SOURCE: Xcite Energy Ltd

November 19, 2009 09:00 ET

Xcite Energy Limited ("Xcite Energy" or the "Company") Financial Results for the 3 Month Period Ended September 30, 2009

This Announcement Is Not for Release, Publication or Distribution in or Into the United States

ABERDEENSHIRE, UK--(Marketwire - November 19, 2009) - Xcite Energy Limited Xcite Energy Limited (TSX-V: XEL) (LSE: XEL) (AIM: XEL), a developer of heavy oil assets in the UK North Sea, today announces its results for the 3 month period ended September 30, 2009.

KEY HIGHLIGHTS

--  Formation of the Bentley alliance (the "Alliance"), the management and
    operational structure created by Xcite Energy as the vehicle to direct the
    Bentley field to full field development.
    
--  Agreement reached with Fugro Well Services Ltd ("Fugro") to drill and
    test the first development well on the Bentley field, the 9/3b-R well, on a
    risked basis. Fugro will bear a material percentage of the cost of the well
    as the first Alliance partner.
    
--  Successful fund raising of £2.1 million gross (CAN$3.8 million) in
    early October from new and existing shareholders.
    
--  Drilling of geotechnical test well in Q4 2009 to confirm usability of
    jack-up rig.
    
--  Significant progress made to plan for and engineer the 9/3b-R well in
    Q1 2010.
    
--  Intention to secure additional Alliance partners in advance of 9/3b-R
    well.
    

Richard Smith, Xcite Energy Chief Executive Officer commented:

"We are very pleased with the market's support for our recent fund raising and its positive reaction to the creation of the Bentley alliance with Fugro as the first partner. This represents a significant step forward in the development of the Company and in drilling the first development well in the Bentley field, planned to commence in the first quarter of 2010. This will be a watershed event for the Company and we look forward to continued support from shareholders in order to successfully pursue our strategy."

The Company's Financial Results for the 3 Months Ended September 30, 2009 can be found at the following link:

http://www.rns-pdf.londonstockexchange.com/rns/7683C_-2009-11-19.pdf

Neither 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 changes in market and competition, governmental or regulatory developments and general economic conditions. Additional information identifying risks and uncertainties are contained in the Company's annual information form dated June 30, 2008 and in the annual Management's Discussion and Analysis for Xcite Energy dated March 26, 2009 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
    +44 (0) 1330 826740
    Richard Smith, Chief Executive Officer
    Rupert Cole, Chief Financial Officer

    Strand Hanson Limited (Nomad)
    +44 (0) 20 7409 3494
    James Harris, Director
    Rory Murphy, Director

    Arbuthnot Securities Limited (Broker)
    +44 (0)20 7012 2000
    Andrew Fairclough, Director
    Ed Burbidge

    Pelham Public Relations
    +44 (0) 20 7337 1500
    Mark Antelme, Director

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