Investment Update

10 February 2009

AIM: XTR

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

               PROJECT UPDATE - MEO Australia Limited

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

                       "ASX AND MEDIA RELEASE

                        Zeus-1 weekly update

Key Points:


  * 12-1/4" hole drilled to 3,290m
  * Expect to intersect primary target and total depth in next 24
    hours


MELBOURNE, AUSTRALIA (February 10th, 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 0730 hrs WSDST
Since the last report, the rig was secured as a precautionary measure
due to the proximity of the tropical low that subsequently developed
into Tropical Cyclone Freddy. Re-manning of the rig commenced on
Friday 7th. A total of 6 days drilling time was lost due to weather
related downtime.

Drilling operations resumed at 2,380m in 12-1/4" (311mm) hole early
yesterday and at 0730 (WSDST) this morning had progressed to a depth
of 3,290m. The Top Muderong Formation was intersected within 5m of
prognosis.

Present operation
Drilling ahead at 3,290m. The primary objective Legendre sands are
expected to be intersected at approximately 3,455m within the next 24
hours and planned total depth of approximately 3,650m within the same
time-frame, barring any unforseen delays.

Objectives of Zeus-1
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 ASX: MEO |
| (Wholly owned subsidiary of 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"

A copy of the MEO announcement referred to above containing maps  and
attachments  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 ASX quoted 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  13.6% of MEO's issued  share
capital. For  the  year  ended 30  June  2008,  MEO made  a  loss  of
approximately A$1.9 million and as at that date it's net asset  value
was approximately A$153.9 million.

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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solely responsible for the content of this announcement.