Investment Update

20 January 2010

AIM: XTR

                               XTRACT ENERGY PLC

                       Investment update - Extrem Energy

Further  to its announcement dated  11 January 2010, Xtract Energy Plc ("Xtract"
or  "the  Company")  is  pleased  to  provide the following update on production
operations at its Turkish associate company Extrem Energy AS ("Extrem").

Sarikiz-2 Production

Production  began on Wednesday  13 January 2010. The average  daily natural flow
rate  has  been  approximately  60 barrels  ("bbl")  per  day  net  oil. This is
consistent  with  management  expectations  and  consistent  with the previously
projected  pumped flow-rate  of 350 bbl/day,  once the  down-hole pump  has been
installed. Full pumped volumes from Sarikiz-2 are expected to be achieved by the
end  of Q1 2010. Until then, production is expected to be based on natural flow.
The  first truck delivery of  the crude oil to  the Aliaga refinery is scheduled
for  the last week of January 2010 or first days of February 2010; a ceremony to
be attended by the Turkish minister for natural resources is planned to mark the
commencement of production at Sarikiz-2.

The expected sales price of the crude is the spot price of Arab Medium crude oil
less  an API Gravity adjustment of approximately  US$1 per bbl. There is a state
royalty  payable of 12.5%. Transportation costs are  expected to be US$5 per bbl
with other variable operating costs estimated at a similar figure. Corporate tax
at  20% will  be  applied  once  the  company  is profitable. Withholding tax on
dividends payable by Extrem to Xtract is expected to be 5% (see below).

Extrem holds 80% of the relevant license. Xtract holds 34% of Extrem.

Xtract Energy Spain SL

Xtract  has recently incorporated a wholly owned Spanish holding company, Xtract
Energy  Spain SL, and  is in the  process of transferring  its entire holding in
Extrem to the new company. The insertion of an intermediary company provides the
group with greater financial flexibility. Spain was selected as the host country
due to its favorable tax treaty with Turkey.

Commenting  on  the  developments,  Andy  Morrison,  CEO of Xtract said, "We are
delighted to note the new milestone reached by Extrem on its journey to become a
medium-sized  oil and gas exploration and production company. We look forward to
building on the important achievement represented by the start of production."


The production  information  above  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 50.0% 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 exploration  licence in the Kyrgyz Republic.
Xtract has entered a farm-out agreement to fund a seismic and drilling programme
for 2008-10. 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.




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