Investment update

1 July 2009

AIM: XTR

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

                  INVESTMENT UPDATE - Extrem Energy

Further to the announcement made on 22 June 2009, Xtract Energy Plc
("Xtract") is pleased to confirm that on 30 June 2009, it increased
its investment in its Turkish joint venture Extrem Energy A.S.
("Extrem Energy") through the subscription of US$1,750,000 for an
additional 7% equity in the business, bringing its total holding in
Extrem Energy to 27%. The remaining half of the optional subscription
is expected to be completed on or before 5 August 2009 upon the
satisfactory completion of certain conditions relating to the ongoing
production test at Sarikiz-2 and the completion of administrative
procedures in connection with the additional share issue.

The additional subscription is an important vote of confidence in the
prospects for Extrem Energy in its current operations at Sarikiz-2
and in the development of its promising licence portfolio in Turkey.

Sarikiz-2 Production Test

The Production Test is continuing.

Test oil production from the interval between 1741m and 1746m was
found to be associated with a volume of carbon dioxide. Whilst
production could be established from this level, it is believed that
other levels will not have the same association and will therefore be
given preference for early production. A further 7 intervals at
depths between 1545m and 1733m remain to be tested. The next
perforation is expected to take place today.

Further progress updates will be provided as appropriate.

Other Portfolio Developments

Extrem Energy holds a portfolio of seven license interests in Turkey.
Following recent processing and interpretation of seismic surveys at
Edirne in north-west Turkey and at Siraseki in the south-east of the
country, a number of promising oil and gas prospects have been
identified. Together with the development of Sarikiz and the
neighbouring Alasehir fields, Extrem Energy is building a very
promising pipeline of drill-ready targets.

All operations are controlled and operated by Merty Energy, Xtract's
joint venture partner in Extrem Energy.

Xtract now holds 27% of Extrem Energy and has the option of
increasing its shareholding to 34% by contributing a further
investment of US$1.75m before 5 August 2009.

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.

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 6.0%  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
27% of the issued share capital  of Extrem Energy and has the  option
of increasing its shareholding to 34% before 5 August 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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