Investment Update

Xtract Energy plc
11 March 2008

11 March 2008                                                           AIM: XTR

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

                       PROJECT UPDATE - MEO Australia Ltd

Xtract refers shareholders to the following press release announced today in
Australia by MEO Australia Ltd ('MEO').

Xtract currently holds approximately 15.7% of the issued capital of MEO.


                             'ASX AND MEDIA RELEASE

                 BLACKWOOD-1 WELL WEEKLY DRILLING REPORT - No 6

Key points:

•MDT testing recovers hydrocarbons to surface

•Balckwood-1 formally declared a discovery well

•Blackwood-1 P&A'd and West Atlas rig to be released later today

MELBOURNE, AUSTRALIA (March 11, 2008) - MEO Australia Limited (ASX: MEO) submits
this drilling report for the period ending 1100 hours March 11, 2008.
Blackwood-1 was spudded at 1830 hours (ACST) on February 1, 2008 in Exploration
Permit NT/P68.

The rig has successfully completed a series of logging runs, including the
recovery of hydrocarbons to surface by MDT (Modular Dynamics Testing) down-hole
sampling. Additionally, a number of core samples through the column have been
obtained. The gas, core samples and log data are currently being analysed by
specialist petrophysical contractors. Initial gas analysis conducted on the rig
has confirmed that the gas is relatively dry and contains CO2 levels in the 25%
to 30% range (very similar to Evans Shoal gas), which is eminently suitable for
methanol production.

Given the recovery of hydrocarbons to surface and strong electric log evidence
of a hydrocarbon column in the Plover sandstone formation of the Blackwood
structure, formal declaration of a discovery pursuant to clause 34 of the
Petroleum (Submerged Lands) Act 1967 has been made to the Designated Authority.

The Blackwood-1 was drilled by Seadrill's West Atlas jack-up rig. The B
lackwood-1 wildcat well is being 100% funded as a sole risk, exclusive operation
by MEO.

The participants in the Blackwood-1 well are:

TSP Arafura Petroleum Pty Ltd (MEO subsidiary)                 50%    
Oz-Exoil Pty Ltd (MEO subsidiary)                              50%    

C.R.Hart, Managing Director
MEO Australia Limited
NT/P68 Operator'

Further information on MEO can be found at www.meoaustralia.com.au. As an ASX
listed company, MEO is not subject to the AIM Rules and this drilling update has
not been reviewed by a named 'qualified person' as defined and required by the
AIM Guidance Note for Mining, Oil and Gas Companies.


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 together with its wholly owned
subsidiary Cambrian Investments Holdings Limited holds approximately 50.12% of
the issued share capital of the Company.

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).




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