Investment Update

2 December 2008
AIM: XTR

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

                 PROJECT UPDATE - MEO Australia Ltd

Xtract refers  shareholders to  the following  announcement  released
today in Australia by MEO Australia Ltd ("MEO").

"ASX AND MEDIA RELEASE

RDI farm-in options over two North West Shelf Permits lapse

Key Points:

* Global financial market downturn has caused a deferral of the
  planned IPO of Resource Development International (RDI) into 2009.
  As a result, RDI was unable to exercise its options to farm-in to
  WA-359-P and WA-360-P by December 1 and they have lapsed.

* RDI continues to fund 80% of the Zeus-1 well in WA-361-P, due to
  spud in December.

* MEO technical work continues to enhance the prospectivity of all
  three WA permits.

MELBOURNE, AUSTRALIA  (December 2nd,  2008) -  MEO Australia  Limited
(ASX: MEO)  has been  advised by  Resource Development  International
(RDI) that in  view of the  delay to its  IPO it has  elected not  to
exercise its options  to farm-in  for 35% interests  in WA-359-P  and
WA-360-P. Given the depth and breadth of the global financial crisis,
this outcome, while disappointing was not unexpected.

RDI remains a valued co-venturer in relation to WA-361-P where it  is
funding 80% of the forthcoming Zeus-1 well to a cap of US$31.25m. MEO
is funding the balance of the well costs. In the event of a discovery
being declared at Zeus, RDI will  pay MEO's shares of two  additional
wells in the  permit, the timing  of which will  be subject to  Joint
Venture approval.

Participants in Zeus-1 and WA-361-P:


North West Shelf Exploration Pty Ltd*                    35% Operator
Resource    Development    International                 35%
Limited
Cue Exploration Pty Ltd (ASX: CUE)                       15%
Gascorp Australia Limited (Unlisted)                     15%

* Wholly owned subsidiary of MEO Australia Limited

The MEO technical team continues to advance the prospectivity of  all
three permits and has identified several strong leads (refer attached
map) which the Company is confident of maturing to drillable prospect
status.

MEO expects to secure replacement  farm-in partners for WA-359-P  and
WA-360-P in the near future.

Jurgen Hendrich
Managing Director & CEO
MEO Australia Limited"

A copy of the map referred to in  the text above can be found in  the
announcement published by MEO, which  is available on the  Australian
Stock Exchange website:


http://www.asx.com.au

Enquiries please contact:


Xtract Energy      Andy Morrison, CEO  [phone]

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

Scott Harris       Ian Middleton       [phone]
                   James O'Shaughnessy


About Xtract Energy

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.

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

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 Ltd ("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  13.9% of MEO's issued  share
capital.

Elko Energy Inc. ("Elko")

Elko is a Canadian registered oil & gas exploration company which has
interests in exploration  and production licences  in the Danish  and
Dutch North Sea. Its major 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.

Extrem Energy AS ("Extrem Energy")

Extrem Energy is  an exploration  and production  joint venture  with
Merty Energy of Turkey. The JV's aim is to create a new  medium-sized
oil and gas exploration and production business, initially focused on
Turkey where Merty  Energy has particular  experience and  expertise.
Extrem Energy has a portfolio of licence interests including the high
potential prospect at Candarli Bay in south-west Turkey. Xtract  owns
20% of the issued share capital  of Extrem Energy and has the  option
of increasing its shareholding to 34% before 30 June 2009.

Xtract Oil Ltd ("XOL")

Xtract's wholly owned subsidiary, XOL, 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. XOL  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.

Xtract Energy (Oil Shale) Morocco SA ("XOSM")

XOSM is  a  joint  venture with  Alraed  Limited  Investment  Holding
Company WLL, a company controlled by His Highness, Prince Bandar  Bin
Mohd. Bin  Abdulrahman Al-Saud  of Saudi  Arabia. XOSM  has signed  a
Memorandum  of   Understanding   with   the   Office   National   des
Hydrocarbures et  des  Mines  for  the  purposes  of  evaluation  and
possible development of  an oil  shale deposit near  Tarfaya, in  the
south west part of Morocco. Xtract  currently holds 70% of the  joint
venture.

Wasabi Energy Ltd ("Wasabi")

Wasabi (ASX:  WAS)  is  a diversified  investor  in  traditional  and
renewable energy  technologies. Amongst  its listed  assets it  holds
approximately 38%  of Rum  Jungle Uranium  Ltd (ASX:  RUM) which  has
interests in uranium exploration licenses  covering some 4,150 sq  km
of  Australia's  Northern  Territory   and  approximately  12.5%   of
Greenearth Energy Ltd  (ASX:GER) which  aims to  explore and  develop
geothermal resources in Australia and  the wider Pacific Rim.  Xtract
owns approximately 19.4% of the issued share capital of Wasabi.

Zhibek Resources Ltd ("Zhibek Resources")

Zhibek Resources is an oil and gas exploration and production company
which has a 72% interest in the Tash Kumyr and Pishkoran  exploration
licences in  the  Kyrgyz Republic.   Xtract  has entered  a  farm-out
agreement to  fund  a seismic  and  drilling programme  for  2008-09.
Xtract owns 25.0% of the issued share capital of Zhibek Resources.

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This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.