Investment Update

23 December 2008 AIM: XTR XTRACT ENERGY PLC ("Xtract" or the "Company") PROJECT UPDATE - MEO Australia Ltd Xtract refers shareholders to the following announcement released today in Australia by MEO Australia Ltd ("MEO"). "ASX AND MEDIA RELEASE Secures 12 month extension to farm-in to WA-359-P and WA-360-P Key Points: * Secures 12 month extension to drill/drop options on WA-359-P and WA-360-P originally due to expire 1 January 2009. * TC Billy delays handover of Songa Venus drilling rig until approximately 5th January 2009. MELBOURNE, AUSTRALIA (December 23, 2008) - MEO Australia Limited (ASX: MEO) is pleased to advise that the participants in WA-359-P and WA-360-P have agreed to a 12 month extension to the farm-in terms for these permits. MEO has an option that is due to expire on 1st January 2009, whereby MEO must commit to funding a well in each of the permits to retain its current 60% interest beyond this date. In consideration of extending this option by 12 months and thereby deferring the drilling commitment, MEO plans to acquire at least 175 km2 of additional 3D seismic to further delineate the Artemis prospect in WA-360-P and to reprocess sufficient existing 3D seismic to firm up the Hephaestus lead in WA359-P into a drillable prospect. The latter is contingent upon a successful outcome at Zeus-1. MEO is currently seeking farm-in partners with the intention of drilling at least one well in each of these permits in 2010. The original farmin arrangements for WA-359-P, WA-360-P and WA-361-P were agreed in October 2007. Since this time MEO has acquired 2D and 3D seismic, re-processed 3D seismic, confirmed the Zeus prospect in WA-361-P and developed an inventory of prospects and leads in the three permits (refer attachment 1). In July this year, MEO committed to drilling the Zeus-1 well in WA-361-P and secured Resource Development International Limited (RDI) as a farm-in partner, thereby cementing its interest in that permit. MEO has been advised that Tropical Cyclone Billy has delayed the release of the Songa Venus drilling rig from its current well until at least 5th January 2009. Once the rig is released to MEO, it will undergo a 6-7 day tow to the Zeus-1 location. Jürgen Hendrich Managing Director & Chief Executive Officer" A copy of the attachment referred to in the text above can be found in the announcement published by MEO, which is available on the Australian Stock Exchange website: www.asx.com.au Enquiries please contact: Xtract Energy Andy Morrison, CEO +44 (0)20 7079 1798 Smith & Williamson David Jones +44 (0)20 7131 4000 Corporate Finance Azhic Basirov Scott Harris Ian Middleton +44 (0)20 7653 0030 James O'Shaughnessy About Xtract Energy Xtract identifies and invests in a diversified portfolio of early stage energy sector technologies and businesses with significant growth potential. The Company aims 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. For further Information on Xtract please visit www.xtractenergy.co.uk 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 Ltd ("MEO") MEO (ASX: MEO) aims to become an integrated Australian Gas-to-Liquids ("GTL") company. In 2008, MEO made significant gas discoveries in the Australian Timor Sea, in an area of shallow water known as Tassie Shoal. Early commercialisation of these discoveries is planned through construction of Liquified Natural Gas ("LNG") and Methanol plants and export terminals on the off-shore Tassie Shoal. MEO has already secured Australian Government environmental approvals for two large scale (1.8 Mtpa) methanol plants and a 3 Mtpa LNG plant on Tassie Shoal. Xtract owns approximately 13.9% of MEO's issued share capital. Elko Energy Inc. ("Elko") Elko is a Canadian registered oil & gas exploration company which has interests in exploration and production licences in the Danish and Dutch North Sea. Its major asset is in the Danish North Sea; an 80% interest on 26 offshore blocks in a 5,400 sq km exploration and production licence close to the prolific Central Graben oil field. Technical work indicates the potential for significant reserves. Elko also holds a 33% operating interest in gas-bearing license blocks P1 and P2 in the Dutch North Sea. Xtract owns approximately 35.4% of Elko's issued share capital. Extrem Energy AS ("Extrem Energy") Extrem Energy is an exploration and production joint venture with Merty Energy of Turkey. The JV's aim is to create a new medium-sized oil and gas exploration and production business, initially focused on Turkey where Merty Energy has particular experience and expertise. Extrem Energy has a portfolio of licence interests including the high potential prospect at Candarli Bay in south-west Turkey. Xtract owns 20% of the issued share capital of Extrem Energy and has the option of increasing its shareholding to 34% before 30 June 2009. Xtract Oil Ltd ("XOL") Xtract's wholly owned subsidiary, XOL, is focused on the development of the Company's oil shale resources in Australia and the technology for oil extraction from oil shale resources. Xtract has oil shale exploration rights over mining tenements in the Julia Creek area of Queensland. In addition to evaluating third party technologies, XOL has been developing proprietary technology for the commercial extraction of liquid hydrocarbon products from oil shale. Xtract Energy (Oil Shale) Morocco SA ("XOSM") XOSM is a joint venture with Alraed Limited Investment Holding Company WLL, a company controlled by His Highness, Prince Bandar Bin Mohd. Bin Abdulrahman Al-Saud of Saudi Arabia. XOSM has signed a Memorandum of Understanding with the Office National des Hydrocarbures et des Mines for the purposes of evaluation and possible development of an oil shale deposit near Tarfaya, in the south west part of Morocco. Xtract currently holds 70% of the joint venture. Wasabi Energy Ltd ("Wasabi") Wasabi (ASX: WAS) is a diversified investor in traditional and renewable energy technologies. Amongst its listed assets it holds approximately 38% of Rum Jungle Uranium Ltd (ASX: RUM) which has interests in uranium exploration licenses covering some 4,150 sq km of Australia's Northern Territory and approximately 12.5% of Greenearth Energy Ltd (ASX:GER) which aims to explore and develop geothermal resources in Australia and the wider Pacific Rim. Xtract owns approximately 19.4% of the issued share capital of Wasabi. Zhibek Resources Ltd ("Zhibek Resources") Zhibek Resources is an oil and gas exploration and production company which has a 72% interest in the Tash Kumyr and Pishkoran exploration licences in the Kyrgyz Republic. Xtract has entered a farm-out agreement to fund a seismic and drilling programme for 2008-09. Xtract owns 25.0% of the issued share capital of Zhibek Resources. ---END OF MESSAGE--- This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
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