Investment Update

Xtract Energy plc
16 August 2007

16 August 2007                                                         AIM: XTR

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

        Completion of Transaction with Wasabi Energy Ltd and New Listing

Wasabi is an Australian listed company that is involved in both traditional and
clean energy technologies and businesses. It is a diversified investor with
interests in geothermal waste/heat, uranium exploration and biodiesel and is a
company that Xtract believes has great potential with developments showing
promise for the future. The completion of the Wasabi Transaction (details of
which are set out in full below) is another step in the consolidation and
simplification of the group structure for Xtract.

Andy Morrison CEO commented 'The completion of the Wasabi Transaction is another
important step for the Company. I am very much looking forward to the next
stages in the growth of Xtract, following the achievement of various
transactional milestones which have created a simpler and more consolidated
structure from which to move forward. We are very pleased to support Wasabi and
to have increased our holding in a company which Xtract views as having an
exciting and valuable portfolio of interests'.

In addition to the completion of the Wasabi Transaction we are also pleased to
announce that Xtract is now available for trading on the open market segment of
the Frankfurt Stock Exchange (ticker R9X.FSE).

The Wasabi Transaction

The Wasabi Transaction involved the sale of Xtract's holding of 12.3 million
ordinary shares in Aviva Corporation (this holding was previously 61.5 million
pre consolidation by Aviva), together with an interest in a steel making
technology, to Wasabi Energy Ltd.

In consideration Xtract has been issued with 175 million new ordinary shares in
Wasabi Energy Ltd ('Wasabi') together with 25 million options exercisable on or
before 30 June 2008 at a price of A$0.03 per Wasabi share. Following this issue
Xtract now holds 256,511,422 Wasabi ordinary shares (representing approximately
34.5 per cent. of Wasabi's issued share capital).

Enquiries please contact:

Xtract Energy plc                
Andy Morrison, CEO                                  [phone]

Smith & Williamson Corporate Finance Limited
David Jones                                         [phone]
Azhic Basirov

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) offshore located in the heart of the gas fields.

Elko Energy

Elko is an oil & gas exploration company which has an interest in a 5,400km2
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

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.





                      This information is provided by RNS
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