Investment Update

2 October 2008
AIM: XTR
                          XTRACT ENERGY PLC
                     ("Xtract" or the "Company")

                   MERTY ENERGY INVESTMENT UPDATE

Further to the announcement made on 16 September 2008, Xtract Energy
Plc ("Xtract") is pleased to provide a further update on developments
in Turkey with its new joint venture partner, Merty Energy, Petroleum
Exploration, Education and Services Inc. ("Merty").

Xtract has today paid the final installment of US$1.5m in respect of
the agreed initial work programme and has therefore completed the
agreement that gives it a 20% interest in the joint venture company.
 Xtract has the option of increasing its shareholding in the joint
venture to 34% by contributing a further investment of US$3.5m before
June 2009.

Formally registered as Extrem Energy Petroleum Exploration,
Production, Education and Services A.S., the company will be known in
English as Extrem Energy A.S. ("Extrem Energy"), which will be the
name used in future announcements.

Now that Extrem Energy has been registered, focus will turn to the
process of formally transferring the agreed portfolio of licence
interests to the company.

The drilling plans for the first joint venture well SARAKIZ-2 remain
as previously announced. The well is expected to spud on or before 13
October 2008.  The rig is operated by Gney Yildizi of Turkey. The
target is in the interval of 1500-1700m in depth, which is expected
to be reached within 25-30 days. Depending on the drilling results,
first production could be expected in the first half of 2009.

Further progress updates will be provided as appropriate.

Enquiries please contact:


Xtract Energy plc                 Andy Morrison, CEO  [phone]
                                                                 1798

Smith & Williamson Corporate      David Jones         [phone]
Finance Limited                   Azhic Basirov                  4000

Scott Harris                      Ian Middleton       [phone]
                                  James O'Shaughnessy            0030


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

About Merty Energy

Merty is an oil and gas company that owns 18 exploration licences  in
several basins  of Turkey.  It has  successfully discovered  new  gas
fields in  a licence  where  it is  the  operator. It  also  provides
consulting, support and operations  services to parties operating  in
the hydrocarbon, geothermal, coal and ore exploration, production and
asset development  sector in  Turkey,  the Middle  East and  the  CIS
countries.  It has local and international technical expertise in all
aspects of hydrocarbon exploration.

Merty's services include:
* Geological,  Geophysical,  Geochemical  and  Petroleum  Engineering
Services
* Acquiring Oil and Gas Exploration and Production Licences, Oil  and
Gas Production Fields
* Assisting Oil and Gas Companies in Exploration and Production
* Assisting Mining Companies in Exploration and Production
* Data Acquisition and Interpretation for Exploration and Production
* Environmentally Friendly and Efficient Energy Solutions
*   Oilfield   and   Office   Logistics,   including   Shipping   and
Transportation
* Strategy Planning
* Geotechnical Services
* Environmental Studies
* Coal Bed Methane Feasibility Studies

About Xtract

Xtract identifies and  invests in  a diversified  portfolio of  early
stage energy  sector  technologies and  businesses  with  significant
growth  potential.  The  Company  aims  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")

MEO (ASX: MEO) aims to become an integrated Australian Gas-to-Liquids
("GTL") company.  In  2008, MEO made  significant gas discoveries  in
the Australian Timor Sea, in an area of shallow water known as Tassie
Shoal.  Early  commercialisation  of  these  discoveries  is  planned
through construction of  Liquified Natural Gas  ("LNG") and  Methanol
plants and export terminals on  the off-shore Tassie Shoal.  MEO  has
already secured Australian Government environmental approvals for two
large scale (1.8  Mtpa) methanol  plants and a  3 Mtpa  LNG plant  on
Tassie Shoal.  Xtract owns approximately 14.2% of MEO's issued  share
capital.

Elko Energy ("Elko")

Elko is a Canadian registered oil & gas exploration company which has
an interest in exploration and production licences in the Danish  and
Dutch North Sea. Its largest asset is in the Danish North Sea; an 80%
interest on  26 offshore  blocks in  a 5,400  sq km  exploration  and
production licence close  to the prolific  Central Graben oil  field.
Technical work indicates the potential for significant reserves. Elko
also holds a 33% operating interest in gas-bearing license blocks  P1
and P2 in the  Dutch North Sea.  Xtract  owns approximately 35.4%  of
Elko's issued share capital.

Oil Shale

Xtract's wholly owned subsidiary, Xtract Oil Ltd, is focused on the
development of the Company's oil shale resources in Australia and the
technology for oil extraction from oil shale resources. Xtract has
oil shale exploration rights over mining tenements in the Julia Creek
area of Queensland with total indicated and inferred resources in
place of 2.12 billion bbls. Xtract is also developing proprietary
technology for the commercial extraction of liquid hydrocarbon
products from oil shale which could partially address the global
decline of conventional oil reserves with significant environmental
benefits and higher yields over previously employed extraction
methods.

Wasabi Energy

Wasabi Energy is a diversified investor in traditional and  renewable
energy technologies.   It  holds  approximately  38%  of  Rum  Jungle
Uranium Ltd (ASX:  RUM) which has  interests in exploration  licenses
covering some 4,150 sq km  of Australia's Northern Territory and  has
entered into  agreements which  will give  it rights  to explore  for
uranium over a further 3,330 sq km.  Xtract owns approximately  19.4%
of the issued share capital of Wasabi Energy.

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.

---END OF MESSAGE---