Investment update

Xtract Energy plc
06 December 2007

6 December 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
information announced in Australia by MEO Australia Ltd ('MEO').

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

                              'HERON-2 WELL UPDATE
           JOINT VENTURE DECISION TO PRODUCTION TEST EPENARRA DARWIN
                                   RESERVOIR

MELBOURNE, AUSTRALIA (December 5, 2007) -- MEO Australia Limited (ASX: MEO)
advises the market that the NT/P68 Joint Venture partners have today approved
production testing of the gas charged zone of the Epenarra Darwin formation
reservoir in the Heron-2 well.

The participants in the Heron-2 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%

The drilling update released on November 27, 2007 advised that the West Atlas
rig had successfully acquired data from three planned log suites and recovered
18 rotary side-wall core samples for detailed petrophysical analysis. Processing
and analysis of this extensive data suite was required before the Joint Venture
partners were able to commit to the Epenarra production testing and approve the
substantial additional investment.

Results of the drilling, log and core sample interpretation of the Darwin
formation indicate:

• gas saturation recorded over entire 50 metres (3109m - 3159m) of facies C;
• no carbon dioxide recorded by mud gas detection systems while drilling;
• initial mud log indications while drilling suggest wet gas;
• primary porosity in facies C ranging between 5% and 12%;
• four major open fracture sets interpreted from Sonic Scanner;
• multiple open secondary fractures noted in side-wall core samples;
• in the absence of a full diameter core, facies C fracture permeability is
  inferred in the multi- darcy range.

The results correlate closely to the Heron-1 well (2.7 km away) providing
confidence in potential reservoir continuity. Correlation with the inversion
data obtained from the 3D seismic data provides further confidence in predicting
reservoir continuity. The modern logging suite obtained in Heron-2 confirmed the
porosity and permeability assumptions used in MEO's previous Contingent Resource
calculations.

Production testing of Epenarra is being undertaken to determine gas quality and
reservoir productivity, confirming that a recoverable resource is present.
Testing of this zone can only occur after the completion of drilling and
possible production testing (subject to separate Joint Venture approval) of the
underlying Heron North Elang/Plover target reservoir.

The rig is currently drilling the 81/2 inch hole through the lower sections of
the Flamingo formation, which is immediately overlying the Heron North Elang/
Plover objective. A further report describing current drilling operations will
be made later in the week in the regular weekly drilling report.'

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 Corporate   David Jones
Finance Limited                Azhic Basirov           [phone]
                               
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 approximately 50.41% 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).




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