Investment Update

Xtract Energy plc
12 December 2007


12 December 2007                                                        AIM: XTR
                               XTRACT ENERGY PLC
                          ('Xtract' or the 'Company')

                       PROJECT UPDATE - MEO Australia Ltd

Xtract is pleased to refer shareholders to the press release below announced in
Australia by MEO Australia Ltd ('MEO'). Xtract also notes that trading in MEO's
shares on the ASX has resumed following the publication of the announcement
below.

Following the placing referred to below, Xtract will hold approximately
18.3% of the issued capital of MEO.

                             'ASX AND MEDIA RELEASE

                            PLACEMENT OF 50M SHARES

MELBOURNE, AUSTRALIA (December 12, 2007) -- MEO Australia Limited (ASX: MEO) is
pleased to advise that during the trading halt, a placement of 50 million shares
at A$1.25 per share was made to Australian, United Kingdom and European
institutional, professional and sophisticated investors raising A$62.5 million
(before costs). The placement was jointly managed by the Company's Australian
broker, Tolhurst Limited, and London broker, WH Ireland Limited. The offer was
conducted within the 15% placing capacity and was heavily over-subscribed.

Previous fund raising activities provided the Company with sufficient capital to
meet the dry hole costs of the two back-to-back appraisal wells in the current
drilling campaign. Funds raised will be applied to the following planned
activities:

• Initiation of LNG and methanol project studies including site selection to
  secure a casting basin site in SE Asia for the potential construction of the
  methanol plant and LNG tank substructures, pre-FEED, finalization of Basis of
  Design documentation and Capex reviews of the projects;

• Production testing of the gas bearing zones in the wells (refer ASX Releases
  December 5, 2007 and December 10, 2007);

• Acquisition of approximately 800 sq km of new 3D seismic to extend the
  existing 500 sq km 3D seismic coverage over the whole of the Epenarra and
  Heron structures in NT/P68. Acquisition is planned for March 2008;

• Acquisition of new 3D and 2D seismic in the recently acquired Northwest Shelf
  permits;

• Contingency for drilling cost over-runs and general working capital.

The rig is currently completing logging operations and is preparing to set the 7
inch liner to isolate the over-pressured Flamingo Formation. MEO expects to
commence drilling the 6 inch hole in the week commencing December 17, 2007.

The Company remains in a strong financial position and looks forward to a
successful outcome in the current drilling campaign, further development of the
Tassie Shoal LNG and methanol projects, and exploration of the Northwest Shelf
permits.'

An investor presentation was also announced by MEO on the ASX. A copy of the
presentation can be found on MEO's website.

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            [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.

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