Investment Update

15 October 2008

AIM: XTR

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

                          Investment Update

Further to the announcement made on 2 October 2008, Xtract Energy Plc
("Xtract") provides the following update on the Sarakiz-2 well in
Turkey which is to be drilled on behalf of Extrem Energy A.S.
("Extrem Energy"). Extrem Energy is the new joint venture with Merty
Energy, Petroleum Exploration, Education and Services Inc. ("Merty").

As at 13 October 2008, mobilisation and rig-up was in progress and
the Turkish Authorities had confirmed their acceptance of fulfilment
of the drilling obligation required by that date. The expected spud
date has been deferred from 13 October until 27 October due to the
delay in the arrival of some imported well-head equipment and drill
bits. Shipment of these items from Houston, Texas was delayed by the
effects of Hurricane Ike.

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.

Xtract currently holds a 20% interest in Extrem Energy and has the
option of increasing its shareholding to 34% by contributing a
further investment of US$3.5m before June 2009.

Further progress updates will be provided as appropriate.


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


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 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.

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. 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.

---END OF MESSAGE---




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