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  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#1396192]