Project Update

11 December 2008

AIM: XTR

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

                     PROJECT UPDATE - OIL SHALE

Further to  the  commentary provided  in  its recent  annual  report,
Xtract gives the following update on the development of its oil shale
projects.

Queensland, Australia

In August 2008, the Queensland Premier announced a 20-year moratorium
on a proposed oil shale development in the Whitsunday coastal region,
and a 2-year review period for oil shale developments throughout  the
state during  which  no  new  mining  activity  would  be  permitted.
Although the mineral  rights of Xtract's  100% subsidiary Xtract  Oil
Ltd ("XOL") in Queensland were  not affected, the review has  created
uncertainty over the extraction of the underlying oil shale.

XOL recently held  a meeting with  representatives of the  Queensland
government to  present  the  progress  of  XOL's  technology  and  to
understand the  proposed  review  process.  Whilst  response  to  the
technical progress  was encouraging,  the government  representatives
were not  able to  give  much further  information about  the  review
process or its likely impact.

Under these circumstances,  Xtract has  taken the  decision to  scale
back significantly its projected investment in the development of oil
shale technology. The net investment by XOL in the current  financial
year is now estimated to be A$0.9m, the majority of which has already
been committed.

As a  result of  this decision,  the project  enters a  'hibernation'
phase  until  conditions  improve  sufficiently  to  attract  further
investment. XOL intends to maintain its mineral rights over its  2.12
billion barrels of indicated and inferred resources.

Morocco, New Zealand and Egypt

On 19 September,  Xtract announced  the creation of  a joint  venture
company in Morocco, Xtract Energy (Oil Shale) Morocco S.A.  ("XOSM"),
for the evaluation and possible  development of an oil shale  deposit
near Tarfaya, in  the south  west of the  country. A  decision as  to
whether to conduct  an initial pre-feasibility  study is pending.  An
early stage project in the Nevis Valley in New Zealand is on hold and
discussions about participation in Egypt have been discontinued.

Commenting on the  developments, Andy Morrison,  CEO of Xtract  said,
"The world has continued to change since we issued our annual report,
and we believe that there are now better prospects for the Company in
the coming months than  those offered by the  oil shale business.  By
maintaining the  mineral  rights  at  limited  cash  expense,  Xtract
retains the option to exploit the resource when investment conditions
are more supportive".

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 (other than XOL
and XOSM which are  described above) 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  13.9% 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 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 33% operating interest in gas-bearing license blocks  P1
and P2 in  the Dutch North  Sea. Xtract owns  approximately 35.4%  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.

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 19.4% 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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