Investment update

2 June 2009

AIM: XTR

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

                     INVESTMENT UPDATE - Wasabi

Xtract refers to the announcement set out below released today in
Australia by Wasabi. Xtract holds approximately 17.4% of the issued
share capital of Wasabi.

"2 June 2009

The Manager
Australian Stock Exchange Limited (ASX)
Company Announcements Office

Dear Sir/Madam

The directors of Wasabi are pleased to announce the details of a
non-renounceable entitlement issue on the basis of one (1) Preference
Share for every two (2) Ordinary Shares held by Shareholders
registered at 5.00pm (Perth time) on 12 June 2009 at an issue price
of 1 cent per Preference Share (and convertible into 1 Ordinary Share
together with 1 free attaching Option on the basis of one (1) Option
for every one (1) Preference Share converted) (Rights Issue).

The funds raised under the Rights Issue will be utilized to make
further investment in Global Geothermal Limited and Australian
Renewable Fuels. In addition the Company will repay its outstanding
convertible notes from the proceeds. The holders of the convertible
notes are underwriting the Rights Issue.

The Rights Issue will result in the issue of up to approximately
460,800,000 Preference Shares in the Company or 498,300,000
Preference Shares if all options on issue which would not otherwise
participate are exercised prior to the Record Date to enable their
holders to participate in the Rights Issue.

The Rights Issue is fully underwritten by Pekwey Pty Limited, Napier
Holdings Services Limited, Mining and Rural Investments Limited,
Chris Kyriakou, Fifth Avenue Capital Inc, Osiris Capital Investments
Pty Ltd and Sassey Pty Ltd.

The prospectus relating to this Rights Issue (Prospectus) has been
lodged with the Australian Securities and Investment Commission and
ASX and is available on the ASX website at ww.asx.com.au for
inspection. The timetable and important dates of the issue are set
out below:


Lodgement of Prospectus and Appendix 3B                   2 June 2009
Notice sent to shareholders and eligible optionholders    4 June 2009
Ex Date                                                   5 June 2009
Record Date for determining entitlements                 12 June 2009
Prospectus dispatched                                    15 June 2009
Closing Date of Offer                                    29 June 2009
Notify ASX of under-subscriptions                        30 June 2009
Despatch date/Shares entered into shareholders security   3 July 2009
holdings


The issue will raise approximately $4,608,000.

The rights attaching to the Preference Shares are summarised as
follows:


  * If the Company declares a dividend, the Preference Share will be
    entitled to a fixed preferential dividend of 7%, to be satisfied
    by the issue of Ordinary Shares;
  * The Preference Shares are convertible into one (1) Ordinary Share
    and one (1) unlisted Option to acquire an Ordinary Share at 1
    cent;
  * If no dividend is declared in a 12 month period, the conversion
    of Preference Shares into Ordinary Shares will be increased by 7%
    per annum; and
  * The Preference Shares automatically convert into Ordinary Shares:

       * if the Ordinary Shares of the Company trade above 1.5 cents
         for more than 14 days consecutively within 12 months from
         the issue of the Preference Shares; or
       * if the Ordinary Shares of the Company trade above 2 cents
         for more than 14 days consecutively within 24 months from
         the issue of the Preference Shares; or
       * if the Ordinary Shares of the Company trade above 2.5 cents
         for more than 14 days consecutively within 36 months from
         the issue of the Preference Shares; or
       * at the expiration of 3 years from the date of issue of the
         Preference Shares.

  * The Preference Shares may be redeemed at the option of the
    Company.


The capital structure of the Company on completion of the issue will
be as follows:

+-------------------------------------------------------------------+
|                             | Number                              |
|-----------------------------+-------------------------------------|
| Shares on issue at date  of | 881,640,445                         |
| Prospectus                  |                                     |
|-----------------------------+-------------------------------------|
| Maximum   Shares    offered | 460,800,000                         |
| pursuant to the Offer       |                                     |
|-----------------------------+-------------------------------------|
| Total Shares on issue after | 881,640,445 Ordinary Shares         |
| completion of the offer     | 460,800,000 Preference Shares which |
|                             | may be converted into Ordinary      |
|                             | Shares                              |
+-------------------------------------------------------------------+


In calculating entitlements  under the  Entitlement Issue,  fractions
will be rounded up to the nearest whole number.

The Offer is not being made, and no Preference Shares will be  issued
to, any  Shareholders  or  Eligible  Optionholders  whose  registered
address is in  a country  other than  Australia, New  Zealand or  the
United  Kingdom  for  the  reasons  given  in  the  Prospectus.  This
Prospectus is being sent  to Foreign Securityholders for  information
purposes only. No  Entitlement and  Acceptance Form will  be sent  to
Foreign Securityholders. Shareholders and Eligible Optionholders  who
are eligible to participate should read the Prospectus carefully.

Yours Sincerely


John Byrne
Chairman"

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  11.6% 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 60% operating interest in gas-bearing license blocks  P1
and P2 in  the Dutch North  Sea. Xtract owns  approximately 35.0%  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 17.4% 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.