Investment Update

22 March 2010
 
AIM: XTR
 
                               XTRACT ENERGY PLC
 
                        Drilling update - Extrem Energy
 
Further to its announcement dated 2 March 2010, Xtract Energy Plc ("Xtract" or
"the Company") is pleased to provide the following update on the drilling
operations of its Turkish business, Extrem Energy AS ("Extrem Energy") in the
Alasehir licence area.
 
Drilling Update - Sarikiz-3
 
The Sarikiz-3 exploration well reached a total depth of 2,027m on 16 March
2010. Wire-line logging was completed on 20 March and 7" casing was completed
and cemented today, in preparation for cased-hole production tests.
 
During drilling, oil shows were recorded in the mud-logs at a number of
sandstone intervals in the depth range 1,340-1,970m and preliminary analysis of
the wire-line logs provides further indications of hydrocarbons at several
levels. Well pressures and other indicators are comparable with those
experienced previously at Sarikiz-2. Further analysis of the logs and other data
is planned for today and tomorrow in order to prepare the work-plan for
cased-hole production tests.
 
In view of the encouraging results from Sarikiz-3, Extrem Energy has decided to
keep the drilling rig on station there for the production test. Although this
will slightly delay the installation of the down-hole pump at Sarikiz-2, it will
save the time and cost of additional rig mobilizations.
 
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 was 5.75mbbl, based on an assumed 20% recovery
factor. It is too early to make any updated projections.
 
Further updates will be provided as appropriate.
 
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 Energy through a wholly-owned
subsidiary.
 
Enquiries please contact:
 
Xtract Energy        Andy Morrison, CEO   +44 (0)20 3205 1148
 
Smith & Williamson   David Jones          +44 (0)20 7131 4000
  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
<http://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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