Investment update

Xtract Energy plc
03 March 2008

3 March 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 currently holds approximately 15.7% of the issued capital of MEO.

                             'ASX AND MEDIA RELEASE

                 BLACKWOOD-1 WELL WEEKLY DRILLING REPORT - No 5

Key Points:

• Drilled 12 1/4 inch hole to a total depth of 3286m
• Well encountered elevated gas readings in Flamingo and Plover sands
• First logs confirm gas saturation with neutron density crossover
• Total gross hydrocarbon column of 126m over two sandstone units

MELBOURNE, AUSTRALIA (March 3, 2008) - MEO Australia Limited (ASX: MEO) submits
this drilling report for the period ending 1000 hours March 3, 2008. Blackwood-1
was spudded at 1830 hours (ACST) on February 1, 2008 in Exploration Permit NT/
P68.

The rig has completed drilling the 12 1/4 inch hole to a total depth of 3286m.
The well has encountered elevated gas readings in the interpreted Flamingo and
Plover sandstone units. The mud gas sampling recorded no carbon dioxide (CO2)
while drilling the gas saturated zones, suggesting the gas should be not high in
CO2. Gas quality will be confirmed by MDT (Modular Dynamics Testing) down-hole
sampling and subsequent analysis.

The rig is currently acquiring a full spread of logging data, including image
and side wall core samples. MDT testing will be undertaken later today to
recover pore pressure data and gas samples.

Initial log interpretation indicates a total gross hydrocarbon column of 126m
comprising of an upper Flamingo gross sand unit between 3136mMD to 3149mMD (13m)
and a lower Plover gross sands unit between 3177mMD to 3262mMD: GWC (85m)
resulting in a combined 98m of gross gas saturated sand interval. This column is
considerably in excess of the anticipated most likely 'mid case' pre-drill
estimate of 57m.

Data acquisition and interpretation is ongoing and subsequent releases detailing
the significance of the Blackwood-1 drilling results will be made in due course.

Blackwood-1 is being drilled by Seadrill's West Atlas jack-up rig. The
Blackwood-1 wildcat well is being 100% funded as a sole risk exclusive operation
by MEO. The well is designed as a vertical well to penetrate, log and recover
hydrocarbon samples in the Plover Formation of the Blackwood structure.

The participants in the Blackwood-1 well are:
TSP Arafura Petroleum Pty Ltd (MEO subsidiary)                              50%
Oz-Exoil Pty Ltd (MEO subsidiary)                                           50%

C.R.Hart, Managing Director
MEO Australia Limited
NT/P68 Operator'

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 this drilling update has
not been reviewed by a named 'qualified person' as defined and required by the
AIM Guidance Note for Mining, Oil and Gas Companies.

Enquiries please contact:

Xtract Energy plc              Andy Morrison, CEO      [phone]

Smith & Williamson Corporate   Azhic Basirov           [phone]
Finance Limited                David Jones       
                               
Scott Harris                   Stephen Scott           [phone]
                               Annabel Michie

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

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, together with its wholly owned
subsidiary Cambrian Investments Holdings Limited, holds approximately 50.1% of
the issued share capital of the Company.

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).



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            The company news service from the London Stock Exchange