Investment Update

17 July 2008
AIM:XTR

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

                 PROJECT UPDATE - MEO Australia Ltd

Xtract refers shareholders to  the following press release  announced
in Australia by MEO Australia Ltd ("MEO"). Xtract holds approximately
13.9% of the issued capital of MEO.

                       "ASX AND MEDIA RELEASE

            SONGA VENUS RIG CONTRACTS EXECUTED FOR ZEUS-1

Key Points:
* Rig contracts have been executed for Songa Venus to drill Zeus
  Prospect
* Positive amplitude and AVO responses confirmed in multi-Tcf Zeus
  prospect

MELBOURNE, AUSTRALIA (July 16, 2008)  -- MEO Australia Limited  (ASX:
MEO) is pleased to advise that all contracts have been executed  with
Australian Drilling Associates  and Songa  Offshore Pte  Ltd for  the
Songa Venus semi-submersible drilling rig,  to drill the Zeus-1  well
in WA-361-P, in late October 2008.

On 4  July 2008,  MEO  announced a  farmout to  Resource  Development
International Limited (RDI) whereby RDI can earn a 35%  participating
interest in  WA-361-P by  funding  up to  3  wells, the  first  being
Zeus-1. RDI will fund 80% of Zeus-1 well costs to a cap of  US$31.25M
and 53% of  any well costs  thereafter. RDI will  fund 100% of  MEO's
share of costs for  the next two wells  in a success case,  otherwise
100% of MEO's share of costs for a second well.

The Company has completed reprocessing  and analysis of the Rosie  3D
survey originally acquired by Western  Mining in 1997, which  covered
the majority of the Zeus feature. New 3D seismic was also acquired by
MEO in November 2007 over the western extensions of Zeus.

Bright amplitude anomalies, or soft  kicks have been demonstrated  in
the interpreted Legendre  formation sandstones of  the Zeus  prospect
that are  also observed  in the  gas bearing  Legendre sands  of  the
nearby Perseus Gas Field.

MEO also recovered the offset gathers form the Rosie 3D to  undertake
AVO (amplitude variation with offset) analysis. Class 3 AVO responses
were confirmed  within the  interpreted Legendre  sandstones at  Zeus
that have a similar  signature to the AVO  responses modelled in  the
gas bearing sands at Perseus-1.

C.R. Hart
Managing Director
MEO Australia Limited
WA-361-P Operator

BACKGROUND:

On 25 October 2007, MEO secured a 60% participating interest in  this
highly prospective  exploration  permit  via  a  seismic  acquisition
option and assumed the role as  Operator for the permit. MEO met  the
seismic acquisition obligation by  funding the seismic commitment  in
the permit and has elected to fund 100% of the cost of a single  well
in WA-361-P, so that up to a 70% interest can be earned. However,  if
Cue Energy (ASX: CUE) and Gascorp (unlisted) each elect to pay 5%  of
the cost of a single  well in the permit  by September 10, 2008,  the
MEO interest  in  WA-361-P  would  remain  at  60%  and  the  funding
obligation reduces to 90%.
The respective participating interests in the permit post drilling
Zeus-1 will be as follows:

+-------------------------------------------------------------------+
|        Permit         |    MEO     | RDI | Cue Energy |  Gascorp  |
|       WA-361-P        | Australia  |     | Resources  | Australia |
|                       | (Operator) |     |            |           |
|-----------------------+------------+-----+------------+-----------|
| Interests if Cue &    |    25%     | 35% |    20%     |    20%    |
| Gascorp each fund 5%  |            |     |            |           |
| of Zeus-1             |            |     |            |           |
|-----------------------+------------+-----+------------+-----------|
| Interests if MEO and  |    35%     | 35% |    15%     |    15%    |
| RDI fund 100% of      |            |     |            |           |
| Zeus-1                |            |     |            |           |
+-------------------------------------------------------------------+

"

Further information on MEO can be found at www.meoaustralia.com.au.

Enquiries please contact:


Xtract Energy plc            Andy Morrison, CEO [phone]
Smith & Williamson Corporate David Jones         [phone]
Finance Limited              Azhic Basirov
Scott Harris                 Stephen Scott      [phone]
                             Annabel Michie


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

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.

MEO Australia
MEO is focused on developing  gas-to-liquids ("GTL") projects in  the
Timor Sea Australia,  in an  area of  shallow water  known as  Tassie
Shoal. It has secured Commonwealth Government environmental approvals
for two  large  scale  (1.8  Mtpa)  methanol  plants  (50  per  cent.
interest) and a 3 Mtpa LNG  plant (100 per cent. interest) which  are
adjacent to the Evans Shoal gas field.

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 was
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).

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