Investment Update

22 September 2008
AIM: XTR

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

                 PROJECT UPDATE - MEO Australia Ltd

Xtract refers shareholders to  the following press release  announced
in Australia by MEO Australia Ltd ("MEO"). Xtract holds approximately
13.9% of the issued capital of MEO.

                       "ASX AND MEDIA RELEASE

         MEO Increases interest in WA-361-P & Zeus-1 to 35%

Key Points:
* Cue and Gascorp have each elected NOT to fund 5% of the Zeus-1 well
* Additional 10% intrest reverts to MEO, taking interst in WA-361-P
  to 35%

MELBOURNE, AUSTRALIA  (September 21,  2008) -  MEO Australia  Limited
(ASX: MEO) is pleased to advise that Cue and Gascorp have advised MEO
that they have elected  not to exercise  their respective options  to
each fund 5%  of the Zeus-1  well to retain  a 20% working  interest.
Under the terms of the farm-in agreement with MEO, this combined  10%
interest will now be transferred to MEO, together with the associated
10% funding obligation, increasing MEO's interest to 35%.


+-------------------------------------------------------------------+
| WA-361-P Participating Interests                                  |
| (Post Cue/Gascorp Election NOT to fund 5% of Zeus-1)              |
|-------------------------------------------------------------------|
| North West Shelf Exploration Pty Ltd    | 35% | Operator          |
|-----------------------------------------+-----+-------------------|
| Resource Development International Pty  | 35% | Farming in to MEO |
| Ltd                                     |     |                   |
|-----------------------------------------+-----+-------------------|
| Cue Exploration Pty Ltd                 | 15% | ASX: CUE          |
|-----------------------------------------+-----+-------------------|
| Gascorp Australia Pty Ltd               | 15% | Unlisted          |
|-------------------------------------------------------------------|
| *Wholly owned subsidiary of MEO Australia                         |
+-------------------------------------------------------------------+


The Zeus-1 well is  targeting a multi-Tcf gas  play in the  Carnarvon
Basin, off Australia's  North West Shelf.  MEO is paying  20% of  the
costs of Zeus-1 to a cap of  US$31.25m and retains a 35% interest  in
the well and WA-361-P. In the  event of a major discovery at  Zeus-1,
MEO sees  a  plethora  of  commercialisation  options  including  the
possible application  of Floating  LNG (FLNG)  technology. The  Songa
Venus semi-submersible rig is expected on location late October 2008.

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

Enquiries please contact:


Xtract Energy                Andy Morrison, CEO [phone]

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

Scott Harris                 Stephen Scott      [phone]
                             Ian Middleton


For further Information on Xtract please visit www.xtractenergy.co.uk

About Xtract Energy

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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