Xcite Energy Limited ("Xcite Energy" or the "Company") Update on 9/3b-5 Appraisal Well


ABERDEENSHIRE, UK--(Marketwire - January 11, 2008) -


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 heavy oil company focused on the development of discovered resources in the UK North Sea, today provides an update on the 9/3b-5 appraisal well on the Bentley field.

As anticipated, the well has reached its target depth on schedule and the Company continues to expect testing to be completed before the end of January 2008.

The Bentley heavy oil discovery is located on Block 9/3b, in which Xcite Energy holds a 100% interest, 160km east of the Shetland Isles and covering an area of approximately 200 km². Bentley has been drilled by three of the four wells on Block 9/3b, being wells 9/3-1 (Amoco, 1977), 9/3-2A (Conoco, 1983) and 9/3-4 (Conoco, 1986).

The TSX Venture Exchange does not accept 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 Xcite Energy' prospectus filed with the Canadian securities regulatory authorities, available at www.sedar.com.

This information is provided by RNS

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Contact Information: Enquiries: Xcite Energy Richard Smith Chief Executive Officer Rupert Cole Chief Financial Officer +44 (0) 1330 826 740 Thomas Weisel Partners (UK) Limited Paul Colucci Managing Director Paul Newman Managing Director +44 (0) 20 7290 9716 Strand Partners Ltd. James Harris Director Warren Pearce Associate Director +44 (0) 20 7409 3494 Pelham Public Relations Alisdair Haythornthwaite Director Katherine Stewart Account Executive Lucy Frankland Account Executive +44 (0) 20 7743 6676