Investment Update

Xtract Energy plc
28 December 2007


27 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') today.

Xtract currently holds approximately 15.7% of the issued capital of MEO.


                              HERON-2 WELL UPDATE

           DECISION TO PRODUCTION TEST HERON NORTH PLOVER RESERVOIR

MELBOURNE, AUSTRALIA (December 28, 2007) -- MEO Australia Limited (ASX: MEO)
advises the market that the Company has today approved production testing of the
gas charged zones of the Heron North Elang/Plover formation reservoir in the
Heron-2 well.

The participants in the Heron-2 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%


Higher bottom hole temperatures did not allow logging while drilling through the
Elang/Plover formation. At a drilled depther of 4182m, the drill string was
pulled from the borehole and a separate high temperature logging suite was
acquired through the Elang/Plover formation. Preliminary petrophysical analysis
has confirmed that 202m of Plover formation gross section has been drilled to
date with approximately 164m of gross sandstone.

Initial results of the drilling and logging in the Plover formation indicate:

- Upper Plover formation sandstone unit observed from 3980m to 4081m;

- Middle Plover formation appearing to be a siltstone unit: 4081m - 4119m;

- Lower Plover formation sandstone unit observed from 4119m to 4182m (current TD
  of well);

- Gross Plover formation sandstone interval of 164m;

- Based on preliminary log interpretation, these sandstones appear to be gas 
  charged;

- Initial mud log indications while drilling suggest wet gas;

- No carbon dioxide was recorded by mud gas detection systems while drilling;

- Primary porosity generally ranging between 5% and 10%;

- A number of prominent fracture systems appear to be present in the
  sandstone units (corresponding to lost circulation zones), which would be
  expected to enhance permeability and produce-ability of any gas.

While the prognosed gas-water-contact (GWC) and mapped structural spill point
(4260m) has not yet been reached in Heron-2, the Company is conducting a
barefoot production test of the Plover formation to determine indicative gas
quality and reservoir productivity, thereby confirming that a recoverable
resource is present. Testing of this zone is expected to be undertaken in the
week commencing December 31, 2007.


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
Finance Limited                David Jones             [phone]
                               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 50.3% 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