SOURCE: Xcite Energy Limited

August 03, 2012 02:00 ET

Operational Update - Pre-production Flow Test

ABERDEENSHIRE, UNITED KINGDOM--(Marketwire - Aug 3, 2012) -


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                      TSX-V, LSE-AIM: XEL


3 August 2012


                      Xcite Energy Limited
                ("Xcite Energy" or the "Company")
           Operational Update - Pre-production Flow Test


The Company is pleased to announce that the pre-production flow test is
progressing well.

Following planned equipment maintenance, offtake procedure testing and
further optimisation of process equipment, the 9/03b-7 well has been
producing at a stabilised rate of approximately 3,200 barrels per day
with no associated basic sediments or water. This is viewed as being
well within the operational performance of the reservoir.

Bentley crude oil collected so far in the Scott Spirit tanker is in
excess of 47,000 barrels of dry oil and thus achieves another major
technical objective of the flow test.

Early data gathered from down hole pressure and temperature responses
demonstrates that the underlying aquifer support is strong and
consistent, which is a good indicator for longer term productivity of
the reservoir.

The pre-production flow test will be continued in order to determine
the reservoir fluid behaviour and to gather data to assist in the
optimisation of ultimate life-of-field performance.

Commenting on today's announcement Steve Kew, Chief Operating Officer,
said:"With the Phase 1A work programme thus far having once again
demonstrated the expertise and delivery capabilities of the Xcite team,
we look forward to completing the programme and moving forward with the
important next stages in the development of the Bentley field."

ENQUIRIES:

Xcite Energy Limited                       +44 (0) 1483 549 063
Rupert Cole / Steve Kew

Oriel Securities (Joint Broker and Nomad)  +44 (0) 207 710 7600
Emma Griffin / Michael Shaw

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

Pelham Bell Pottinger                      +44 (0) 207 861 3232
Mark Antelme / Henry Lerwill

Paradox Public Relations                   +1 514 341 0408
Jean-Francois Meilleur

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 26 October
2010 and in the Management's Discussion and Analysis for Xcite Energy
dated 25 July 2012 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.

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.





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