Investment Update

17 September 2008

AIM: XTR
                          XTRACT ENERGY PLC
                     ("Xtract" or the "Company")

              INVESTMENT UPDATE - MEO Australia Limited

Xtract refers  shareholders to  the  following announcement  made  in
Australia  by   MEO   Australia  Limited   ("MEO").    Xtract   holds
approximately 13.9% of the issued capital of MEO.


                       "ASX AND MEDIA RELEASE

                       Update - Zeus-1 timing

Key Points:
* Songa Venus drilling rig remains on track to arrive on Zeus-1
  location late October
* AFR article on page 20, indicates RDI IPO on track for Hong Kong
  listing by year end


MELBOURNE, AUSTRALIA (September  17, 2008) --  MEO Australia  Limited
(ASX: MEO) is pleased to advise that Songa Offshore, the Operator  of
the Songa Venus drilling vessel has confirmed the drilling rig is  on
track in its current work program  which sees the vessel expected  to
complete its current work and arrive  at the Zeus-1 location in  late
October 2008. The Zeus-1 well is targeting the multi-Tcf Zeus play in
WA-361-P immediately  adjacent  to  the permits  containing  the  gas
fields supplying the North West Shelf Gas Project.

The company  also  draws  attention  to a  news  article  in  today's
Australian Financial Review (AFR) which states "the documentation for
RDI is expected to be finalised in a fortnight, and UBS and Macquarie
are aiming for a Hong Kong listing by the end of the year".

Investors are reminded of the strategic funding arrangements MEO  has
with RDI that were detailed in our ASX release of 4th July 2008. With
the exception of funding for the Zeus-1 well, several of the  funding
arrangements, particularly those in  relation to the company's  Timor
Sea  interests  (NT/P68  and  the  Tassie  Shoal  GTL  projects)  are
contingent upon the successful listing of RDI. MEO is heartened  that
notwithstanding difficult market conditions, the process for the  RDI
listing currently remains on track.

Jürgen Hendrich
Managing Director & CEO
MEO Australia Limited
Operator of WA-361-P"


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

For further information on MEO please visit www.meoaustralia.com.au


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) 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 was
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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