Investment Update

Xtract Energy plc
02 November 2007

2 November 2007                                                      AIM: XTR

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

                       PROJECT UPDATE - MEO Australia Ltd

Xtract is pleased to refer shareholders to the following press release announced
in Australia by MEO Australia Ltd ('MEO').

Xtract currently holds approximately 21.3% of the issued capital of MEO.



                  'HERON-2 WELL WEEKLY DRILLING REPORT - No 3


Key Points:

• 20 inch casing landed and cemented
• Currently testing and installing 15,000 PSI Blow-out Preventer stack (BOP)
• Preparing to drill 171/2 inch hole to 2200m

MELBOURNE, AUSTRALIA (November 2, 2007) -- MEO Australia Limited (ASX: MEO)
submits this drilling report for the period ending 1000 hours, November 1, 2007.
The Heron- 2 well was spudded at 2230 hours (ACST) on October 12, 2007 in 
Exploration Permit,NT/P68.


The rig completed the running and cementing of the 20 inch casing is currently
testing and installing the 15,000 PSI Blow-out Preventer stack (BOP). The 15K 
stack is required for the higher reservoir pressures predicted in the Plover 
sandstones of the Heron North structure. MEO expects to shortly commence 
drilling the 171/2 inch hole to a target depth of 2200m.

The participants in the well are:

TSP Arafura Petroleum Pty Ltd (MEO subsidiary)                           45%
Oz-Exoil Pty Ltd (MEO subsidiary)                                        45%
Petrofac Energy Developments Oceania Ltd (Petrofac Limited subsidiary)   10%

Heron-2 is being drilled by Seadrill's West Atlas jack-up rig contracted to MEO
for two firm wells and one option well. The Heron-2 well is designed as a
vertical well to penetrate and production test the Epenarra Darwin Formation and
the deeper Elang/Plover Formation of the Heron North structure. The planned
total depth of the well is approximately 4300m below sea level.

The Heron-1 well drilled by ARCO in 1972 intersected a 52m gas bearing column in
the Darwin Formation (a fractured carbonate reservoir) within the 1,200 square
km mapped closure of the large Epenarra structure. Heron-1 also reached a gas
charged zone in the deeper underlying Elang/Plover horizon, which is a secondary
objective for the Heron-2 well.'


Further information on MEO can be found at www.meoaustralia.com.au. As an ASX 
listed company, MEO is not subject to the AIM Rules and this drilling update 
has not been reviewed by a named 'qualified person' as defined and required by 
the AIM Guidance Note for Mining, Oil and Gas Companies.

Enquiries please contact:

Xtract Energy plc               Andy Morrison, CEO          [phone]

Smith & Williamson              David Jones                 [phone]
Corporate 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.

Xtract is supported by its cornerstone investor, Cambrian Mining Plc (AIM:CBM) a
diversified resource investment house which holds 51.5% of issued share capital.

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 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).





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            The company news service from the London Stock Exchange