Investment Update

Xtract Energy plc
15 October 2007

15 October 2007                                                       AIM: XTR

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

                         PROJECT UPDATE - MEO AUSTRALIA

Xtract Energy Plc ('Xtract') is pleased to note the announcement by investee
company MEO Australia Limited ('MEO') advising that the Heron-2 well was spudded
on Friday 12 October 2007 in Exploration Permit NT/P68. Xtract is the largest
shareholder in MEO holding approximately 21.3% of the issued capital.

The permit is owned by MEO (90%) and Petrofac Energy Developments Oceania Ltd.
(10%). MEO operates the permit.

The planned total depth of the Heron-2 well is 4,300 metres below the seafloor.
Depending on the results of Heron-2, the permit partners plan to drill Heron-3,
which is designed as a horizontal well through a zone anticipated to be highly
fractured in the Darwin Formation, to test well deliverability.


Further information on MEO can be found at www.meoaustralia.com.au

Enquiries please contact:

Xtract Energy plc              Andy Morrison, CEO      [phone]

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

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 provides significant valuation upside by potentially
providing a feedstock for the GTL projects as an alternative to possible third
party gas supply from nearby resources.

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 51.6% of issued share capital.

A short description of the principal assets of Xtract other than MEO 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).






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