Investment Update

12 February 2010

AIM: XTR

                               XTRACT ENERGY PLC

                       Investment update - Extrem Energy

Xtract  Energy Plc ("Xtract" or "the Company") is pleased to announce thaton 11
February  2010 it entered  into a  further agreement  with its  Turkish partners
Merty  Energy ("Merty").  Under the terms  of the agreement, Xtract will acquire
from  Merty a further 16% of the issued capital of its Turkish associate company
Extrem  Energy A.S. ("Extrem"), taking Xtract's overall share of the business to
exactly 50%, with the other 50% held by Merty shareholders.

Consideration for the transfer is staged payments by Xtract of US$4.9 million to
Merty, which will apply US$0.9 million of the consideration to subscribe for 30
million  new ordinary shares in Xtract.  In addition, Xtract and Merty have each
agreed to contribute a further US$2.0 million to Extrem to fund the ongoing work
programme through to the drilling of an exploration well on the Siraseki licence
area  during the second quarter  of 2010.  Application will be  made for the new
Xtract  ordinary shares to be admitted to trading on AIM and this is expected to
become effective on 18 February 2010.

Further details about the proposed exploration well on the Siraseki licence area
will  be provided  shortly, along  with an  operational update on production and
drilling  activities  in  the  Sarikiz  field  and further information about the
strategy for the exploitation of other licences within the Extrem portfolio.

Commenting  on the transaction,Andy  Morrison, CEO of  Xtract said, "The notable
increase  of our shareholding in Extrem demonstrates the confidence of the Board
in the prospects for Extrem and for its significant licence portfolio in Turkey.
The  acquisition establishes joint control and represents another important step
in  the transformation of the company from a passive investor into one with more
active involvement with its underlying assets".

Xtract  holds its shares in Extrem through wholly owned subsidiary Xtract Energy
Spain SL.



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 50% 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.




[HUG#1383732]