Investment update

27 August 2009

AIM: XTR

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

                  Investment update - Extrem Energy

Xtract Energy Plc ("Xtract") is pleased to provide the following
update on operations and development plans at its Turkish joint
venture Extrem Energy A.S. ("Extrem Energy").

Alasehir/Sarikiz Licence (Extrem Energy 80%)

As previously announced, the Sarikiz-2 well has been shut in as a
future production well, with commercial production expected to
commence in October, once the construction of the necessary surface
facilities has been completed.

Following the successful production test, the new well data has been
analysed together with seismic data, logs from the former East
Sarikiz-1 well and GORE geochemical analysis over the licence area.
On the basis of this analysis, the estimated (P50) total oil in place
within the greater Sarikiz structures has been revised upwards to 371
mbbl ("Development pending - Contingent resources" according to SPE
classification). Using a 20% recovery factor (the more conservative
end of the previously announced range), the total recoverable oil in
the Sarikiz field is now estimated (P50) to be 74 mbbl.

In addition to the re-entry of East Sarikiz-1 which was already
announced, analysis of seismic and well logs at the former Alasehir-1
well in the same licence area have also indicated the presence of
commercial oil. It has therefore been decided to re-enter this well
in order to establish production from the Alasehir field. The forward
production drilling programme is now expected to be as follows:

1)      Alasehir-1 (re-entry)
2)      East Sarikiz-1 (re-entry)
3)      Sarikiz-3 (new well)

Upon mobilization of the required drilling equipment the above
programme is expected to commence in early September and continue
through to the end of December 2009.

An estimate of the total oil in place on the Alasehir field will be
made following the production test. Figures for Alasehir will be in
addition to the above estimates.

Formal field development plans and reserve categorisation will be
finalized once commercial production has been established. Production
performance from the initial wells will be analysed to determine the
optimal well configuration to drain the structures over a reasonable
field life of 20-25 years.

Siraseki Licence (Extrem Energy 100%)

The results from seismic and GORE geochemical surveys over the
Siraseki licence area near the Syrian border have now been processed
and have given rise to a new prospect called Menekselik. The
sandstone structure is a fault bounded anticline with an estimated
area of 11.2 square km and an expected pay thickness of 30m. If the
structure contains natural gas, the recoverable gas in place is
estimated to be 94 bcf using a 70% recovery factor. Extrem Energy
intends to drill the prospect in early 2010 following completion of
Sarikiz-3.

Edirne Licence (Extrem Energy 100%)

The additional seismic programme mentioned in the announcement of 3
August was completed on 9 August. The acquisition of GORE geochemical
data commenced on 19 August and is ongoing. The seismic and
geochemical data will be analysed together to identify drilling
targets in this gas-bearing zone. If successful, these targets will
be drill-ready by early 2010. The area is close to existing
downstream  infrastructure, so production can be established quickly
in the event of success.

Extrem Energy is also working on plans to appraise and exploit its
off-shore licences in Candarli Bay and the Sea of Marmara.

All operations are controlled and operated by Merty Energy, Xtract's
joint venture partner in Extrem Energy. Xtract holds 34% of Extrem
Energy.

The information above relating to resource estimates has been
provided using the SPE standards and includes the following terms:
"mbbl" (million barrels); "bcf" (billion cubic feet); "P50" (midcase
scenario in relation to reserve expectations)

The above information has been reviewed and approved by Ongun
Yoldemir, Managing Director of Extrem Energy, who has a masters
degree in geological engineering and worked as an explorationist in
the oil and gas sector in the Middle East, Kazakhstan, Azerbaijan,
and North Sea, has over 28 years' experience in the resource and
energy sector and is a member of the American Association of
Petroleum Geologists, European Association of Geologists and
Engineers, the Society of Exploration Geophysicists and several
related Turkish institutions.

Enquiries please contact:


Xtract Energy      Andy Morrison, CEO [phone]

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


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.

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
34% of the issued share capital of Extrem Energy.

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 60% operating interest in gas-bearing license blocks  P1
and P2 in  the Dutch North  Sea. Xtract owns  approximately 35.0%  of
Elko's issued share capital.

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.

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 12.6% of the issued share capital of Wasabi.

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