Investment Update

16 July 2008
AIM: XTR
                          XTRACT ENERGY PLC
                     ("Xtract" or the "Company")

                          INVESTMENT UPDATE

Xtract is pleased to announce the completion of the first round of
talks with Merty Energy, Petroleum Exploration, Education and
Services Inc ('Merty') of Turkey regarding a proposed investment in a
new exploration and production joint venture. Xtract and Merty,
together, aim to create a new medium-sized oil and gas exploration
and production business initially focused on Turkey, where Merty has
particular expertise and experience.

In this first stage, Xtract has agreed to provide US$1.5 million of
secured interim finance to enable Merty to obtain drilling equipment
for the first proposed joint venture well in the Alesehir/Sarakiz
prospect which is scheduled for first drilling in October 2008.
Following this agreement, Xtract and Merty intend to negotiate and
enter into definitive agreements for the proposed new joint venture
company. In the event that definitive agreements are not entered into
by 31 August 2008, the interim finance will become repayable by Merty
by 30 September 2008.

Further announcements on the subject will be made as appropriate.


Enquiries please contact:


Xtract Energy Plc         Andy Morrison, [phone]
                          CEO
Smith & Williamson        David Jones     [phone]
Corporate Finance Limited Azhic Basirov
Scott Harris              Stephen Scott  [phone]
                          Ian Middleton



About Merty

Merty is an Oil and Gas company that owns about 18 exploration
licenses in several basins of Turkey. It has successfully discovered
new gas fields in a license where it is the operator. It also
gives consulting, support and operations services parties in the
business for hydrocarbon, geothermal, coal and ore explorations,
productions and asset development in Turkey, in the Middle East and
the CIS Countries.  It has experienced local & international
technical experts in all aspects of hydrocarbon exploration.

Merty's services include;


  * Geological , Geophysical, Geochemical and Petroleum Engineering
    Services
  * Acquiring Oil and Gas Exploration & Production Licences, Oil and
    Gas Production Fields
  * Assisting Oil and Gas Companies in Exploration & Production
  * Assisting Mining Companies in Exploration & Production
  * Data Acquisition, and Interpretation for Exploration and
    Production
  * Environment Friendly & Efficent Energy Solutions
  * Oilfield and Office Logistics, Including Shipping and
    Transportation
  * Strategy Planning
  * Geotechnical Services
  * Environmental Studies
  * Coal Bed Methane Feasibility Studies


For further information on Merty please visit www.mertyenergy.com


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.

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 was
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).

For further information on Xtract please visit www.xtractenergy.co.uk

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