Investment Update

11 December 2008
AIM: XTR

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

                 PROJECT UPDATE - MEO Australia Ltd

Xtract refers  shareholders to  the following  announcement  released
today in Australia by MEO Australia Ltd ("MEO").

                       "ASX AND MEDIA RELEASE

                       Update on Zeus-1 timing

Key Points:

Latest Songa Venus expected release date from current well December
23rd.

MELBOURNE, AUSTRALIA (December 11th,  2008) -- MEO Australia  Limited
(ASX: MEO) is pleased to advise the following update on the timing of
drilling Zeus-1.

The latest advice MEO has  received currently forecasts a release  of
the Songa Venus  drilling rig on  approximately 23rd December  2008.
This release date remains subject to ongoing decisions in relation to
production testing and/or further drilling operations of the  Ichthys
North well.  Upon release  and acceptance of the  Songa Venus by  MEO
the rig will undertake about a six day tow to the Zeus-1 location  in
permit WA-361-P.

All regulatory approvals have been  received for Zeus-1 drilling  and
MEO is in readiness to spud Zeus-1.  All remaining casing,  equipment
and  materials  for  Zeus-1  have  been  delivered  to  Dampier   for
progressive load-out to the drilling rig by the Lady Astrid and  Lady
Caroline anchor handling  and supply  vessels.  The  Lady Astrid  has
been scheduled  to  transport the  equipment  and materials  for  the
spudding of Zeus-1 from  Broome to the Songa  Venus prior to the  rig
moving to the Zeus-1 location.

MEO is planning to mobilize supervisory personnel to the drilling rig
on the 19th December 2008 preparatory to handover of the rig.

Jürgen Hendrich
Managing Director & CEO
MEO Australia Limited
Operator of WA-361-P"

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  13.9% 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.

Oil shale projects

Australia
Xtract's wholly  owned subsidiary,  Xtract Oil  Ltd ("XOL")  has  oil
shale exploration rights  over mining  tenements in  the Julia  Creek
area of Queensland.  XOL  has been developing proprietary  technology
for the commercial extraction of liquid hydrocarbon products from oil
shale  which   could  partially   address  the   global  decline   of
conventional oil reserves with significant environmental benefits and
higher yields  over  previously employed  extraction  methods.   This
project is in 'hibernation' pending further investment.

Morocco
Xtract Energy (Oil Shale) Morocco SA ("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  and a  decision  into
whether to  conduct  an  initial pre-feasibility  study  is  pending.
 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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