Investment Update

23 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

   Secures 12 month extension to farm-in to WA-359-P and WA-360-P

Key Points:

*          Secures 12 month extension to drill/drop options on
  WA-359-P and WA-360-P originally due to expire 1 January 2009.

*          TC Billy delays handover of Songa Venus drilling rig until
  approximately 5th January 2009.

MELBOURNE, AUSTRALIA (December 23, 2008) - MEO Australia Limited
(ASX: MEO) is pleased to advise that the participants in WA-359-P and
WA-360-P have agreed to a 12 month extension to the farm-in terms for
these permits.

MEO has an option that is due to expire on 1st January 2009, whereby
MEO must commit to funding a well in each of the permits to retain
its current 60% interest beyond this date. In consideration of
extending this option by 12 months and thereby deferring the drilling
commitment, MEO plans to acquire at least 175 km2 of additional 3D
seismic to further delineate the Artemis prospect in WA-360-P and to
reprocess sufficient existing 3D seismic to firm up the Hephaestus
lead in WA359-P into a drillable prospect. The latter is contingent
upon a successful outcome at Zeus-1.

MEO is currently seeking farm-in partners with the intention of
drilling at least one well in each of these permits in 2010.

The original farmin arrangements for WA-359-P, WA-360-P and WA-361-P
were agreed in October 2007. Since this time MEO has acquired 2D and
3D seismic, re-processed 3D seismic, confirmed the Zeus prospect in
WA-361-P and developed an inventory of prospects and leads in the
three permits (refer attachment 1). In July this year, MEO committed
to drilling the Zeus-1 well in WA-361-P and secured Resource
Development International Limited (RDI) as a farm-in partner, thereby
cementing its interest in that permit.

MEO has been advised that Tropical Cyclone Billy has delayed the
release of the Songa Venus drilling rig from its current well until
at least 5th January 2009. Once the rig is released to MEO, it will
undergo a 6-7 day tow to the Zeus-1 location.

Jürgen Hendrich
Managing Director & Chief Executive Officer"

A copy of the attachment referred to in the text above can be found
in the announcement published by MEO, which is available on the
Australian Stock Exchange website: 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. In addition to evaluating third party technologies, XOL
has been developing proprietary technology for the commercial
extraction of liquid hydrocarbon products from oil shale.

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.