Investment Update

22 August 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

     Sea floor geographical survey for Zeus-1 location completed

Key points:
* Geographic survey of Zeus-1 location sea floor survey completed
* Well planning and regulatory approvals proceeding to plan
* Songa Venus drilling rig scheduled to arrive on location 31st
  October

MELBOURNE, AUSTRALIA (August 22, 2008) - MEO Australia Limited  (ASX:
MEO) is pleased  to advise  that Fugro's survey  vessel the  Southern
Supporter has returned to port having completed the geographic survey
of the Zeus-1  well site  in permit  WA-361-P in  the offshore  north
Carnarvon Basin, Western Australia.

The recently completed  survey by  Fugro is designed  to confirm  the
absence of anomalous features on  the sea floor, identify the  seabed
terrain and provide sufficient shallow geological data to enable  the
safe and  efficient anchorage  of  the Songa  Venus  semi-submersible
drilling vessel.

The Department of the Environment, Water, Heritage and the Arts  have
advised this  week  that  in  accordance  with  MEO's  EPBC  Referral
(2008/4351)  together  with  some  acceptable  prescribed  procedural
aspects, the drilling of Zeus-1 is not considered a controlled action
under the EPBC Act.

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 commence set-up and drilling of the
Zeus-1 well targeting the multi-Tcf Zeus play around 31 October 2008.

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

Further information on MEO can be found at www.meoaustralia.com.au.

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.

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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