Investment Update

3 August 2009

AIM: XTR

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

                  INVESTMENT UPDATE - Extrem Energy

Further to the announcement made on  17 July 2009, Xtract Energy  Plc
("Xtract") is  pleased  to  announce that  the  production  test  was
completed on 30  July 2009 and  that the Sarikiz-2  well at  Xtract's
Turkish joint venture Extrem Energy A.S. ("Extrem Energy")  is  being
shut in as a production  well with commercial production expected  to
commence in October. The rig  is now being moved  to the site of  the
former East  Sarikiz-1 well  and will  test the  horizons from  which
commercial production is expected.  If successful Extrem Energy  will
have two commercial wells on stream in the fourth quarter.

The  results  of  the  production  test  at  Sarikiz-2  indicated   a
theoretical production potential of 690 bbl/day from the tested zones
and a potential of  up to 450 bbl/day  more from untested zones.  Not
all levels can  in practice  be produced  at once  due to  production
techniques. Four levels  have been selected  for initial  production.
After the results of testing, Extrem  Energy has decided to apply  an
optimised value  of initial  350 bbl/day  of production  in order  to
maximise the field  life and  the amount of  recoverable oil  through
time.

The pressure and other logging data from the production test will now
be processed, which will enable  an improved estimate of field  size.
This will  be  combined with  the  results of  a  recently  completed
geochemical survey over the wider field area. The information will be
used for  field  development and  the  site selection  for  follow-on
wells. The process for registering  Sarikiz-2 as a discovery well  is
already under way with the  Turkish authorities and the well  results
will be used to generate the applicable reserve categorisation.

Further updates will be provided as appropriate.

In addition  to  progress  at Sarikiz,  Extrem  Energy  continues  to
advance its  interests in  other licence  areas. A  short  additional
programme of  seismic  acquisition over  the  Edirne licence  in  the
Thrace Basin in western  Turkey was commenced in  the second half  of
July. As at 30 July 2009, the 75.76km project was 40% completed.  The
results  will  be  used   to  firm  up   drilling  targets  in   this
predominantly   gas-bearing   region.   A   geochemical   study    on
Adana-Siraseki  licence  has  also   been  completed  and  sent   for
analysis.

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 2.4%  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 12.6% of the issued share capital of Wasabi.

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