Investment Update

19 September 2008

AIM: XTR

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

                     INVESTMENT UPDATE - Morocco

Xtract Energy PLC ("Xtract") is  pleased to announce a joint  venture
agreement with  Alraed  Limited  Investment Holding  Company  WLL,  a
company controlled  by  His Highness,  Prince  Bandar Bin  Mohd.  Bin
Abdulrahman Al-Saud of Saudi Arabia  ("HH Prince Bandar"). The  joint
venture has  been  established  to evaluate  and  develop  oil  shale
projects in Morocco.  The joint  venture company, Xtract Energy  (Oil
Shale) Morocco SA, has recently signed a Memorandum of  Understanding
with the Office National des Hydrocarbures et des Mines ("ONHYM") for
the purposes of evaluation and  possible development of an oil  shale
deposit near  Tarfaya, in  the  south west  part of  Morocco.  Xtract
currently holds 70% of the joint venture.

The agreements cement a close  association between Xtract, HH  Prince
Bandar and ONHYM  in the  exploration, extraction and  mining of  oil
shale.

Xtract continues  to develop  its  proprietary oil  shale  extraction
technology, and  the joint  venture in  Morocco presents  a  valuable
opportunity  to  expand  the   potential  application  of  this   new
technology and to  place the Company  at the forefront  of oil  share
exploration and development in North Africa.

Andy Morrison, Chief Executive of Xtract, said "We chose to work with
HH Prince Bandar because of his tremendous experience of investing in
the Middle East and Africa and with our joint expertise, coupled with
that of ONHYM, the development prospects are very promising."

HH Prince Bandar added  that "Morocco is  a very attractive  country.
The major potential in terms of  oil shale resources is coupled  with
the highly skilled human resources available. Now with the  expertise
of ONHYM joined to that of  our partner Xtract, we have gathered  the
key factors required to turn these real opportunities into successful
projects."


Enquiries please contact:


Xtract Energy                Andy Morrison, CEO [phone]

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

Scott Harris                 Stephen Scott      [phone]
                             Ian Middleton


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


About Xtract Energy

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).

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