SOURCE: Xcite Energy Ltd

August 27, 2010 10:48 ET

Xcite Energy Limited ("Xcite Energy" or the "Company") Financial Results for the 3 Month Period Ended June 30, 2010

ABERDEENSHIRE, UK--(Marketwire - August 27, 2010) - This announcement is not for release, publication or distribution in or into the United States.

Xcite Energy (TSX-V: XEL) (LSE: XEL) (AIM: XEL), a developer of heavy oil assets in the UK North Sea, today announces its unaudited financial results for the 3 month period ended June 30, 2010.

Highlights

  • Strong balance sheet with cash of circa £23.3 million as at June 30, 2010.

  • Additional gross funding raised of circa £5.8 million since balance sheet date.

  • Contracted the Ocean Nomad semi-submersible rig to drill the 9/3b-R pre-development well as planned in 2010.

  • Plans are now approaching completion to drill the 9/3b-R pre-development well, with the objective of demonstrating the commercial value of the Bentley oil field.

Richard Smith, Xcite Energy Chief Executive Officer commented:

"This has been another important period for the Company and we have now put in place the key elements of the work programme for the 9/3b-R well. We look forward to a transformational few months as we seek to demonstrate the commercial value of the Bentley field."

The Company's unaudited Financial Results for the 3 Months Ended June 30, 2010 can be found at the following link:

http://www.rns-pdf.londonstockexchange.com/rns/7743R_-2010-8-27.pdf

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements 

Certain statements contained in this announcement constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to the Company's future outlook and anticipated events or results and, in some cases, can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "target", "potential", "continue" or other similar expressions concerning matters that are not historical facts. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects and opportunities. While the Company considers these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what we currently expect. These factors include risks associated with the oil and gas industry (including operational risks in exploration and development and uncertainties of estimates oil and gas potential properties), the risk of commodity price and foreign exchange rate fluctuations and the ability of Xcite Energy to secure financing. Additional information identifying risks and uncertainties are contained in the Company's annual information form dated December 8, 2009 and in the annual Management's Discussion and Analysis for Xcite Energy dated March 24, 2010 filed with the Canadian securities regulatory authorities and available at www.sedar.com. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.

Contact Information

  • ENQUIRIES:

    Xcite Energy Limited
    Richard Smith
    Chief Executive Officer
    Rupert Cole
    Chief Financial Officer
    +44 (0) 1330 826740

    Arbuthnot Securities Limited (Broker)
    (Nomad and Broker)
    Antonio Bossi
    Director
    +44 (0)20 7012 2000

    Pelham Bell Pottinger
    Mark Antelme
    Director
    Henry Lerwill
    +44 (0) 20 7861 3232

    Paradox Public Relations
    Jean-Francois Meilleur
    Consultant
    +1 514 341 0408