SOURCE: Xcite Energy Ltd

February 10, 2010 02:06 ET

Xcite Energy Limited ("Xcite Energy" or the "Company") Signs Letter of Intent for Heavy Duty, Deep Water Jack-Up Rig

ABERDEENSHIRE, UK--(Marketwire - February 10, 2010) -

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES

Xcite Energy (TSX-V: XEL) (AIM: XEL) (LSE: XEL), a developer of heavy oil assets in the UK North Sea, is pleased to announce that it has exchanged a letter of intent with Applied Drilling Technology International ("ADTI"), the well management arm of Transocean Drilling U.K. Limited, for the provision of a heavy duty, deep water jack-up drilling unit to undertake the drilling and testing of the 9/3b-R well on the Company's Bentley field.

Further details are expected to be announced after the contract is completed, which is subject to various approvals, including Xcite Energy board approval, available funding and regulatory approvals.

ADTI has also joined the Bentley Alliance, the management and operational structure created by Xcite Energy as the vehicle to direct the Bentley field to full field development. The addition of the ADTI technical expertise and project management skills is expected to greatly assist Xcite Energy in moving the Bentley field towards production.

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 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.

Contact Information

  • ENQUIRIES:

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

    Rupert Cole
    Chief Financial Officer
    +44 (0) 1330 826740

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

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

    Pelham Bell Pottinger
    Mark Antelme
    Director
    +44 (0) 20 7337 1500

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