Investment Update

Xtract Energy plc
18 January 2008

18 January 2008                                                        AIM: XTR

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

                     PROJECT UPDATE - MEO Australia Limited

Xtract refers shareholders to the following press release announced in Australia
today (not the 2007 date referred to in the announcement) by MEO Australia
Limited ('MEO').

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



                           'ASX AND MEDIA RELEASE

                  HERON-2 WELL WEEKLY DRILLING REPORT - No 13

Key Points:

• Preparing to commence Epenarra production test

MELBOURNE, AUSTRALIA (January 18, 2007) -- MEO Australia Limited (ASX: MEO)
submits this drilling report for the period ending 1000 hours, January 18, 2007.
The Heron-2 well was spudded at 2230 hours (ACST) on October 12, 2007 in
Exploration Permit, NT/P68.

The rig is preparing to commence the Epenarra Darwin formation production test. 
The 9 5/8 inch production packer seal assembly has been set at 3075m just above 
facies C and the rig is currently making up the TCP (casing perforating) guns 
and running into the well with the test string. It is expected that the 9 5/8 
inch casing will be perforated tomorrow morning and production testing of the 
facies C gas charged zones of the Epenarra structure will be undertaken.

Heron-2 is being drilled by Seadrill's West Atlas jack-up rig contracted to MEO
for two firm wells. The Heron-2 well is designed as a vertical well to penetrate
and production test the Epenarra Darwin Formation and the deeper Elang/Plover 
Formation of the Heron North structure.

The Heron-1 well drilled by ARCO in 1972 intersected a 52m gas bearing column 
in the Darwin Formation (a fractured carbonate reservoir) within the 1,200 
square km mapped closure of the large Epenarra structure. Heron-1 also
reached a gas charged zone in the deeper underlying Elang/Plover horizon, which
is a secondary objective for the Heron-2 well.

The participants in the 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                10%
subsidiary)

CR 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 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 Investment Holdings Ltd, holds approximately 50.13% 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 has recently been
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