Investment update

17 July 2009

AIM: XTR

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

                   DRILLING UPDATE - Extrem Energy

Further to the announcement  made on 6 July  2009, Xtract Energy  Plc
("Xtract") is pleased to provide the following update on the progress
of the production test being carried out at Sarikiz-2 by its  Turkish
joint venture Extrem Energy A.S. ("Extrem Energy").

Following the  successful production  test  of the  interval  between
1710-1715m which  indicated an  oil flow  rate of  approximately  180
bbl/day, further successful production  tests have been completed  on
three    additional    intervals,    1646-1650m,    1652-1657m    and
1559.5-1561.5m.

Three  shallower  sandstone  intervals   between  1483m  and   1549m,
representing  24m  of  reservoir  thickness,  remain  untested.   The
interval between 1544-1549m is expected  to be perforated and  tested
today with  results becoming  available over  the weekend.  Following
this next test a decision will be taken as to which intervals will be
used to form  the basis of  the initial production  from the  Sarikiz
field. Once these intervals have  been selected, they will be  opened
so as to provide combined flow. The initial commercial oil production
is expected to meet or exceed the pre-drill estimate of 500 bbl/day.

Extrem Energy now regards the well as commercial and is proceeding to
the design and  construction of the  surface facilities to  establish
regular oil treatment and sales.

With the  benefit  of the  knowledge  gained from  Sarikiz-2,  Extrem
Energy is now  planning the  development of  the whole  field. It  is
intended that a further appraisal and production well will be drilled
on the field  during 2009 and  that production will  be increased  by
re-entering the abandoned East Sarikiz-1  well which was drilled  and
left cased in 2001 by the previous licence-holder. Comparison of  the
drilling logs from East Sarikiz-1  indicates the presence of  similar
oil-bearing sandstone layers as at  Sarikiz-2. These layers were  not
tested at the time because the focus then was on a deeper target. The
possibility of these  two additional producing  wells, together  with
the  application  of  production  enhancements  at  Sarikiz-2,  gives
confidence that Extrem Energy will be able to grow production levels.

Further progress updates will be provided as appropriate.

All operations are controlled and operated by Merty Energy,  Xtract's
joint venture partner in Extrem Energy.

Xtract holds 27% of  Extrem Energy and has  the option of  increasing
its shareholding  to  34% by  contributing  a further  investment  of
US$1.75m before 5 August 2009.

The above  information  has  been  reviewed  and  approved  by  Ongun
Yoldemir, Managing  Director  of Extrem  Energy,  who has  a  masters
degree in geological engineering and  worked as an explorationist  in
the oil and gas  sector in the  Middle East, Kazakhstan,  Azerbaijan,
and North Sea,  has over  28 years'  experience in  the resource  and
energy sector  and  is  a  member  of  the  American  Association  of
Petroleum  Geologists,   European  Association   of  Geologists   and
Engineers, the  Society  of  Exploration  Geophysicists  and  several
related Turkish institutions.

Enquiries please contact:


Xtract Energy      Andy Morrison, CEO [phone]

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


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.

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
27% of the issued share capital  of Extrem Energy and has the  option
of increasing its shareholding to 34% before 5 August 2009.

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 60% operating interest in gas-bearing license blocks  P1
and P2 in  the Dutch North  Sea. Xtract owns  approximately 35.0%  of
Elko's issued share capital.

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 3.4%  of MEO's issued  share
capital.

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.

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 17.4% of the issued share capital of Wasabi.

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