Investment Update

Xtract Energy plc
13 December 2007

13 December 2007                                                        AIM: XTR
                               XTRACT ENERGY PLC
                          ('Xtract' or the 'Company')

                               MEO Australia Ltd

The Company's wholly owned subsidiary Xtract International Ltd (formerly
Cambrian Oil & Gas Plc) ('Xtract International') has sold 10 million shares in
MEO Australia Ltd ('MEO') at A$1.25 per share in cash.

The proceeds of this sale will provide Xtract with working capital and with the
opportunity to offer development support to other investee companies within its
portfolio. Further investment updates will be provided by the Company as and
when they may become appropriate.

Following this disposal Xtract (through Xtract International) retains 60,656,814
shares in MEO, representing approximately 15.7% of MEO's issued share capital
following MEO's recent placing.

Commenting on the disposal, Andy Morrison, Chief Executive Xtract Energy plc,
said

'We are very pleased to note the positive news coming from MEO's drilling
programme in the Timor Sea. Xtract is now able to take advantage of this success
to accelerate other businesses within the Company's investment portfolio,
including the development of our proprietary oil shale technology and resource
holdings. Notwithstanding this recent sale, we remain strong supporters of MEO
and expect to remain a significant shareholder as it moves into future
development phases'.

Enquiries please contact:

Xtract Energy plc                Andy Morrison, CEO     [phone]

Smith & Williamson Corporation   David Jones 
Finance Ltd                      Azhic Basirov          [phone]
                                 
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 provide significant valuation upside by potentially
providing a feedstock for the GTL projects as an alternative to possible third
party gas supply from nearby resources.

MEO's consolidated net assets as at 30 June 2007 were approximately A$85million.
MEO made a consolidated net loss of approximately A$3.4 million for the year
ended 30 June 2007.

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 approximately 50.41% of issued
share capital.

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.

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