Investment Update

Xtract Energy plc
28 September 2007

28 September 2007                                                     AIM: XTR

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

                               MEO Australia Ltd

Xtract announces that it has recently reduced its interest in MEO Australia Ltd
('MEO') from 22.8% to 21.3% of MEO's issued capital.

The Company's wholly owned subsidiary Cambrian Oil & Gas Plc ('COIL') has this
week sold 5 million shares in MEO at A$1.10 per share in cash to substantial
financial institutions that are, like Xtract, strong supporters of MEO and its
exploration, drilling and development plans.

Following this disposal Xtract (through COIL) retains 71,366,814 shares in MEO.


Enquiries please contact:

Xtract Energy plc                Andy Morrison, CEO     [phone]

Smith & Williamson               David Jones
Corporate Finance Limited        Azhic Basirov          [phone]
                                 
Scott Harris                     Stephen Scott          [phone]
                                 Annabel Michie

For further Information on Xtract please visit www.xtractenergy.co.uk

About MEO

The MEO business plan is centred on the development of gas-to-liquids (GTL)
projects in the Australian waters of the Timor Sea, approximately 275 km
northwest of Darwin, in an area known as Tassie Shoal. The company has secured
Australian Commonwealth Government environmental approvals for two large-scale
methanol plants (1.8 mtpa) and an LNG plant (3 mtpa) that are valid until 2052.

Tassie Shoal is an area of shallow water adjacent to the Evans Shoal gas field
and is located around 25km east of MEO's exploration permit, NT/P68. MEO mapping
has identified five large structures in NT/P68, two of which were intersected by
the Heron-1 well drilled in 1972, confirming gas columns. The resources
contained in NT/P68 provide significant valuation upside by potentially
providing a feedstock for the GTL projects as an alternative to possible third
party gas supply from nearby resources.


About Xtract Energy Plc

Xtract identifies and invests in a diversified portfolio of early stage energy
sector technologies and businesses with very significant growth potential. We
aim 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.

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.

Elko Energy

Elko is an oil & gas exploration company which has an interest in a 5,370km2
exploration and production licence in the Danish North Sea and an investment in
Dragon Energy Inc, a private Canadian company, with a development project in
Gansu Province, China.

Wasabi Energy

Wasabi is a diversified investor in renewable energy and low greenhouse emission
technologies, with interests in geothermal waste/heat, uranium exploration in
Australia's Northern Territory and biodiesel investments in Victoria.

Central Asian Interests

Xtract's Central Asian interests include a production sharing agreement with
Kyrgyzneftegaz to instigate a water injection project on the Beshkent- Togap oil
field. Xtract also holds interests in several exploration licences in the Tash
Kumyr area and in the Toktogul exploration licence.

Oil Shale

Xtract has oil shale and related petroleum product exploration rights over 
mining tenements in the Julia Creek area of Queensland and has recently been 
granted an exploration permit which gives rights to explore for oil shale in 
an area in the South of New Zealand. It is investigating the commercial 
production of hydrocarbons (crude oil) from oil shale.

Xtract is also available for trading on the open market segment of the Frankfurt
Stock Exchange (ticker R9X.FSE).






                      This information is provided by RNS
            The company news service from the London Stock Exchange