Investment update

Xtract Energy plc
23 November 2007

23 November 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 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 6
Key Points:
• Well has penetrated upper half of the Epenarra Darwin Formation
• Gas shows observed in mud returns in upper Darwin Formation
• Currently tripping out to change 12 1/4 inch bit

MELBOURNE, AUSTRALIA (November 23, 2007) -- MEO Australia Limited (ASX: MEO)
submits this drilling report for the period ending 1000 hours, November 23,
2007. The Heron-2 well was spudded at 2230 hours (ACST) on October 12, 2007 in
Exploration Permit, NT/P68.

The Top Darwin Formation was encountered 62m higher than prognosed (3062m). The
well depth is currently 3151m and the rig is tripping out to change a worn bit.
MEO expects to start re-drilling the 121/4 inch hole through Facies C of the
Epenarra Darwin Formation to a section target depth of 3440m later today.

Elevated gas readings have been recorded in the mud returns through the upper
section of the Darwin Formation and mud weights were increased accordingly.
While these observations are encouraging, the Company stresses that until the
section drilling has been completed, testing undertaken, including analysis of
the log data to confirm the development of a fracture system and permeability in
the section, and hydrocarbons recovered, MEO is unable to confirm gas quality or
that a recoverable resource is present in the Epenarra structure.

An extensive log suite, including borehole image logging is planned to be
recorded from the section TD, through the Darwin Formation to the 13 3/8 inch
casing shoe. Following this activity, the 9 5/8 inch casing will be landed and
cemented. The well will then continue to drill an 8 1/2 inch hole to the Elang/
Plover Formation.

The prognosed depth of the Top Elang/Plover Formation at the Heron North
structure is 3900m. 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 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).





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