SOURCE: Xcite Energy Limited

February 01, 2012 11:40 ET

DECC Approval Process Update

ABERDEENSHIRE, UNITED KINGDOM--(Marketwire - Feb 1, 2012) -




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



                       TSX-V, LSE-AIM: XEL







1 February 2012



                      Xcite Energy Limited

                ("Xcite Energy or the ("Company")





                 DECC Approval Process Update



Further to the announcement of 1 December 2011, the Company is pleased
to provide an update on the DECC approval process. In the opinion of
the management team of Xcite Energy Resources Limited ("XER"), all of
the broad operational and planning questions from the Department of
Energy and Climate Change ("DECC") with respect to Phase 1A and Phase
1B of the Bentley First Phase Development have been addressed. A number
of detailed questions on technical matters are currently being resolved
and it is XER's expectation that this will be completed as a matter of
due process.



DECC has issued a letter of comfort to XER to confirm its support for
the Field Development Plan ("FDP") for the Bentley field and is broadly
satisfied with the phased development approach from a resource recovery
perspective. This now leaves the formal approval of the FDP subject to
funding and any amendments to the FDP that may be proposed by XER
following the results of Phase 1A, with the re-submission of the FDP
expected in the latter half of 2012.



By agreement with DECC, the approval of the Phase 1A work programme
will now be managed through the conventional Well Operations
Notification System ("WONS"). It is the Company's expectation that DECC
will give its approval for the Phase 1A WONS in the near future,
enabling XER to commence the 2012 drilling programme and achieve an
expected First Oil date in the first half of 2012.



The Environmental Statement ("ES") with respect to the overall Field
Development Plan is expected to be approved by DECC in a similar
timeframe to the WONS. It is not expected that the ES will require to
be re-submitted to DECC.



Based on the letter of comfort from DECC, it remains the Company's
expectation that it will be able to convert the currently assigned
Contingent Resources to 2P Reserves.





ENQUIRIES:

Xcite Energy Limited                           +44 (0) 1483 549 063

Richard Smith                Chief Executive
                             Officer

Rupert Cole                  Chief Financial
                             Officer


Oriel Securities (Joint Broker and Nomad)      +44 (0) 207 710 7600

Emma Griffin                 Partner

Simon Edwards                Partner


Morgan Stanley (Joint                           +44 (0) 207 425 8000
Broker)
Andrew Foster                Managing Director


Pelham Bell Pottinger                           +44 (0) 207 861 3232

Mark Antelme                 Director

Henry Lerwill                Account Director


Paradox Public Relations                        +1 514 341 0408

Jean-Francois Meilleur       Consultant



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.



Oriel Securities which is authorised and regulated in the United
Kingdom by the Financial Services Authority, is acting exclusively for
Xcite Energy and for no one else in connection with the subject matter
of this announcement and will not be responsible to anyone other than
Xcite Energy for providing the protections afforded to its clients or
for providing advice in connection with the subject matter of this
announcement.



Morgan Stanley which is authorised and regulated in the United Kingdom
by the Financial Services Authority, is acting exclusively for Xcite
Energy and for no one else in connection with the subject matter of
this announcement and will not be responsible to anyone other than
Xcite Energy for providing the protections afforded to its clients or
for providing advice in connection with the subject matter of this
announcement.



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 October
26, 2010 and in the annual Management's Discussion and Analysis for
Xcite Energy dated March 24, 2011 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.







                    This information is provided by RNS
          The company news service from the London Stock Exchange

END

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