Investment Update

2 January 2009
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
      RDI options in relation to MEO's Timor Sea Projects lapse

Key Points:
*          RDI options over Timor Sea projects lapse unexercised on
  31st December 2008.
*          Handover of Songa Venus drilling rig expected 8th January
  2009.

MELBOURNE, AUSTRALIA (January 2, 2009) - MEO Australia Limited (ASX:
MEO) advises that the options granted to Resource Development
International Limited (RDI) over the company's Timor Sea projects
lapsed at close of business on 31st December 2008.

These options were conditional upon RDI achieving a public listing by
year end 2008. The options granted to RDI in July 2008 involved a
staged farm-in to MEO's NT/P68 exploration permit containing the
Blackwood (MEO 100%) and Heron (MEO 90%) gas discoveries, the Tassie
Shoal Methanol Project (TSMP) and Timor Sea LNG Project (TSLNGP). MEO
plans to commence a farmout process to attract a farmin partner
during 2Q.

RDI remains a valued JV partner in MEO's 35% owned WA-361-P permit,
the focus of the forthcoming Zeus-1 well, targeting >10 Tcf potential
gas-in-place close to existing and planned LNG producing
infrastructure. RDI is paying 80% of Zeus-1 to a cap of US$31.25m.

MEO has been advised to expect the release of the Songa Venus
drilling rig from its current well on or about the 8th January 2009.
Once the rig is released to MEO, it will undergo a 6-7 day tow to the
Zeus-1 location.

Participants

+-------------------------------------------------------------------+
| Company                                         | WA-361-P Equity |
|-------------------------------------------------+-----------------|
| North West Shelf Exploration Pty Ltd (Wholly    | 35%             |
| owned subsidiary of MEO Australia Limited)      |                 |
| Operator                                        |                 |
|-------------------------------------------------+-----------------|
| Resource Development International Limited      | 35%             |
| (Unlisted)                                      |                 |
|-------------------------------------------------+-----------------|
| Cue Energy Resources Limited (ASX: CUE)         | 15%             |
|-------------------------------------------------+-----------------|
| Gascorp Australia Pty Ltd (Unlisted)            | 15%             |
+-------------------------------------------------------------------+


Jürgen Hendrich
Managing Director & Chief Executive Officer"

Enquiries please contact:


Xtract Energy      Andy Morrison, CEO  [phone]

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

Scott Harris       Ian Middleton       [phone]
                   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.

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