Investment Update

6 November 2009

AIM: XTR

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

                  Investment Update - Extrem Energy


Xtract  Energy  Plc  ("Xtract")  provides  the  following  update  on
operations in the Alasehir licence area at its Turkish joint  venture
Extrem Energy A.S. ("Extrem Energy").

Alasehir-1 Production Test

As announced on 21 September 2009, the Alasehir-1 well was re-entered
on 19 September with a view to testing production from five intervals
and, if successful,  combining it  with production  planned from  the
Sarikiz-2 well. On  5 November,  Extrem Energy took  the decision  to
suspend  further  testing  work  on  the  well.  Unfortunately,  well
conditions encountered were worse than expected and several  attempts
to repair the cement  bonds were not successful.  Some oil and  water
was produced from early attempts at production testing in two of  the
five intervals,  but  poor well  conditions  meant that  it  was  not
possible to determine with any  confidence the actual composition  of
the reservoir fluids.  Delay was encountered  in awaiting  specialist
tools, but these did not in the end provide a solution.

The failure of the production test is inconclusive as to the presence
or not  of commercial  oil at  Alasehir  as it  was not  possible  to
isolate the  target  intervals to  test  them. It  is  therefore  not
possible to provide an estimate of  the oil in place in the  Alasehir
part of the field at this time. Extrem Energy will review alternative
approaches for the exploration and appraisal of the Alasehir part  of
the field in light of this development.

In view of the  difficulties faced at  Alasehir-1, Extrem Energy  has
decided to next drill a new well Sarikiz-3 on the Sarikiz part of the
field rather than carry out the previously announced re-entry of East
Sarikiz-1. This will enable the drilling rig to catch up time lost at
Alasehir-1. If it is  decided to re-enter East  Sarikiz-1 at a  later
date, a cheaper  work-over rig may  be used. An  update on plans  for
Sarikiz-3 will be provided as soon as possible.

Sarikiz-2 Production

On a  brighter  note,  preparation  for  commercial  production  from
Sarikiz-2 has  advanced  considerably since  the  last update  on  27
August 2009. Separation and storage  facilities required at the  well
site are in place and discussions  with the Tupras refinery at  Izmir
have confirmed their  willingness and  ability to buy  the crude  oil
produced.  The  necessary  government   permits  for  extended   test
production have been applied for and  are expected to be in place  to
enable production  to  commence  in  the  second  half  of  November.
Although the  commencement  of  production is  a  little  later  than
originally expected, its  start will nevertheless  mark an  important
milestone for Extrem Energy.

Alasehir/Sarikiz Field Development

In order to help inform decision-making by Xtract in relation to  the
Alasehir concession,  Xtract  commissioned a  recognised  independent
expert firm to  make an  initial evaluation of  work to  date on  the
Alasehir concession area. The work was conducted during October  2009
and included site  visits to  Alasehir, data  review and  discussions
with partner Merty Energy.

In their report, the independent experts acknowledged that  Sarikiz-2
represents an interesting new discovery and that the well has  proven
the presence  of  an active  petroleum  system in  the  basin  whilst
cautioning that much remains  to be done to  determine the extent  of
the fields and therefore before long-term commercial projections  can
be made. On the  basis of the data  supplied by Extrem Energy  during
the visit of the experts,  the experts estimated the P50  prospective
resources to be 96mbbl oil in place in the Sarikiz field and  applied
a recovery factor of 14% resulting in a corresponding 13mbbl estimate
for recoverable  oil. These  estimates are  significantly lower  than
Extrem Energy's previously published estimates of P50 oil in place of
371mbbl and recoverable oil of 74mbbl  based on a recovery factor  of
20%.  In addition  to the different  recovery factors, the  principal
reasons for the differences lie  in the assumptions made in  relation
to: (i) mean  thickness of oil  bearing areas (Extrem  Energy -  50m;
Expert -  25m); and  (ii) the  mean  area of  the oil  bearing  field
(Extrem Energy - 13km2;  Expert - 10km2). Following  a review of  the
expert's report,  Extrem  Energy  has confirmed  its  own  previously
published estimates  and  it  should  be  noted  that  until  further
exploration and appraisal  is conducted within  the concession  area,
any volumetric estimates of oil in place are subject to a high degree
of uncertainty. The  assessments provided by  both Extrem Energy  and
the independent expert are based  on a geological model arising  from
seismic and geochemical analysis that has not yet been validated  (or
invalidated) by drilling data.

The scope of work required  of the expert did  not amount to a  fully
fledged "Competent Persons Report". It is intended that such a report
including the applicable resources  categories and estimates will  be
prepared in early 2010, once production is established.

In the opinion of the independent experts, Xtract has an  interesting
and capable partner  in Merty Energy,  but Xtract needs  to play  its
full role as  a non-operating  partner to ensure  success. Steps  are
already being taken to strengthen  operating procedures and to  start
to build an independent management team at Extrem Energy.

Further updates will be provided as appropriate.

The  information  above  relating  to  resource  estimates  has  been
provided using the  SPE standards and  includes the following  terms:
"mbbl" (million  barrels); "P50"  (midcase  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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