Drilling Update

19 December 2008
AIM: XTR

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

                   DRILLING UPDATE - EXTREM ENERGY

Further to the announcement made on 9 December 2008, Xtract  provides
the following  results for  the Sarikiz-2  well in  Turkey which  was
recently drilled on behalf of  Extrem Energy A.S. ("Extrem  Energy").
Please also refer to the pre-drill estimates which were announced  by
the Company on 16 September 2008.

Following the  completion of  the logging  procedures, 23  levels  of
sandstone were  determined to  have producible  oil with  thicknesses
between 1m and  12m. Of these,  12 levels with  a combined  reservoir
thickness  of  75m  will  be  tested  during  flow  tests  and  trial
production  now  scheduled  for  April  2009.  The  total   reservoir
thickness encountered greatly exceeded the pre-drill estimate of  10m
or more  and  therefore  underpins  a  significant  increase  in  the
estimated oil in place.  Based only on the  producible area from  the
well at 0.3 km2, the oil in place is estimated (P50) to be  16.5mbbl.
With the  expected  recovery factor  upgraded  from 20%  to  35%  and
permeability also upgraded to  10-80md from pre-drill estimates,  the
recoverable oil in place from the single well is now estimated to  be
5.8mbbl. If  repeated  across the  estimated  2.0km2 of  the  Sarikiz
field, the total  oil in place  would be 110mbbl,  compared with  the
pre-drill estimate of 16mbbl,  and the corresponding total  estimated
recoverable oil from the 2.0km2 field would be 38mbbl.

Following the successful drilling campaign, Extrem Energy intends  to
conduct test production  in April 2009.  To test the  12 levels  will
take approximately one month.  During the early  part of 2009,  field
development plans and engineering designs for the surface  facilities
for production will be prepared. Production from the well is expected
to be at least 500b/d. Laboratory  reports on the quality of the  oil
are  pending,  so  estimates  remain  in  accordance  with  pre-drill
estimates of between 31 and 37 API oil.

Extrem Energy  holds an  80% economic  interest in  the licence.  The
remaining 20% is held by Petrako Petrol Gas and Industrial Co. Xtract
currently holds 20% of Extrem Energy and has the option of increasing
its shareholding  to  34% by  contributing  a further  investment  of
US$3.5m before  June  2009. Xtract's  net  interest in  Sarikiz-2  is
therefore currently 16%, rising to 27.2% if the option is exercised.

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

Further progress updates will be provided as appropriate.

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 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

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  13.9% 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 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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