Investment update

Xtract Energy plc
14 March 2008


14 March 2008                                                           AIM: XTR
                               XTRACT ENERGY PLC
                          ('Xtract' or the 'Company')

                       PROJECT UPDATE - MEO Australia Ltd

Xtract refers shareholders to the following press releases announced 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 UPDATE

Key Points:
• 2473 Bcf Contingent Resource estimate in Greater Blackwood
• Casting basin site selection initiated to secure construction site for
  TSMP

MELBOURNE, AUSTRALIA (March 14, 2008) - MEO Australia Limited (ASX: MEO)
provides the following preliminary Contingent Resource estimates for the Greater
Blackwood structure based on initial interpretation of the Blackwood-1 drilling
results.

Blackwood-1 has confirmed 49m of gross Plover gas bearing sands to a preliminary
gas-water contact (GWC) at 3225mMD (3188m subsea). While the actual GWC has not
been finalized and may be deeper thereby increasing the potential Contingent
Resource, the GWC is considered conservative and is the basis for the Contingent
Resource calculations provided below. Blackwood-1 also encountered 13m of gross
Flamingo gas charged sands. However, MDT recovery was not successful in this
upper zone due to borehole damage and no part of the Contingent Resource
estimate includes any potential gas in the Flamingo sands.

Structure                                   Raw Gas (including CO2) Contingent
                                       Resource GIP (P50 - 'most likely'): Bcf
Blackwood                                                                 1428
Blackwood East                                                            1045
Totals                                                                    2473

'Contingent resources' are those resources which relate to quantities of
petroleum (oil or gas) which are estimated to be potentially recoverable from a
known accumulation but which are not yet considered to be commercially
recoverable. Contingent Resources may include, for example, accumulations where
evaluation of the accumulation is still at an early stage and further appraisal
drilling is required.

Based on the current assumptions of a 60% net to gross and 10% matrix porosity,
it would be reasonable to assume a 70% recovery factor, which would indicate
that Blackwood may offer approximately 1700 Bcf of raw recoverable gas.

The first methanol plant proposed for the Tassie Shoal Methanol Project requires
approximately 1400 Bcf of raw gas (including inerts) to produce 1,750,000 tonnes
per annum for 20 years of operation.

Given the encouraging results from the Blackwood-1 well and indications of a
possible gas resource adequate in volume and quality to supply a methanol plant,
MEO has accelerated the selection process to identify and secure a casting basin
site in Southeast Asia for the possible construction of the concrete gravity
base structure. The Company has also initiated the development of the Basis of
Design documentation in preparation for the commencement of Front End
Engineering and Design (FEED) studies of the Tassie Shoal Methanol Project
(TSMP) later in the year.

On December 23, 2002, the Commonwealth Minister for the Environment and Heritage
granted approval for the TSMP to construct, install, commission and operate two
1,750,000 tpa plants until November 29, 2052.

As previously advised, now that a hydrocarbon accumulation has been confirmed in
the Blackwood structure, further seismic evaluation will be undertaken and a
second well will be required to appraise and production test the Plover
sandstone reservoir. The proposed Blackwood-2 well is likely to be fully cased
and may be designed for retention as a future production well.

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

                             'ASX AND MEDIA RELEASE

                                 HERON-2 UPDATE

Key point:
• Heron-2 formally declared a hydrocarbon discovery well

MELBOURNE, AUSTRALIA (March 11, 2008) - MEO Australia Limited (ASX: MEO) advises
the market that following careful analysis of the production testing results and
electric log data through the Heron North Elang/Plover sandstone unit, formal
declaration of a discovery pursuant to clause 34 of the Petroleum (Submerged
Lands) Act 1967 has been made to the Designated Authority.

Heron-2 was drilled by Seadrill's West Atlas jack-up rig contracted to MEO for
two firm wells. The Heron-2 well penetrated the Epenarra Darwin Formation and
the deeper Elang/Plover Formation of the Heron North structure. Electric logging
indicated that both of the target reservoirs were gas saturated. Production
testing of the Heron North Elang/Plover sandstone unit recorded a maximum
interpreted hydrocarbon flow between 6 and 8 MMscf/day before operations were
halted due to the approach of Cyclone Helen. Further testing was not successful
due to the partial collapse of the well.

Given the encouraging mud log indications while drilling the Plover formation of
possible wet gas (gas with associated LPG and condensate), a significant gross
column (164m) of Plover gas saturated sands and positive electric log
interpretation, the joint venture is currently planning a re-drill of the Heron
North structure to production test the Plover sandstone unit.

The participants in the Heron-2 well and permit are:
TSP Arafura Petroleum Pty Ltd (MEO subsidiary)                              45%
Oz-Exoil Pty Ltd (MEO subsidiary)                                           45%
Petrofac Energy Developments Oceania Ltd (Petrofac Limited subsidiary)      10%

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

Andy Morrison commented: 'Today's announcement by MEO plus the recent formal
announcement of a discovery in the previous Heron-2 well demonstrate significant
progress.'

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 these drilling updates
have 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 Corporate   David Jones             [phone]
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).



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