Investment update

2 March 2010

AIM: XTR

                               XTRACT ENERGY PLC

                        Drilling update - Extrem Energy

Further  to  the  announcement  made  on  12 February  2010, Xtract  Energy  Plc
("Xtract"  or "the  Company") is  pleased to  provide further  details about the
proposed  exploration well  to be  drilled by  its joint  venture company Extrem
Energy  AS ("Extrem") on the  Siraseki licence area in  Turkey, together with an
update  on  Extrem's  activities  in  the  Sarikiz  field, where a discovery has
already been made.

Well Programme - Menekselik-1 (Siraseki licence area)

The  results from seismic and GORE geochemical surveys over the Siraseki licence
(Extrem 100% interest) in the Adana basin were processed in 2009, giving rise to
a new prospect called Menekselik-1.

The  Adana basin is  located on the  eastern part of  the Mediterranean Sea, off
southern  Turkey. It covers an area of  more than 20,000km2, two thirds of which
lies  under the Mediterranean Sea.  It is surrounded by  the Taurus Mountains to
the  north, the Mut  Basin to the  west, and the  Misis Uplift to  the east. The
first  commercial  oil  discovery  was  made  by  Mobil in 1960 from the Miocene
carbonates  in the  Bulgurdag field  to the  northwest of  the basin. Since then
several  wells have been drilled in the area but no further commercial discovery
has  been made.  Menekselik-1 aims  to unlock  the undiscovered potential of the
basin.

Menekselik-1  is planned to target the Aslantis sandstones. The target structure
is a fault bounded anticline with an estimated (P50) area of 14 square km and an
expected  net productive pay thickness  of 30m. It is calculated  to be found in
the  depth range  between 1647-1703m. The  planned total  depth for  the well is
2010m.

On  reaching total depth, logging will be conducted in the 8 1/2'' hole section.
Depending  upon hydrocarbon  shows and  results of  the wire-line  log analysis,
cased-hole  testing may be carried out. If commercial quantities of hydrocarbons
are  interpreted to be present, 7" casing will  be run from the surface to below
the zones to be tested.

It  is  planned  to  use  Merty  Energy's  PM-3000  rig  for the work, in direct
continuation from operations on the Alasehir licence (see below). On this basis,
the  spud  date  is  likely  to  be  during  April 2010. Further updates will be
provided as appropriate.

Based  on  an  assumed  net  productive  pay  thickness  of 30m, Extrem Energy's
preliminary pre-drill P50 estimate of the recoverable hydrocarbons in place from
the  Menekselik-1 well is 3.8mbbl in an oil  case. For the Menekselik field as a
whole,  the equivalent estimates are 28.8mbbl in an oil case or 94 billion cubic
feet  in  a  gas  case.  Recovery  factors of 20% and 70% respectively have been
applied.

Drilling Update - Sarikiz-3

The  Sarikiz-3 well on the Alasehir licence area (Extrem 80%) was spudded on 10
January 2010. It is located approximately 525m away from previous discovery well
Sarikiz-2. The planned total depth of the well is 1950m.

Drilling  has  proceeded  more  slowly  than  expected.  Following completion of
open-hole  logs on  the shallow  section to  1308m on 22 February,  casings were
landed  and  cemented  into  position,  with  that  operation  completing on 28
February.  As at 2 March, drilling operations  had resumed, with a current depth
of  1432m. The targeted  Alasehir sandstones  are expected  to be encountered at
depths  between1570m and 1850m. Depending upon hydrocarbon shows and the results
of  wire line log analysis, 7 inch casing will  be run from the surface to below
the target zones and cased-hole production testing will be carried out.

Based on a 2 square km area and an assumed net productive pay thickness of 20m,
Extrem  Energy's preliminary  pre-drill P50  estimate of  the recoverable oil in
place  from the  Sarikiz-3 well  is 5.75mbbl, based  on an  assumed 20% recovery
factor. Further updates will be provided as appropriate.

Production Update - Sarikiz-2

As  advised  before,  production  from  Sarikiz-2 began on 13 January 2010, with
production  based on  natural flow  rates until  the installation of a down-hole
production  pump. The pump is  planned to be installed  by the Merty rig using a
work-over operation to be conducted after completion of the drilling and testing
operations at Sarikiz-3 (see above). Once the down-hole pump is installed, it is
expected that production from Sarikiz-2 will reach approximately 350 bbl/day, in
line with previous guidance.

An  update  on  timing  will  be  provided  once  it  is  clear how long current
operations at Sarikiz-3 will take.

Alasehir/Sarikiz Field Development

The  actual flow  rate achieved  during the  extended test  at Sarikiz-2 and the
drilling  results from Sarikiz-3  will do much  to confirm the  potential of the
Sarikiz oil field.

In  view  of  the  high  level  of  uncertainty  over the possible extent of the
oil-bearing  structures  in  the  wider  Alasehir  license  area and in order to
enhance  planning of further wells after Sarikiz-3, Extrem continues to evaluate
the  cost/benefit  of  undertaking  3-D seismic  over  the  license area. In the
meantime,  an in-fill programme of 2-D seismic  has been agreed, which will help
determine  a  location  for  follow-up  well  Sarikiz-4. It is possible that the
location of Sarikiz-4 will be at a more significant distance (a few km) from the
existing  wells  in  order  to  help  test  the potential of the wider area. The
two-step  seismic approach should help optimise  the selection of the geographic
area to be covered by the 3-D project.

The information above relating to resource estimates has been provided using the
SPE  standards and includes the following terms: "mbbl" (million barrels); "P50"
(mid-case 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.

Xtract holds 50% of the equity of Extrem through a wholly-owned subsidiary.


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.



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