to fund 100% of the 
cost of a single well, a 70% interest will have been earned. However, if the 
existing permit holders elect to pay 10% of the cost of a single well in any 
permit, the MEO interest in that permit would remain at 60%.

MEO has carefully reviewed the existing 2D and 3D data, which covers a large
portion of the permits. The permits offer scope for many prospective oil and gas
leads. At this stage, the most obvious significant potential appears to be in
WA-361-P, immediately northwest of the Perseus Gasfield and on the northern 
flank of the Goodwyn Gasfield where a thick sequence of interpreted Legendre 
shoreface and shallow marine sandstones are present in the Keast Graben. A 
potential stratigraphic trap, Zeus, has been identified, which is thought to be
a similar play and analogous to the Perseus Gasfield (12 Tcf) and to the new 
Woodside Persephone-1 discovery on the eastern flank of the North Rankin 
Gasfield.

Zeus is a Legendre shoreface/shallow marine sandstone play within the fault
bounded NNEtrending Keast Graben. The Legendre Formation appears to thicken into
the graben controlled by growth of basin margin syn-depositional faults,
thinning onto northern and southern high blocks. Generation and migration
modelling from Triassic source rocks in the Keast Graben underlying Zeus has
confirmed a likely petroleum charge mechanism. Zeus has prospective multi-TCF in
place potential of 5 to 15 Tcf over 350 sq km of closure with up to 100 m of net
pay. The most encouraging indications are the Company's observations, on the
existing 3D seismic data, of possible development of amplitude-related
hydrocarbon indicators that are similar to amplitudes observed in the same
reservoir gas sands at Perseus.

The respective participating interests for the permits prior to drilling would
be as follows:

Permit                 MEO          Cue Energy        Gascorp       Exoil
                    (operator)

WA-359-P               60%             20%             nil           20%
WA-360-P               60%             20%             20%           nil
WA-361-P               60%             20%             20%           nil

MEO has secured the PGS Australia seismic acquisition vessel, M/V Orient
Explorer to acquire approximately 300 sq km of new 3D seismic data. The new data
and selected reprocessing of the existing 3D dataset, followed by AVO (amplitude
variation with offset) and other studies, are expected to further delineate the
Zeus prospect and a number of other emerging leads in these exciting
strategically located permits.

In permits where MEO decides to fund the cost of a well, the drilling is likely
to occur in 2009. MEO has identified a number of commercialization paths for any
gas resources confirmed in the permits, including tie-in to nearby 
under-utilized gas production facilities and/or third party gas supply to new 
or proposed Northwest Shelf LNG developments requiring additional gas supplies. 
MEO's acquisition of interests in these Northwest Shelf permits offers the 
opportunity to significantly broaden the scope of the Company's current upstream
Interests. The permits are located within a proven world-class hydrocarbon 
province with highly developed production infrastructure. The interests are 
complementary to the Company's current plans to develop LNG and methanol 
production projects. MEO is currently drilling the Heron-2 well in the Bonaparte
Basin permit NT/P68, as part of a multi-well drilling campaign designed to 
confirm commercial gas resources in sufficient quantities to underpin the 
development of the Tassie Shoal methanol and LNG production projects.'

Further information on MEO can be found at www.meoaustralia.com.au.  As an ASX
listed company, MEO is not subject to the AIM Rules and the references to
resources in this announcement are not reported against a standard nor reviewed
by a named 'qualified person' as defined and required by the AIM Guindance Notes
for Mining, Oil and Gas Companies.

Enquiries please contact:

Xtract Energy plc       Andy Morrison, CEO          [phone]

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

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 its 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).








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