Investment update

Xtract Energy plc
31 January 2008

31 January 2008                                                         AIM: XTR

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

                       PROJECT UPDATE - MEO Australia Ltd

Xtract refers shareholders to the following press release announced today in
Australia by MEO Australia Ltd ('MEO').

Xtract currently holds approximately 15.7% of the issued capital of MEO.
 
                             'ASX AND MEDIA RELEASE

                  HERON-2 WELL WEEKLY DRILLING REPORT - No 14

Key Points:

   •Heron-2 well plugged and abandoned
   •Rig successfully moved and pinned over Blackwood-1 location
   •Blackwood-1 spud date February 1, 2008

MELBOURNE, AUSTRALIA (January 31, 2008) - MEO Australia Limited (ASX: MEO)
submits this final Heron-2 drilling report for the period ending 1000 hours,
January 30, 2008. The Heron-2 well was spudded at 2230 hours (ACST) on October
12, 2007 in Exploration Permit, NT/P68.

The West Atlas has successfully plugged the Heron-2 well. The rig moved off the
Heron-2 location at 2200 hours, January 29, 2008. At approximately 9am January
30, 2008, the rig had pinned to the seafloor over the Blackwood-1 location. MEO
expects to spud Blackwood-1 on February 1, 2008

Heron-2 was drilled by Seadrill's West Atlas jack-up rig contracted to MEO for
two firm wells. The Heron-2 well was designed as a vertical well to penetrate
and production test the Epenarra Darwin Formation and the deeper Elang/Plover
Formation of the Heron North structure. Open-hole production testing of the
Elang/Plover Formation was conducted in Heron-2 and while it was confirmed that
the Plover sands did not contribute to the recorded flow due to blockages in the
well immediately above the Plover formation, the Elang sands did flow gas to
surface at a maximum rate exceeding 6 MMscf/day.

The Darwin formation was subsequently production tested in Heron-2. While the
evidence from electric logs of gas saturation and the presence of some
significant fractures in the perforated section appeared to be positive, the
well only produced minor quantitities of hydrocarbons to surface and failed to
produce a consistent flow. The joint venture is presently reviewing the Heron-2
well, 3D seismic and inversion data to determine the reasons for the lack of
permeability through the Darwin formation at this specific location. The joint
venture continues to believe that significant resources may still exist in the
Epenarra and Heron structures. The General Meeting Presentation lodged with ASX
on January 24, 2008 provides a more comprehensive review of the Heron-2 well
results.

The participants in the Heron-2 well and permit are:
TSP Arafura Petroleum Pty Ltd (MEO subsidiary)                              45%
Oz-Exoil Pty Ltd (MEO subsidiary)                                           45%
Petrofac Energy Developments Oceania (Petrofac Limited Subsidiary)          10%

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

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   David Jones             [phone]
Finance Limited                Azhic Basirov       
                               
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 50.12% 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 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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