SOURCE: Xcite Energy Ltd

March 25, 2010 03:00 ET

Xcite Energy Limited ("Xcite Energy" or the "Company") Financial Results for the Year Ended December 31, 2009

ABERDEENSHIRE, UK--(Marketwire - March 25, 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, is pleased to announce its results for the year ended December 31, 2009. The Company has again made significant progress, the key highlights of which are:

Highlights

  • The company re-processed its 3D seismic to show a most likely recovery estimate of 160 million barrels of oil from the Bentley oil field ("Bentley").

  • Formation of the Bentley Alliance and engaging industry leading partners including BP, AMEC, Transocean and ADTI to assist in the programme to bring Bentley into development.

  • Successful equity capital funding in March 2010, raising £23.5 million net of expenses to drill the 9/3b-R pre-development well on Bentley and for working capital purposes.

  • Secured Challenger Minerals (North Sea) Limited ("CMNS") as farm-in partner to Bentley, whereby CMNS will provide US$4 million towards the costs of the 9/3b-R well for a 4% working interest, thus assigning a US$100 million pre-money valuation to Bentley.

  • Secured a Transocean jack-up rig to drill 9/3b-R pre-development well, subject to contract completion.

  • Now positioned to move forward to drill the 9/3b-R pre-development well with the objective of demonstrating the commercial value of the Bentley oil field.

Richard Smith, Chief Executive of Xcite Energy, commented:

"The latter half of 2009 and the first part of 2010 have seen a significant change of investment sentiment for the smaller oil and gas community and particularly for Xcite Energy, with the securing of industry leading business partners and institutional funding to support us in bringing Bentley into development. We now have the commercial building blocks and finances in place to drill the 9/3b-R pre-development well on Bentley in the summer; a watershed event for the Company."

The Company's full Financial Results for the Year Ended December 31, 2009 can be found at the following link http://www.rns-pdf.londonstockexchange.com/rns/1517J_1-2010-3-24.pdf.

The Company has filed the following reports required under National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities: Form 51-101F1 Statement of Reserves Data and Other Oil and Gas Information; and Form 51-101F3 Report of Management and Directors on Oil and Gas Disclosure. In addition to these forms, the Company has also filed copies of its audited financial statements and management discussion and analysis in respect thereof for the year ended December 31, 2009. These documents can be found for viewing by electronic means on the System for Electronic Document and Analysis Retrieval at www.sedar.com

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 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 826 740

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

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

    Pelham Bell Pottinger Public Relations
    Mark Antelme
    Henry Lerwill
    +44 (0) 20 7337 1500

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