Investment Update

1st February 2011

AIM: XTR

XTRACT ENERGY PLC

("Xtract" or the "Company")

Investment Update

Xtract Energy Plc ("Xtract") notes below the Shareholder Update which was issued by Elko Energy Inc. ("Elko Energy") to its shareholders on Tuesday 1st February 2011.

"Elko Energy Inc. ('Elko') is pleased to provide this further business development update.

Business Update

Denmark

On May 31, 2010 Elko announced an agreement with the Norwegian Energy Company ASA (Noreco) to farm in to the 02/05 license with a 47% working interest and Elko would retain 33% and the remaining 20% would continued to be held by the Danish North Sea Fund (DNSF). As announced at that time, the 02/05 partners were engaged in further technical studies to optimize the location of the first exploration well through which the partners intend to test the overall Rotliegendes play concept.

The studies overall technical risk assessment concluded that the optimal drilling location, to test the Rotliegendes play, was outside of the 02/05 license, in an area which extends immediately to the west of the 02/05 license. The extension of the Rotliegendes reservoir has been mapped in detail on 2D seismic data, reprocessed 2D seismic data and some 3D seismic data.

Subsequently, the 02/05 license Group submitted an application to the Danish Energy Agency for an adjoining area immediately to the west of the 02/05 license area. The application was made in the same working interest percentages as in the 02/05 license, namely Noreco 47% and operator, DNSF 20%, Elko 33%. The application also contained a proposal for a significant partial relinquishment of the original 02/05 licensed area.

Elko is pleased to announce that the 02/05 license group has been awarded a new license 01/11 of some 1900 square km, immediately to the west of the original 02/05 license area and covering the location described in paragraph 2 above. The 02/05 license group has relinquished 3645 square km of the original 02/05 license. The balance of 1745 square km of the original 02/05 license area combined with the new license totals 3645 square km. The new license 01/11 requires that an exploration well is drilled no later than 24 months after issuance of the license. The 01/11 license is for an overall six year period and has a series of work program commitments and options as are typical in licenses of this nature. The 01/11 partners have already selected the specific well location and intend to drill the well in 2011. The well will be known as 'Luna'.

The 'Luna' well location has been selected to test the Rotliegendes play in the optimum position in terms of reservoir quality, thickness and hydrocarbon charge for the combined prospective area. The 'Luna' well is located in a down faulted half graben with increased chance of having reservoir preserved and higher chance of successful hydrocarbon charge, being closer to the prolific Danish Central Graben kitchen area. The 'Luna' well location benefits from the fact that 3D seismic is available at the chosen location.

Elko intends to update the current version of the Danish acreage Competent Persons Report (CPR) which only covers the original 02/05 license, to reflect the new combined area. When completed, the new CPR will be posted on Elko's website (www.elkoenergy.com). The current version of the CPR is available on the Elko website.

Further updates regarding the drilling of this well will be provided as appropriate.

Peter Moir,

President

February 1, 2011"

Qualified Person

In accordance with AIM Guidelines, Peter Moir, B.Sc. Civil Engineering, M.Eng. Petroleum Engineering, UK Chartered Engineer, President of Elko Energy Inc. and CEO of Xtract Energy plc is the qualified person as defined in the Guidance Notes for Mining, Oil and Gas Companies, February 2010, of the London Stock Exchange, that has reviewed the technical information contained in this press release. Mr Moir has more than 30 years experience in technical, operational and commercial aspects of the E&P business.

Enquiries please contact:

About Xtract Energy

Xtract identifies and invests in a portfolio of early stage oil and gas assets and business interests with significant growth potential. The Company aims to work closely with the associated management teams to achieve critical project milestones, to finance early stage asset and business development activity, and then to finance the asset development phase, or if appropriate to crystallise value for all shareholders at a suitable exit point. Xtract aims to achieve returns for our shareholders through access to the significant upside rewards associated with our investments.

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 in the Danish North Sea is a 33% working interest in a 1,745 sq km exploration and production licence 02/05 and a 33% working interest an adjoining 1,900 sq km exploration and production license 01/11, close to the prolific Central Graben oil kitchen. Technical work indicates the potential for significant resources on these combined licenses. Elko also holds a royalty 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 2008-2011. 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.