SOURCE: Xcite Energy Ltd

August 18, 2009 09:10 ET

Financial Results for the 3 Month Period Ended June 30, 2009 and Outlook for 2009

ABERDEENSHIRE, UK--(Marketwire - August 18, 2009) - Xcite Energy (TSX-V: XEL) (AIM: XEL) ("Xcite Energy" or the "Company") is a heavy oil company focused on the development of discovered resources in the United Kingdom North Sea. The Company holds a 100% working interest in Block 9/3b, which contains the Bentley field in its entirety, one of the largest undeveloped heavy oil fields in the United Kingdom North Sea.

Xcite Energy is listed on the AIM Market of the London Stock Exchange ("AIM") and the TSX Venture Exchange ("TSX-V").

The Company today announces its results for the 3 month period ended June 30, 2009.

KEY HIGHLIGHTS

--  Successful re-interpretation of the re-processed 3D seismic over the
    Bentley field gives increase in remaining recoverable resources from a full
    field evaluation.
--  Agreement reached with Fugro Well Services Ltd ("Fugro") to drill a
    geotechnical test well as part of the preparation for the 9/3b-R pre-
    development well on the Bentley field, together with a seabed survey during
    Q3 2009.
--  Memorandum of understanding with Fugro providing Xcite Energy with an
    option to drill and test the planned 9/3b-R pre-development well on the
    Bentley field during 2010.
--  Significant progress made with potential industry partners to advance
    the next stages in the development of the Bentley field.
    

2009 OUTLOOK

--  The work programme will continue on Bentley in the context of the
    current economic conditions, including the geotechnical test well and
    seabed survey, together with the planning of and engineering for the 9/3b-R
    pre-development well.
--  Planning for the next phase in the development of the Bentley
    field will continue in the context of the current economic conditions,
    with a successful outcome being targeted with potential industry
    partners offering a range of solutions.
--  The focus remains on re-establishing asset value through industry
    partnerships and, thereby, the recovery of shareholder value.
    

Richard Smith, Xcite Energy Chief Executive Officer commented:

"Following the release of the new Competent Person's Report in February and the 3D seismic update in June, the first half of 2009 has provided further confirmation of the significant recoverable resources in the Bentley field, one of the largest undeveloped fields in the North Sea. We continue to make significant progress with the planning for the pre-development well and beyond, with significant interest in the Bentley field from a range of potential industry partners with differing solutions. We look forward to a productive and focused second half year to regain shareholder value."

The Company's Financial Results for the 3 Months Ended June 30, 2009 can be found at the following link:

http://www.rns-pdf.londonstockexchange.com/rns/6041X_-2009-8-18.pdf


Neither 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.

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 the Company's annual information form dated June 30, 2008 and in the annual Management's Discussion and Analysis for Xcite Energy dated March 26, 2009 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 ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES

Contact Information

  • ENQUIRIES:


    Xcite Energy Limited
    +44 (0) 1330 826 740

    Richard Smith
    Chief Executive Officer

    Rupert Cole
    Chief Financial Officer

    Thomas Weisel Partners International Limited
    +44 (0) 20 7877 4300

    Paul Colucci
    Managing Director

    Jesse Meidl
    Vice President

    Strand Partners Limited
    +44 (0) 20 7409 3494

    James Harris
    Director

    Rory Murphy
    Director

    Pelham Public Relations
    +44 (0) 20 7337 1500

    Mark Antelme
    Director