SOURCE: Xcite Energy Limited

January 30, 2012 02:17 ET

Drawdown on Equity Credit Facility

ABERDEENSHIRE, UNITED KINGDOM--(Marketwire - Jan 30, 2012) -




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DIRECTLY OR INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO
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SUCH JURISDICTION



                      TSX-V, LSE-AIM: XEL



                        30 January 2012

                     Xcite Energy Limited

              ("Xcite Energy" or the "Company")



              Drawdown on Equity Credit Facility



Xcite Energy announces that it has drawn down on its Equity Line
Agreement (the "facility") with Esousa Holdings, LLC ("Esousa") dated
16 December 2011 in the amount of GBP3.537 million (CAD$5.571million).
This draw down has been undertaken at a price of GBP0.9395 (CAD$1.480)
per share and will result in the issue of 3,765,060 ordinary shares of
no par value in the capital of the Company (the "New Ordinary Shares")
to Esousa. This funding will be used as future working capital for the
Company and to progress towards first oil from the Bentley field.

Subject to the terms of the facility and except in accordance with
Canadian securities laws and with prior written approval of the TSX
Venture Exchange, the New Ordinary Shares may not be sold or otherwise
traded on or through the facilities of the TSX Venture Exchange or
otherwise in Canada or to or for the benefit of a Canadian resident
until the date that is four months and one day from the date of issue.

Application will be made for the admission toAIM("Admission")ofthe
NewOrdinaryShares upon conditional approval of the share issue by the
TSX Venture Exchange.The NewOrdinaryShareswill rank pari passu
with the Company's existing issued ordinary shares (each, an "Ordinary
Share").

Subject to approval by the TSX Venture Exchange, following the issue of
the 3,765,060 New Ordinary Shares the total Ordinary Shares in the
Company in issue will be 209,770,424.

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) 20 7710 7600

Emma Griffin                 Partner

Simon Edwards                Partner


Morgan Stanley (Joint                            +44 (0) 20 7425 8000

Andrew Foster                Managing Director


Pelham Bell Pottinger                            +44 (0) 20 7861 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.



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

END

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