Xtract Regulatory News (XTR)

4th May 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") to its shareholders on Tuesday 3rd May 2011

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

Business Update

Denmark

Elko announced on February 1, 2011, that the 02/05 license group had been awarded a new license offshore Denmark 01/11 located immediately to the west of the original 02/05 license area. The 01/11 partners also announced that they intend to drill the 'Luna' well in 2011 through which the partners intend to test the overall Rotliegendes play concept, having already selected the specific well location on the 01/11 license area.

The Luna prospect is located in a small half graben with the pinch out edge to the south east of the structure. The Rotliegendes reservoir is thought to have a high probability of being present at this location based on the seismic interpretation. Uncertainty still exists however on which seismic event represents the top reservoir and where the pinch out occurs.

In addition to the uncertainty on the pinch out position, there is a possibility that the Rotliegendes does not, in fact, pinch out but continues up dip into Lead A. It is therefore possible that Luna and Lead A are connected and represent one feature. The current well location which targets the Luna prospect was picked in order to maximize the information gathered by the well and is designed to address this uncertainty.

Elko is pleased to confirm that the Luna well will be drilled by the 'Maersk Resolve' jack up drilling unit. The Maersk Resolve is currently drilling on contract to Maersk Oil and Gas in Denmark. As such the Maersk Resolve is coming to the 01/11 partnership drill ready, a short mobilization distance from the Luna prospect location and already fully accredited by the Danish authorities for drilling operations in Denmark. The rig is currently expected to be available for Luna in mid August 2011 but this date could be a few weeks earlier or later dependent on completing it's current drilling activity. The Luna drilling program is expected to take about 1 month duration.

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

The latest Elko update of the Competent Persons Report (CPR) to reflect the new combined 01/11 and 02/05 license area is available on the Elko Energy website (www.elkoenergy.com) under the news section.

Netherlands

Elko announced in September 2010 that Elko Energy B.V. and Elko Exploration B.V., wholly owned subsidiaries of Elko, had entered into an agreement relating to its licenses in Blocks P1 and P2 offshore the Netherlands with Chevron Exploration and Production Netherlands B.V. ("Chevron"). In consideration for all of its interests in the Blocks, Elko will receive an overriding royalty up to 5% of the sales value from Chevron gas delivered into the Dutch National Transmission System and Chevron condensate delivered onshore. Elko announced in December 2010 that transfer of operatorship and regulatory approvals had been completed.

Elko is pleased to advise that Chevron intends to drill the first well on the P2 block since the acquisition, in the fourth quarter of 2011. The P2-10 well will be drilled by the 'Noble Byron Welliver' jack up drilling rig. The rig will commence a drilling program for Chevron on its B13 satellite development in the Netherlands, expected to start in June 2011 and subject to that drilling activity, is currently anticipated to be available for the P2-10 well around September 2011.

The P2-10 appraisal well targets an existing gas discovery on the P2 block and one of the main objectives is to evaluate commercial hydrocarbon flow rates from an extended reach horizontal well within the Rotliegendes sandstone reservoir. The well program is expected to take up to 100 days duration.

Dutch state entity Energie Beheer Nederland B.V. ("EBN") participates for 40% in the current exploration licenses for Blocks P1 and P2, through an Agreement of Cooperation.

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

Joint Elko Energy and Xtract Energy Task Force

The combined task force made up of both Elko and Xtract directors which was announced in Q3 2010 to identify the strategic options open to both companies, intends to report on that exercise within the second quarter of 2011. The end goal of the task force activity is to unlock the optimum value for all shareholders in both companies.

Peter Moir

President

May 3, 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")

Following execution of a fully termed Assignment Agreement and associated Royalty Agreement, Xtract will hold a royalty interest over the license portfolio currently owned by Extrem Energy, onshore and offshore Turkey.

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 an exploration and production licence 02/05 and a 33% working interest an adjoining 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% 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.