Drawdown on Equity Line Agreement

ABERDEENSHIRE, UNITED KINGDOM--(Marketwire - Jun 13, 2012) -

   NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART
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                           SUCH JURISDICTION


                          TSX-V, LSE-AIM: XEL




13 June 2012

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

                   Drawdown on Equity Line Agreement

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 GBP2.29 million (CAD$3.66 million).
This draw down has been undertaken at a price of 87p (CAD$1.39) per
share and will result in the issue of 2,584,693 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 to AIM ("Admission") of the
New Ordinary Shares upon conditional approval of the share issue by the
TSX Venture Exchange. The New Ordinary Shares will 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 2,584,693 New Ordinary Shares the total Ordinary Shares in the
Company in issue will be 250,278,323.

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
Michael Shaw                 Partner

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



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

END