Investment Update

Xtract Energy plc
31 October 2007

31 October 2007                                                       AIM: XTR

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

                     PROJECT UPDATE - AVIVA CORPORATION LTD

Xtract is pleased to refer shareholders to the following press release announced
in Australia by Aviva Corporation Ltd ('Aviva').

Xtract's interest in Aviva is held through investee company Wasabi Energy Ltd of
which Xtract holds approximately 36.6%. Xtract also has a direct holding of
options over 2 million shares in Aviva exercisable at A$0.50 each.

                        'COOLIMBA TO POWER THE MID WEST

Key Points:

• Coolimba Power - a new name in WA energy
• Project based on 400MW coal fired power station in the Mid West
• Leading emissions technology for carbon, sulphur and water
• Will provide up to 8% of the power for the SWIS network
• Coolimba a key to powering the Mid West

Integrated energy company Aviva Corporation (ASX:AVA) today launched a major new
development in the WA energy market, with the unveiling of the Coolimba Power
brand.

The Coolimba Power Project is a one billion dollar investment based on a 400MW
coal fired power station 20km south of Eneabba. The Project will play a key role
in powering the development of the Mid West region.

The Coolimba brand was officially launched in a ceremony at Eneabba by the Hon.
Kim Chance, Minister for the Mid West.

Aviva Corporation CEO Lindsay Reed said Coolimba will incorporate leading edge
emissions technology and provide a low cost power solution for the state.

'Coolimba Power will be a key part of unlocking the potential of the Mid West
region, providing fuel and geographic diversity to the SWIS power grid,' Mr Reed
said.

'It is estimated that there is $6.5 billion worth of projects under development
in the Mid West region - these projects all need power.'

Coolimba will be the first power station in Western Australia to deploy leading
edge emissions technology for carbon capture, desulfurization and air cooling.

• The carbon capture technology will allow for up to 90% of future carbon
emissions to be captured. Coolimba is the next logical scale up increment of
this technology which is being deployed in Queensland and Canada.

• The desulfurization technology will eliminate almost all sulphur emissions.

• The air cooling technology will reduce water consumption in the power plant by
up to 90%.

As the only base load power station north of Perth, the project will make a
significant contribution to the reduction of power transmission losses in the
Mid West, which are currently the highest in the state.

The project is located on private farmland and an existing mining lease, most of
which has been previously cleared for farming or mining. The mining method
adopted will allow 95% of the mining void to be backfilled and revegetated.

Mr Reed said as well as reliable and low cost power, the project would provide a
further boost for economic development in the region.

'We expect Coolimba to contribute at least 600 jobs during construction, and in
the long term, it will host 100 permanent jobs for locally housed employees when
commercial operation commences in 2012' he said.'

Enquiries please contact:

Xtract Energy plc              Andy Morrison, CEO          [phone]

Smith & Williamson             David Jones                 [phone]
Corporate 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 holds 51.5% 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.

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).





                      This information is provided by RNS
            The company news service from the London Stock Exchange