Investment Update

Xtract Energy plc
07 December 2007


7 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 WEEKLY DRILLING REPORT - No 8
Key Points:

- Joint venture decision to production test Epenarra Darwin reservoir

- Current depth: 3912m

- Pulling out of hole to change 8 1/2 inch bit

- Expect to re-commence drill to Heron North Elang/Plover Formation Sunday

MELBOURNE, AUSTRALIA (December 7, 2007) -- MEO Australia Limited (ASX: MEO)
submits this drilling report for the period ending 1000 hours, December 6, 2007.
The Heron-2 well was spudded at 2230 hours (ACST) on October 12, 2007 in
Exploration Permit, NT/P68.

On Wednesday, December 5, 2007, the NT/P68 Joint Venture partners approved
production testing of the gas charged zone of the Epenarra Darwin formation
reservoir in the Heron-2 well. Testing of Epenarra 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 well depth is currently 3912m, just above the Elang/Plover target reservoir.
The rig is currently changing the 8 1/2 inch bit to improve the drilling rate of
penetration. The rig expects to re-commence drilling on Sunday, December 9,
2007. The prognosed total depth of the Heron North Elang/Plover formation is
just below the mapped structural spill point at 4260m, which is also the depth
of the flat event noted on the 3D seismic data, and interpreted as a possible
gas-water-contact.

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 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