  Extended adjacency matrix of a graph with $n$ vertices is a real symmetric
marix of order $n\times n$ whose $(i,j)$-th entry is the average of the ratio
of the degree of the vertex $i$ to that of the vertex $j$ and its reciprocal
when $i,j$ are adjacent, and zero otherwise. Aggregate of absolute eigenvalues
of the extended adjacency matrix is termed as the extended energy.
  In this paper, the concept of extended vertex energy is introduced and some
bounds of extended vertex energy are obtained. From there, we obtain some new
upper bounds of the extended energy of a graph. Next, we obtain two
inequalities which relate the extended energy with the ordinary graph energy.
One of those inequalities resolves a conjecture which states that for every
graph, ordinary energy can never exceed the extended energy. Using the
relationships of extended energy and ordinary energy, we obtain new bounds of
extended energy involving the order, size, largest and smallest degree of the
graph. We show that these new bounds are improvements of some existing bounds.
Finally, some improved bounds of Nordhaus-Gaddum-type are also found.
