MEO Update

Xtract Energy plc
04 June 2007


Xtract Energy plc

MEO announcement

4 June 2007

Set out below is the text of an announcement released today by MEO Australia
Limited, which is quoted on ASX. Xtract Energy plc owns approximately 28 per
cent of MEO Australia's issued share capital (before the share placement
referred to in the announcement).

'FARMIN BY PETROFAC RESOURCES AND PLACEMENT

Key points

   •Petrofac Resources farms into NT/P68 for a 10% interest by funding 25% of
    well costs

   •Placement to institutional investors completed raising A$41.25 million

   •Share Purchase Plan for shareholders as at Record Date June 13, 2007

MELBOURNE, AUSTRALIA (June 4, 2007) - MEO Australia Limited (ASX: MEO) is
pleased to announce that Petrofac Resources Limited has farmed into the
Company's Exploration Permit, NT/P68. Petrofac will meet 25% of the well costs
associated with the 2007 appraisal drilling program to earn a 10% interest and
has an option to increase this farm-in interest to 15% by funding 37.5% of the
well costs.

MEO decided late in 2006 to offer up to 30% of NT/P68 for farm-in by strategic
partners that offered strong operational and relevant technical expertise.
Additionally the farminee would need to demonstrate alignment to MEO's
objectives to ensure the rapid commercialization of hydrocarbons confirmed by
the 2007 drilling program and the approved gas-to-liquid (GTL) projects.

Petrofac has also been granted an option to participate in the proposed Tassi
Shoal LNG and methanol projects at the same equity participation level as the
farm-in. Petrofac's participating interest in the methanol project would reduce
Air Product's 50% interest (MEO will retain its current 50% interest).
Petrofac's participating interest in the LNG project would reduce MEO's current
100% interest. Petrofac would earn its interests in the GTL projects by
contributing to the initial front end engineering and design (FEED) costs and
paying a NPI royalty to MEO from the Petrofac share of the project's eventual
operating profits.

Petrofac brings strong engineering, procurement, construction and operational
expertise to the NT/P68 joint venture through their EPC and facility management
divisions. Petrofac also provides an experienced sub-surface team with specific
skills in hydrocarbon production from fractured carbonates similar to the
Epenarra reservoir, and will second key personnel into the MEO team to help
manage the 2007 drilling program. Following the completion of the 2007 drilling
campaign, Petrofac will assume the role of permit operator to manage the
subsequent full appraisal of any resources confirmed in the permit and would
operate the eventual upstream hydrocarbon production facilities.

MEO continues to field strong interest from highly credentialed industry players
eager to join Petrofac and participate in MEO's projects. MEO expects to resolve
the farm-out for the balance of the 30% interest over the coming weeks. However,
MEO believed it prudent to raise sufficient funds ahead of finalising other
farm-in arrangements to ensure that it can meet its financial obligations for
the 2007 drilling program on a dry-hole cost basis.

The Company is pleased to advise that during the trading halt, a placement of
41.25 million shares at A$1.00 per share was made to Australian and European
professional and sophisticated investors. The placement was jointly managed by
the Company's Australian broker, Tolhurst Limited, and London broker, WH
Ireland. The offer was heavily over-subscribed.

The Company has also decided to initiate a Share Purchase Plan (SPP). Australian
and New Zealand Shareholders on MEO's register at the Record date of June 13,
2007 can apply for up to 5000 shares at A$1.00 per share; the same terms as the
placement just completed. No brokerage fees will apply to the SPP shares. Each
shareholder will shortly be sent an application form and a copy of the Company's
Half Year Report. The offer will open on June 15, 2007 and applications and
payment must be received by 5pm (EST) on July 6, 2007.

The Company is now in a strong financial position and looks forward to working
with Petrofac to achieve a successful outcome in the drilling campaign later in
the year.

CR Hart
Managing Director
June 4, 2007

For further information contact Chris Hart: [phone] or [phone]
or [e-mail]

Pretrofac background:

Petrofac is a leading international provider of facilities solutions to the oil
& gas production and processing industry, with a diverse customer portfolio
including many of the world's leading integrated, independent and national oil &
gas companies. Petrofac is quoted on the London Stock Exchange (symbol: PFC) and
is a constituent of the FTSE 250 Index.

Through its three divisions, Engineering & Construction, Operations Services and
Resources, Petrofac designs and builds oil & gas facilities; operates, maintains
or manages facilities and trains personnel; and, where return criteria are met
and service revenue synergies identified, co-invests with clients and partners.
Petrofac's range of services allows it to help meet its customers' needs across
the life cycle of oil & gas assets.

With over 9,000 employees, Petrofac operates out of four strategically located
international centres, in Aberdeen, Sharjah, Woking and Mumbai and a further 16
offices worldwide. The predominate focus of Petrofac's business is on the UK
Continental Shelf (UKCS), Africa, the Middle East, the Commonwealth of
Independent States (CIS) and the Asia Pacific region. For additional
information, please refer to the Petrofac website at www.petrofac.com'

Enquiries in relation to Xtract please contact:

Xtract Energy plc       John Newton, CEO                [phone]

Smith & Williamson
Corporate Finance Ltd   David Jones/ Azhic Basirov      [phone]


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