Investment update

29 March 2010

AIM: XTR

                               XTRACT ENERGY PLC

                       Investment update - Extrem Energy

Further  to its announcement dated 22 March 2010, Xtract Energy Plc ("Xtract" or
"the  Company")  is  pleased  to  provide  the  following update on the drilling
operations  of its Turkish  business, Extrem Energy  AS ("Extrem Energy") in the
Alasehir licence area and on developments in the Candarli Bay licence area.

Drilling Update - Sarikiz-3

Following  completion of further  analysis of the  wire-line logs and other well
data,  Extrem Energy has identified a  number of promising levels for production
testing. The levels selected to be tested lie within the depth range 1620-1969m
and correspond to a total net pay zone of approximately 35m.

Preparations  for production testing  are well underway.  The first perforations
are  expected  to  take  place  this  week  and the operation is scheduled to be
completed in approximately one month.

Further updates will be provided as appropriate.

Licence Extension - Candarli Bay

Extrem  Energy recently  applied for  and has  been granted  an extension of its
Candarli  Bay licence until October  2012. The corresponding drilling commitment
date (by which a well should be spudded) has been extended until April 2011. The
licence commitments can be extended for a further year if required.

Candarli  Bay is located in the Aegean Sea,  close to the Aliaga oil refinery in
south-west  Turkey. There is good evidence  of a working hydrocarbon system from
the  existing well and seismic data available. The early-middle Miocene outcrops
in  the nearby  on-shore demonstrate  good source  rock potential,  with further
potential  indicated within the Eocene shales  that also provide the source rock
in the nearby Thrace basin. The reservoirs are thought to be sandstones within a
basin floor fan structure as well as shallower fractured zones of limestones.

Further  seismic work is required  to enhance existing knowledge  and to firm up
additional  drilling  prospects.  It  is  anticipated  that  this  work  will be
completed    during  2010. Initial  prognosis  would  suggest  that  prospective
resources  of up to 780 mbbls  may be in place  in the licence area according to
management estimates.

Appointment of Farm-out Adviser - Candarli Bay

Extrem Energy is pleased to advise that it has recently entered into a Marketing
Services        Agreement        with       IndigoPool       (www.indigopool.com
<

http://www.indigopool.com/>). Under the terms of the agreement, IndigoPool will
provide  marketing and  advisory services  directed towards  finding one or more
farm-in  partners to join with Extrem Energy in the exploration and appraisal of
the Candarli Bay licence.

IndigoPool,   a   Schlumberger   company,  provides  advisory  services  to  the
international  oil and  gas community.  IndigoPool has  advised a diverse client
base,  including super-majors,  independents, major  resource holders, financial
institutions, and small, emerging companies. IndigoPool covers the international
market and leverages the global presence of Schlumberger, which operates in over
80 countries  and provides an  extensive network of  executive relationships and
local expertise..

The information above relating to resource estimates has been provided using the
SPE  standards  and  includes  the  following  terms:  "mbbl" (million barrels);
"prospective resources" (those quantities of petroleum which are estimated, on a
given date, to be potentially recoverable from undiscovered accumulations).

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.

Xtract  holds  50% of  the  equity  of  Extrem  Energy  through  a  wholly-owned
subsidiary.


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 50% 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 licence blocks
P1  and P2  in the  Dutch North  Sea. Xtract  owns approximately 50.0% 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 exploration  licence in the Kyrgyz Republic.
Xtract has entered a farm-out agreement to fund a seismic and drilling programme
for 2008-10. 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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