Investment update

7 May 2009

AIM: XTR

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

          INVESTMENT UPDATE - MEO Australia Limited ("MEO")

Xtract refers to the following announcement released today in
Australia by MEO.

                       "ASX AND MEDIA RELEASE

  Major Project Facilitation (MPF) Status granted for Tassie Shoal
                              projects

MELBOURNE, AUSTRALIA (7th May, 2009) -- MEO Australia Limited (ASX:
MEO) advises that the Federal Government's decision to renew Major
Project Facilitation status for the Tassie Shoal Methanol Project and
the Timor Sea LNG Project will help in new plans to develop these
projects.

CEO and Managing Director of MEO Australia, Jürgen Hendrich, said the
decision by the Minister for Infrastructure, Transport, Regional
Development and Local government, the Hon Anthony Albanese, showed
confidence in MEO's plans to develop Tassie Shoal as a hub for the
commercialisation of surrounding gas fields.

"Our projects involve positioning pre-built production and storage
facilities on Tassie Shoal. The methanol plant and LNG storage tank
will be built on concrete gravity structures which will be towed to
the site and water ballasted to rest on the shoal while the small
footprint LNG plant will be pre-built on a self erecting platform."
said Jürgen.

"Tassie Shoal has many benefits for this type of development. It is
an area of shallow water in undisputed Australian waters about 275
kilometres north-west of Darwin and is surrounded by approximately 25
Tcf of undeveloped gas fields within a 150 km radius."

While much of this surrounding stranded gas is medium to high CO2 (10
- 25%), the methanol project will use a process which operates most
efficiently with a feed gas stream containing 25% CO2.

MEO's Tassie Shoal will have environmental benefits in that the
Methanol process will absorb CO2 which would normally be vented from
the LNG component of the project. In effect, it will act as a carbon
sink and therefore reduce its carbon footprint.

The CO2 is converted into methanol of which around 80% is used to
produce highly stable end use products such as adhesives, fabrics,
paints and silicones, effectively sequestering the CO2 into methanol
derivative products.

Several companies with undeveloped gas resources in the region would
be able to benefit from utilising MEO's Tassie Shoal project as a
development hub. It has the potential to provide an integrated
solution which not only avoids the billion dollar expense of a
pipeline to Darwin and the technological uncertainties of floating
LNG but also can also effectively deal with the CO2 in their gas.

While MEO propose that the LNG and Methanol production modules and
storage tanks will be manufactured in Asia and transported to Tassie
Shoal, many of the ancillary components could be manufactured in
Australia. MEO has estimated that the Australian content of the
projects' components could be as high as A$200 million.

The operation of the projects would be staffed from Darwin and each
would generate approximately 110 direct full time jobs. Darwin would
also act as the supply centre for the projects, with goods and
services being supplied to the projects by boat and helicopter.
Ancillary services associated with the projects would offer
considerable opportunities for the participation of local businesses
in Darwin. It is estimated that each project would generate up to 500
local jobs during the construction stage. The development of upstream
facilities would generate a similar number of jobs during the
construction.

"The Tassie Shoal projects have the potential to markedly increase
Australia's export income," said Jürgen Hendrich.

Hand-in-hand with MPF is Tassie Shoal's environmental credentials.
MEO has already secured the necessary environmental approvals to
install and operate two 1.75 Mtpa methanol plants and one 3.0 Mtpa
LNG plant at Tassie Shoal.

"As well as the potential to utilise gas from other companies, we are
progressing with plans to develop our own gas resources in the NT/P68
permit which is immediately adjacent to Tassie Shoal. Drilling the
Blackwood-1 and Heron-2 wells in this permit both led to gas
discoveries in 2008," said Jürgen Hendrich.

"MEO is currently in the process of farming out a portion of our
90-100% interest in NT/P68 to fund the drilling of additional wells
in the permit in 2010."

"All this points to an exciting future for the development of Tassie
Shoal."

Jürgen Hendrich
Managing Director & Chief Executive Officer
MEO Australia Limited"

A copy  of the  MEO announcement  referred to  above with  additional
information attached, is available  on the Australian Stock  Exchange
website: www.asx.com.au

Further information on MEO can be found at www.meoaustralia.com.au.

As an ASX quoted company, MEO 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

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  11.6% 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 in  26 offshore  blocks in  a 5,400  sq km  exploration  and
production licence close  to the prolific  Central Graben oil  field.
Technical analysis carried  out to date  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.

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 17.4% 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.