Investment Update

22 October 2008

AIM: XTR

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

                   CENTRAL ASIA INVESTMENT UPDATE

Xtract is pleased to announce that Santos International Holdings  Pty
Ltd ("Santos"),  a  subsidiary  of  Santos  Ltd,  Australia's  second
largest oil and  gas company,  has entered a  farm-in agreement  (the
"Agreement")  with  Xtract  in  relation  to  Xtract's   wholly-owned
subsidiary, Zhibek  Resources Limited  ("Zhibek"). The  Agreement  is
subject to certain conditions which Xtract believes will be satisfied
in the near future.

Under the  Agreement,  Santos is  funding  up to  US$8.5  million  of
Zhibek's near-term exploration programme, which includes a 2D seismic
programme over a number of licence areas in the Fergana basin area in
the Kyrgyz Republic, to earn a   75% interest in Zhibek. The  seismic
programme is  expected  to  commence  shortly  after  the  conditions
referred to  above have  been  satisfied or  waived. If  the  seismic
results are in line  with expectations, a well  is planned for  2009.
Santos will assume operatorship and control of Zhibek.

Xtract will retain  representation on  the Board of  Zhibek and  will
contribute up to  US$1.5 million  to Zhibek's funding  in the  latter
stages of the  current exploration  programme and  may contribute  to
Zhibek's future exploration and development programs.

As part of re-arranging  its Central Asian investments,  commitments,
and staffing, Xtract has ceased  its involvement in development of  a
water injection project at the Beshkent-Togap oil field in the Kyrgyz
Republic.

Upon  completion  of  the  above  agreement  with  Santos,   Xtract's
participation in the Kyrgyz Republic will be focused on its  minority
interest in Zhibek.


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


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

About Santos

For further information on Santos please visit www.santos.com

About Zhibek Resources

Zhibek is an oil  and gas exploration and  production company and  is
currently a wholly owned subsidiary of Xtract. Zhibek's activities to
date have been located in the  Kyrgyz Republic in Central Asia  where
it holds a 72% controlling interest in KNG Hydrocarbons 28% is  owned
by the Government-controlled  petroleum company, JSC  Kyrgyzneftegaz.
KNG Hydrocarbons holds two licence areas in the oil and gas producing
Fergana Basin area of the Kyrgyz Republic: the Tash Kumyr licence and
the Pishkaran licence. Tash Kumyr has a conceptual lead that will  be
the initial focus of the  exploration program to be undertaken  under
by KNG Hydrocarbons - under management by Santos.

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.

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")
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  14.2% of MEO's issued  share
capital.

Elko Energy ("Elko")
Elko is a Canadian registered oil & gas exploration company which has
an interest in exploration and production licences in the Danish  and
Dutch North Sea. Its largest 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.

Oil Shale
Xtract's wholly owned subsidiary, Xtract Oil Ltd, 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. Xtract is also 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.

Wasabi Energy
Wasabi Energy is a diversified investor in traditional and  renewable
energy technologies. It holds approximately 38% of Rum Jungle Uranium
Ltd (ASX: RUM) which has  interests in exploration licenses  covering
some 4,150 sq km  of Australia's Northern  Territory and has  entered
into agreements which will give it rights to explore for uranium over
a further 3,330 sq km. Xtract owns approximately 19.4% of the  issued
share capital of Wasabi Energy.

Turkish Joint Venture
Xtract has entered an  agreement with Merty Energy  of Turkey for  an
investment in a new exploration and production joint venture. The 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.  Xtract owns  20.0% of  the
issued share  capital of  the joint  venture but  has the  option  of
increasing its shareholding to 34.0% before 30 June 2009.

Central Asian Interests
Xtract's Central Asian  interests comprise its  investment in  Zhibek
Resources Limited, as described above.

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