Drawdown on Equity Line

ABERDEENSHIRE--(Marketwire - Dec 1, 2011) -

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART
DIRECTLY OR INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO
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SUCH JURISDICTION

                         TSX-V, LSE-AIM: XEL



1 December 2011


                        Xcite Energy Limited
                   ("Xcite Energy" or the "Company")

                        Drawdown on Equity Line

Xcite Energy announces that it has drawn down on its Standby Equity
Distribution Agreement ("SEDA") with YA Global Master SPV Ltd
("Yorkville") as announced on 28 September 2010 in the amount of GBP2.0
million (CAD$3.2 million). This draw down has been undertaken at a
price of GBP1.1025 (CAD$1.764) per share and will result in the issue of
1,814,059 ordinary shares of no par value in the capital of the Company
(the "SEDA Ordinary Shares") to Yorkville. 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 SEDA and except in accordance with Canadian
securities laws and with prior written approval of the TSX Venture
Exchange, the SEDA 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
SEDAOrdinaryShares upon approval of the share issue by the TSX
Venture Exchange.The SEDAOrdinaryShareswill 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 1,814,059 Ordinary Shares the total Ordinary Shares in the Company
in issue will be 190,810,070.
ENQUIRIES:

Xcite Energy Limited                               +44 (0) 1483 549 063
Richard Smith                Chief Executive
                             Officer
Rupert Cole                  Chief Financial
                             Officer

Oriel Securities (Joint Broker                     +44 (0) 20 7710 7600
                  and Nomad)
Emma Griffin                 Partner
Simon Edwards                Partner


Morgan Stanley (Joint Broker)                      +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