Investment Update

Xtract Energy plc
01 February 2008

1 February 2008                                                     AIM: XTR

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

                       PROJECT UPDATE - MEO Australia Ltd

Xtract refers shareholders to the following press release announced today in
Australia by MEO Australia Ltd ('MEO').

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


                             'ASX AND MEDIA RELEASE

                 BLACKWOOD-1 WELL WEEKLY DRILLING REPORT - No 1

Key Points:

• Blackwood-1 spud date February 1, 2008

MELBOURNE, AUSTRALIA (February 1, 2008) -- MEO Australia Limited (ASX: MEO)
submits this drilling report for the period ending 1000 hours, February 1, 2008.
Blackwood-1 is scheduled to be spudded later today, Friday, February 1, 2008 in
Exploration Permit NT/P68.

The rig was pinned over the Blackwood-1 location at 9 am, January 30, 2008,
pre-load and skidding of the cantilever into drilling position has been
completed. The rig is currently picking up and racking drill pipe into the
derrick, making up the bottom hole assembly and preparing to commence drilling
the 26 inch hole to 465m.

Blackwood-1 is being drilled by Seadrill's West Atlas jack-up rig contracted to
MEO for two firm wells. The Blackwood-1 wildcat well is being 100% funded as a
sole risk operation by MEO. The well is designed as a vertical well to
penetrate, log and recover gas samples in the Plover Formation of the Blackwood
structure.

The participants in the Blackwood-1well are:

TSP Arafura Petroleum Pty Ltd (MEO subsidiary)                        50%
Oz-Exoil Pty Ltd (MEO subsidiary)                                     50%

C.R. Hart, Managing Director
MEO Australia Limited
NT/P68 Operator'


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                 David Jones              [phone]
Corporate 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.

Xtract is supported by its cornerstone investor, Cambrian Mining Plc (AIM:CBM) a
diversified resource investment house which together with its wholly owned
subsidiary Cambrian Investments Holdings Limited holds approximately 50.12% of
the issued share capital of the Company.

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