Extrem Energy Continues to Test Sarikiz Well

Xtract Energy Plc is pleased to provide the following update on the progress of the production test being carried out at Sarikiz-2 by its Turkish joint venture Extrem Energy A.S.

Following the successful production test of the interval between 1710-1715m which indicated an oil flow rate of approximately 180 bbl/day, further successful production tests have been completed on three additional intervals, 1646-1650m, 1652-1657m and 1559.5-1561.5 m.

Three shallower sandstone intervals between 1483m and1549m, representing 24 m of reservoir thickness, remain untested. The interval between 1544-1549 m is expected to be perforated and tested today with results becoming available over the weekend. Following this next test a decision will be taken as to which intervals will be used to form the basis of the initial production from the Sarikiz field. Once these intervals have been selected, they will be opened so as to provide combined flow. The initial commercial oil production is expected to meet or exceed the pre-drill estimate of 500 bbl/day.

Extrem Energy now regards the well as commercial and is proceeding to the design and construction of the surface facilities to establish regular oil treatment and sales.

With the benefit of the knowledge gained from Sarikiz-2, Extrem Energy is now planning the development of the whole field. It is intended that a further appraisal and production well will be drilled on the field during 2009 and that production will be increased by re-entering the abandoned East Sarikiz-1 well which was drilled and left cased in 2001 by the previous licence-holder. Comparison of the drilling logs from East Sarikiz-1 indicates the presence of similar oil-bearing sandstone layers as at Sarikiz-2. These layers were not tested at the time because the focus then was on a deeper target. The possibility of these two additional producing wells, together with the application of production enhancements at Sarikiz-2, gives confidence that Extrem Energy will be able to grow production levels.

Xtract holds 27% of Extrem Energy and has the option of increasing its shareholding to 34% by contributing a further investment of US$1.75m before 5 August 2009.