Investment Update

20 February 2009

AIM: XTR

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

            INVESTMENT UPDATE - Elko Energy Inc. ("Elko")

Xtract refers to the text set out below of a shareholder letter  sent
yesterday to shareholders of Elko Energy Inc.

"Shareholder Update

Elko Energy Inc. ('Elko') is  pleased to provide this further  update
as part of its commitment to improve shareholder communications.

Acquisition of Oyster Energy BV

In the  Netherlands  sector  of  the North  Sea,  Elko  operates  two
adjacent gas bearing exploration  blocks, namely Block  P1 and P2  in
the Southern Permian Gas basin.  We are pleased to announce that Elko
has recently  completed the  acquisition of  Oyster Energy  BV.  This
acquisition, which was effective February 19, 2009, increases  Elko's
combined working interest in Netherlands Blocks P1 and P2 from 33% to
60%. Dutch Government partner Energie Beheer Nederland BV (EBN)  owns
the remaining 40% working interest.

The acquisition  of Oyster  resolves  the previous  lack of  a  joint
operating agreement  and enables  Elko  to proactively  progress  the
development and marketing of the  Dutch assets, including renewal  of
the P1 block  exploration licence during  2009, and of  the P2  block
exploration licence during 2010. We regard this as major step forward
in unlocking the inherent value contained in hydrocarbon resources of
these Blocks.

A National  Instrument  51-101  independent  engineering  report  was
prepared by TRACS International (the  'TRACS Report') during 2008  on
the hydrocarbon resources contained within the P1 and P2 Blocks.  The
TRACS  Report  indicates  that  there  are  more  than  250  bcf   of
hydrocarbon gas-initially-in-place  within the  Slochteren  sandstone
plus prospects  identified  which could  contain  a further  500  bcf
hydrocarbon gas-initially-in-place within the Slochteren  sandstone.
Following the Oyster acquisition Elko  has a 60% working interest  in
these hydrocarbon resources.

Business Direction

Management focus for 2009  is to concentrate on  adding value to  the
existing Dutch assets  through maturing the  technical studies  which
are  required   to  commercialize   the  existing   discoveries   and
exploration upside, to attract financing  partners for our assets  in
both the  Netherlands and  Denmark and  to facilitate  the Dutch  and
Danish licence renewal decisions.

Ø      Netherlands
The current priorities for the Netherlands business are:

*          Mature the technical definition of an integrated
  development concept for Blocks P1 and P2;
*          Assess third party processing and transportation
  infrastructure capacity and commercial terms to take gas to the
  market;
*          Develop contracting and procurement options in the current
  business environment;
*          Update economic evaluation to optimize development
  concepts and investment phasing;
*          Attract financing partners to farm out a portion of our
  60% interest of the P1 and P2 licences in due course as the
  development commercialization process matures;
*          Select optimal drilling locations on Block P1 in
  preparation for renewal of P1 licence;
*          Renew P1 licence; and
*          Commence stakeholder engagement process with Dutch
  authorities on asset development and carbon sequestration issues.

Elko is in the process  of strengthening internal staff resources  to
mature the development design and business plans for the exploitation
of the P1 and P2 assets.

Ø      Denmark
The current priorities for the Danish business are:

*          Reprocess seismic data on Chalk prospects within licence
  acreage;
*          Prepare marketing plans;
*          Market and secure additional partner(s); and
*          Prepare for licence renewal in 2010.

Business Environment

Management is  very much  aware  of the  need  to conserve  cash  and
contain operating costs  in the current  market environment.  At  the
same time it is important to position Elko for an upturn  opportunity
and a number of steps have been taken towards that goal, including:

*          Reduction in Elko office short term accommodation
  requirements securing a 37% reduction in cost;
*          Suspension of consultant contracts related to the
  preparation of IPO documentation; and
*          the interim audit review which was required to support the
  intended IPO has been cancelled.

The Board  of  Directors is  meeting  towards  the end  of  March  to
consider the  medium  term  strategy  for Elko  which  will  then  be
presented to the shareholders at  Elko's Annual & General Meeting  of
Shareholder anticipated to occur late June 2009.  Year-end financials
will be included with the  meeting materials, however in the  interim
we are pleased to  report that at year-end  December 31, 2008  Elko's
cash position was US$13.3 million.

Peter Moir
President and CEO
February 19, 2009"

Further information on Elko can be found at www.elkoenergy.com

Elko Energy Inc. is not subject to the AIM Rules and the  information
contained in  this announcement  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      Andy Morrison, CEO  [phone]

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

Scott Harris       Ian Middleton       [phone]
                   James O'Shaughnessy


About Xtract Energy

Xtract identifies and  invests in  a diversified  portfolio of  early
stage energy  sector  technologies and  businesses  with  significant
growth  potential.  The  Company  aims  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.

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

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 Ltd ("MEO")

MEO (ASX: MEO) aims to become an integrated Australian Gas-to-Liquids
("GTL") company. In 2008, MEO made significant gas discoveries in the
Australian Timor Sea,  in an area  of shallow water  known as  Tassie
Shoal.  Early  commercialisation  of  these  discoveries  is  planned
through construction of  Liquified Natural Gas  ("LNG") and  Methanol
plants and export terminals  on the off-shore  Tassie Shoal. MEO  has
already secured Australian Government environmental approvals for two
large scale (1.8  Mtpa) methanol  plants and a  3 Mtpa  LNG plant  on
Tassie Shoal. Xtract owns approximately  11.6% of MEO's issued  share
capital.

Elko Energy Inc. ("Elko")

Elko is a Canadian registered oil & gas exploration company which has
interests in exploration  and production licences  in the Danish  and
Dutch North Sea. Its major asset is  in the Danish North Sea; an  80%
interest on  26 offshore  blocks in  a 5,400  sq km  exploration  and
production licence close  to the prolific  Central Graben oil  field.
Technical work indicates the potential for significant reserves. Elko
also holds a 33% operating interest in gas-bearing license blocks  P1
and P2 in  the Dutch North  Sea. Xtract owns  approximately 35.4%  of
Elko's issued share capital.

Extrem Energy AS ("Extrem Energy")

Extrem Energy is  an exploration  and production  joint venture  with
Merty Energy of Turkey. The JV's aim is to create a new  medium-sized
oil and gas exploration and production business, initially focused on
Turkey where Merty  Energy has particular  experience and  expertise.
Extrem Energy has a portfolio of licence interests including the high
potential prospect at Candarli Bay in south-west Turkey. Xtract  owns
20% of the issued share capital  of Extrem Energy and has the  option
of increasing its shareholding to 34% before 30 June 2009.

Xtract Oil Ltd ("XOL")

Xtract's wholly owned subsidiary, XOL, is focused on the  development
of the Company's oil shale resources in Australia and the  technology
for oil extraction  from oil  shale resources. Xtract  has oil  shale
exploration rights over mining tenements  in the Julia Creek area  of
Queensland. In addition to  evaluating third party technologies,  XOL
has  been  developing  proprietary  technology  for  the   commercial
extraction of liquid hydrocarbon products from oil shale.

Xtract Energy (Oil Shale) Morocco SA ("XOSM")

XOSM is  a  joint  venture with  Alraed  Limited  Investment  Holding
Company WLL, a company controlled by His Highness, Prince Bandar  Bin
Mohd. Bin  Abdulrahman Al-Saud  of Saudi  Arabia. XOSM  has signed  a
Memorandum  of   Understanding   with   the   Office   National   des
Hydrocarbures et  des  Mines  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.

Wasabi Energy Ltd ("Wasabi")

Wasabi (ASX:  WAS)  is  a diversified  investor  in  traditional  and
renewable energy  technologies. Amongst  its listed  assets it  holds
approximately 38%  of Rum  Jungle Uranium  Ltd (ASX:  RUM) which  has
interests in uranium exploration licenses  covering some 4,150 sq  km
of  Australia's  Northern  Territory   and  approximately  12.5%   of
Greenearth Energy Ltd  (ASX:GER) which  aims to  explore and  develop
geothermal resources in Australia and  the wider Pacific Rim.  Xtract
owns approximately 19.4% of the issued share capital of Wasabi.

Zhibek Resources Ltd ("Zhibek Resources")

Zhibek Resources is an oil and gas exploration and production company
which has a 72% interest in the Tash Kumyr and Pishkoran  exploration
licences in  the  Kyrgyz  Republic. Xtract  has  entered  a  farm-out
agreement to  fund  a seismic  and  drilling programme  for  2008-09.
Xtract owns 25.0% of the issued share capital of Zhibek Resources.

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