Investment update

1 September 2009

AIM: XTR

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

                   Investment update - Elko Energy

Xtract Energy Plc ("Xtract") notes below the Shareholder Update which
was issued by Elko Energy Inc ("Elko Energy") to its shareholders on
Friday 28 August. Xtract currently owns approximately 35.0% of the
issued capital of Elko Energy.

Xtract takes this opportunity to update investors on the progress of
the conditional agreement with Lysander Minerals Corporation
("Lysander") which was announced to the market on 28 April 2009. The
conditional agreement involves the possible injection of Xtract's
holding in Elko Energy into Lysander in exchange for new Lysander
shares. At the present time, discussions with Lysander are paused
while Lysander works on its other planned investments. Negotiations
on the conditional agreement may or may not resume at a later date.
Further updates will be provided as appropriate.

"Elko Energy Inc. ('Elko') is pleased to provide this further update
on the ongoing development of the Elko business.

Disposal of Shares in Dragon Energy Inc. ("Dragon")

The respective boards of Elko and Dragon have been in negotiation for
some time in relation to Elko exiting its equity position in Dragon
so that it can dedicate its management efforts and financial
resources to its Dutch and Danish North Sea assets. On August 26,
2009, Elko and Dragon signed an overriding royalty agreement whereby
Elko will benefit from a 2.5% overriding royalty from future revenues
from the Kotaneelee field *, over a maximum term of five years, such
five year period commencing August 26, 2009, capped at an aggregate
value of CDN$750,000. In exchange Elko has returned to Dragon
15,600,000 common shares representing its 51%  ownership. Jack Bray,
Peter Moir and Andy Morrison have resigned from the board of Dragon.

* Dragon holds a 30.667% working interest in the Kotaneelee field in
the Yukon territory Canada operated by Devon. Gas production at
Kotaneelee is in decline and gas prices in North America are
currently depressed resulting in a significantly weakened revenue
stream from current production levels.

Business Update

1) Netherlands

The geology, geophysical and reservoir engineering definitions of the
P1-FA field have been further developed to create an outline field
development plan. An appraisal well location has been identified and
this will be discussed with our Dutch state partner EBN in the near
future.

Discussions with offshore facilities and pipeline infrastructure
owners have identified a number of options for the offshore removal
and storage of CO2 and the onward transportation of sales gas to
European markets. Discussions continue with selected infrastructure
owners to identify the best economic route to commercialize the P1/P2
assets.

Elko has had discussions with a number of potential new financing
partners to replace Oyster via a promoted farm out of a percentage of
Elko's working interest in Blocks P1 and P2. These partnering
discussions continue in parallel with our discussion with
infrastructure owners.

2) Denmark

Reprocessing of approximately 3,000 km of seismic data is now
complete on our 02/05 Danish licence and work has commenced in
evaluating the potential of the Chalk interval and to reevaluate the
Rotliegendes sandstone horizon. The results will be part of a planned
marketing initiative aimed at securing an additional financing
partner or partners.

Peter Moir
President
August 28, 2009"

Further information on Elko can be found at www.elkoenergy.com. As an
unquoted company,  Elko is  not  subject to  the  AIM Rules  and  the
information contained in this announcement 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      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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