Investment update

Xtract Energy plc
07 February 2008

7 February 2008                                                         AIM: XTR

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

                       PROJECT UPDATE - MEO Australia Ltd

Xtract refers shareholders to the following press release announced today in
Australia by MEO Australia Ltd ('MEO').

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

                             'ASX AND MEDIA RELEASE

                 BLACKWOOD-1 WELL WEEKLY DRILLING REPORT - No 2

Key Points:
•Drilled 26 inch hole to 460m
•20 inch casing landed and cemented
•BOP fitted and tested
•Drilling 171/2 inch hole to 1265m

MELBOURNE, AUSTRALIA (February 7, 2008) - MEO Australia Limited (ASX: MEO)
submits this drilling report for the period ending 1000 hours, February 7, 2008.
Blackwood-1 was spudded at 1830 hours (ACST) on February 1, 2008 in Exploration
Permit NT/P68.

The rig completed the cementing of the 20 inch casing to 455m and has installed
and tested the Blow-out Preventer stack (BOP). The rig is currently drilling the
17 1/2 inch hole to a section target depth of 1265m, where the 13 3/8 inch
casing string will be landed.

The estimated depth of the Blackwood structure Top Plover formation target
reservoir is 3351m.

Blackwood-1 is being drilled by Seadrill's West Atlas jack-up rig contracted to
MEO for two firm wells. The Blackwood-1 wildcat well is being 100% funded as a
sole risk operation by MEO. The well is designed as a vertical well to
penetrate, log and recover gas samples in the Plover Formation of the Blackwood
structure.

The participants in the Blackwood-1 well are:

TSP Arafura Petroleum Pty Ltd (MEO subsidiary)  50%
Oz-Exoil Pty Ltd (MEO subsidiary)               50%

C.R. 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 Investments Holdings Limited holds approximately 50.12% 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