Investment Update

20 January 2009
AIM: XTR

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

               PROJECT UPDATE - MEO Australia Limited

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

                       "ASX AND MEDIA RELEASE

                            Zeus-1 update

Key Points:
*  Zeus-1 spudded on 17th January

*  Present operation at 06:00 hrs WSDST drilling ahead at 1,020m in
  17-1/2" hole

MELBOURNE, AUSTRALIA (January  20th, 2009) --  MEO Australia  Limited
(ASX: MEO) is pleased to advise  the following update in relation  to
Zeus-1  (MEO  35%,  Operator),  being  drilled  in  WA-361-P  in  the
Carnarvon Basin, offshore Western Australia.

Progress to 0600 hrs WSDST
The Zeus-1  well  was spudded  on  Saturday 17th  January  2009.  The
30"x20" conductor was set and cemented in place at 271m. The  17-1/2"
hole was drilled to 1,020m.

Present operation (0600 hrs WSDST)
Drilling ahead at 1,020m in 17-1/2" hole towards the planned  13-3/8"
casing point at 1,885m.

Objectives
Zeus-1 is targeting potential gas-in-place  of 15 Tcf in the  primary
Legendre sands  target  and 3.7  Tcf  potential gas-in-place  in  the
secondary Forestier sands target.

Zeus-1 & WA-361-P participants

+-------------------------------------------------------------------+
| Company                               | Equity | Remarks          |
|---------------------------------------+--------+------------------|
| North West Shelf Exploration Pty Ltd  | 35%    | Operator         |
| (Wholly owned subsidiary of MEO       |        | ASX: MEO         |
| Australia Limited)                    |        |                  |
|---------------------------------------+--------+------------------|
| Resource Development International    | 35%    | (Unlisted public |
| Limited                               |        | company)         |
|---------------------------------------+--------+------------------|
| Cue Energy Resources Limited          | 15%    | ASX: CUE         |
|---------------------------------------+--------+------------------|
| Gascorp Australia Pty Ltd             | 15%    | (Unlisted public |
|                                       |        | company)         |
+-------------------------------------------------------------------+



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

Attachment 2
Zeus-1 Well Details

DETAILS

Licence:                WA-361-P
Operator:               MEO Australia Limited
Rig:                    Songa Venus
Surface location:       Latitude: 19 deg 30 min 17.67 sec Longitude:
                        115 deg 50 min 6.63 sec Ellipsoid: GDA94,
                        GRS80
Seawater Depth:         212.4 m
Spud Date:              17th January 2009
Target Strata:          Primary: Legendre Formation
                        Secondary: Forestier Formation
Total Depth:            3655 metres (MDRT). Actual TD: 3630m (MD -
                        measured depth below the rig's rotary table -
                        RT)
Primary Target Depth:   Top Legendre Fm 3455 metres (MDRT)
Secondary Target Depth: Top Forestier Fm 3253 metres (MDRT)
Designated Authority:   W.A. Department of Industry and Resources
Reservoir Objectives:   Legendre Formation:
                        Zeus is an analogue to the adjacent Perseus
                        gas field. Determine the validity of the
                        amplitude and AVO responses observed on the
                        Rosie 3D seismic data. Positive amplitude and
                        AVO responses are seen at multiple levels
                        within the Legendre. In addition, determine
                        if there are sands which are gas bearing that
                        do not exhibit an AVO response.
                        Forestier Formation:
                        Determine the validity of the amplitude and
                        AVO responses observed in the basal
                        Forestier. This section has not been
                        penetrated in nearby wells and could contain
                        sands equivalent to the Barrow Group.



MEO Pre-drill Gas-In-Place Estimates


+----------------------------------------------+
| Target Reservoir    | Gas-in-Place Estimates |
|---------------------+------------------------|
| Legendre Formation  | 15.0 Tcf               |
|---------------------+------------------------|
| Forestier Formation | 3.7 Tcf                |
+----------------------------------------------+



Production Objectives: In a success case, hydrocarbon samples will be
                       collected by MDT, no cased-hole tests are
                       planned.
Well Design:           Zeus-1 is a vertical well. The well design is
                       to drill a 36" hole to 295mRT and set a 30x20"
                       conductor. A 13-3/8" casing string will be set
                       in a 17-1/2" hole drilled to 1910mRT. Drill a
                       12-1/4" vertical hole to TD and log."


A copy of the MEO announcement referred to above containing a map and
attachment  1  with  additional  information,  is  available  on  the
Australian Stock Exchange website: www.asx.com.au

Further information on MEO  can be found at  www.meoaustralia.com.au.
As an unquoted company, MEO is not  subject to the AIM Rules and  the
information contained in this announcement 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      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.

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 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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This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.