Hi Blayd the settings are correct.
If you after you have performed the extract command, click the manipulator tool once (the lightblue circle above the red arrow in the top screenshot) and you can start moving the extracted geometry in world coords (origin axis X, Y, Z)
You may want right click the bottom geometry and select object mode.


Try it on a simple poly cube with 2 divisions in height and try extract the bottom half by selecting the faces you want to extract, apply extract, click manipulator once, you should now see the green and white wires, right click -> object mode, select the bottom object, move it out of the way.
Just to get a feel for the process.

Off topic if this is a game model you typically don't want to extract the bottom half at all. If you are about to UV you can work with selections, view selected, hide and other tricks for easier UV'ing rather than extracting geometry.