Investment update

1 December 2009

AIM: XTR

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

                Operations Update - Extrem Energy AS

Xtract Energy  Plc ("Xtract")  is pleased  to provide  the  following
update on  operations in  the Alasehir  license area  at its  Turkish
associate company Extrem Energy AS ("Extrem").

Sarikiz-2 Production

Following completion of the Alasehir-1 re-entry project, the drilling
rig was  mobilized  to  the  Sarikiz-2 site  and  began  a  work-over
sequence on 25 November 2009 ready  for the start of production.  The
work-over was completed  on 30 November  2009. During the  work-over,
samples of oil and water were taken for the refinery and municipality
respectively and the "Christmas Tree"  was installed at the  surface,
ready for production.

Work on the surface facilities and on the logistical, permitting  and
commercial arrangements for production is substantially complete. The
remaining item required to commence production is a well-site heating
system to maintain the condition of  the produced crude oil which  is
expected to be of waxy composition. The heating system is expected to
be installed  in  the next  few  days  enabling natural  flow  to  be
established.

Early production  will be  received by  the refinery  at Izmir  using
temporary delivery  arrangements agreed  with them.  A joint  project
with the  refinery  operator is  under  way to  build  the  necessary
infrastructure there to receive larger  volumes as the Sarikiz  field
is progressively  brought on  stream. It  is now  expected that  full
pumped volumes from Sarikiz-2 will  be produced and delivered by  the
end of Q1  2010. Until then,  production is expected  to be based  on
natural flow.

Further information on the  actual natural flow  rate achieved and  a
revised projected pumped  rate will  be supplied once  flow has  been
stabilized.

Sarikiz-3 Drilling

Preparation for the drilling  of new well  Sarikiz-3 is ongoing.  The
land has been acquired and taken  over and clearance of the  existing
vineyard is in  progress. Preparation  of the concrete  base for  the
drilling rig will  follow, ready for  a spud date  before the end  of
December 2009. The drilling contractor is Merty Energy Inc.

The Sarikiz-3 prospect is located 525m to the east of Sarikiz-2  well
at the junction of two  intersecting 2-D seismic lines. The  proposed
total depth is 1950m. The  targeted Alasehir sandstones are  expected
to be encountered at depths  between 1570m and 1850m. Depending  upon
hydrocarbon shows and the results of  wire line log analysis, 7  inch
casing will be  run from the  surface to below  the target zones  and
cased-hole production testing will be  carried out. The well cost  is
estimated to be approximately US$3.5m  and the drilling programme  is
planned on the basis of 45 rig days.

Based on  a  2 square  km  area and  an  assumed net  productive  pay
thickness of 20m, Extrem Energy's preliminary pre-drill P50  estimate
of the recoverable oil in place from the Sarikiz-3 well is  5.75mbbl,
based on an assumed 20% recovery factor.

Extrem holds 80% of the relevant license. Xtract holds 34% of Extrem.

Alasehir/Sarikiz Field Development

The actual flow rate achieved  during the extended test at  Sarikiz-2
and the drilling results from Sarikiz-3  will do much to confirm  the
potential of the Sarikiz oil field.

In view of the high level of uncertainty over the possible extent  of
the oil-bearing structures in the wider Alasehir license area and  in
order to enhance planning of further wells after Sarikiz-3, Extrem is
evaluating a project to undertake 3-D seismic over the license  area.
An update will be  provided once a decision  on the project has  been
reached.

Commenting on  the developments,  Andy Morrison,  Chief Executive  of
Xtract said, "We are pleased to note the progress that is being  made
by Extrem. Each milestone passed is a first time for the company. The
previous  disappointment  at  Alasehir-1  reminded  us  not  to  take
anything for granted in the oil exploration business, but  investment
prospects continue  to look  attractive at  Alasehir and  across  the
Extrem portfolio."


The  information  above  relating  to  resource  estimates  has  been
provided using the  SPE standards and  includes the following  terms:
"mbbl" (million  barrels); "P50"  (mid-case scenario  in relation  to
reserve expectations).

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
34% of the issued share capital of Extrem Energy.

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 36.8%  of
Elko'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.

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