SOURCE: Xcite Energy Limited

July 29, 2011 02:00 ET

Results for the 3 Month Period Ended 30 June 2011

ABERDEENSHIRE, UNITED KINGDOM--(Marketwire - Jul 29, 2011) -


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                         TSX-V, LSE-AIM: XEL

29 July 2011

                        Xcite Energy Limited

                 ("Xcite Energy" or the "Company")

          Results for the 3 Month Period Ended 30 June 2011

Xcite Energy is pleased to announce its results or the 3 months ended
30 June 2011.

The second quarter of 2011 has seen important progress in the Company's
plans for the First Stage Production ("FSP") programme on the Bentley
field, with the Rowan Norway harsh environment, deep water jack-up rig
being delivered on time to Rowan in Singapore from the Keppel FELS
construction yard. The rig will now be transported to Dundee using the
OHT Hawk heavy lift vessel, where it will undergo final testing and
will be crewed and equipped for its deployment onto the Bentley field.

Preparations for the final submission to the Department of Energy and
Climate Change ("DECC") of a Field Development Plan for the Bentley
field remain on track and are consistent with the rig deployment
timing.

Financing discussions are progressing satisfactorily, with a number of
different options being assessed in parallel with the submission of the
Field Development Plan to DECC.

On 26 July 2011 the Company announced that a submission had been made
to DECC of the Environmental Statement for the planned First Stage
Production on the Bentley field. This is a standard DECC requirement in
connection with, but not simultaneous with the submission of a field
development plan.

The completion of the Reserves Assessment Report ("RAR") on the Bentley
field and the announcement of its principal findings as published by
the Company on 10 May 2011 and followed by the announcement of the
filing of the Material Change Report on 17 May 2011 has, in
management's opinion, de-risked the field significantly and greatly
enhanced its value by upgrading it to reserves status.

The RAR focused on the reserves accessed from a single drill centre in
the northern area of the field relating to the FSP, together with the
Second Stage Production ("SSP") from the same drill centre. Together
the FSP and the SSP comprise the core area of the reservoir.

The RAR assigned a NPV10 (after tax) value per barrel as approximately
$14.20 for the 28 million barrels 2P reserves in the FSP, or in
aggregate $396 million. The RAR assigned a NPV10 (after tax) value per
barrel as approximately $11.00 for the 87 million barrels of "best"
estimate contingent resources in the SSP, or in aggregate $961 million.

As no technical contingencies remain with respect to the contingent
resources in the SSP, the RAR confirms that these would be converted to
an equivalent volume of reserves following the Company's decision to
pursue the development of the SSP and the approval by DECC of its
development plan for this purpose. On this basis, the Company intends
to seek approval from DECC for the FSP and SSP which, if obtained
together with appropriate funding, would enable it to (i) move forward
with the FSP; (ii) move forward with the SSP at an appropriate time
that suits its business objectives; and (iii) upgrade the SSP
contingent resources to reserves status.

Richard Smith, Xcite Energy Chief Executive Officer, commented:"We are
pleased that the Reserves Assessment Report has provided
independent third party validation of the value and commerciality of
the Bentley field, following the excellent outcome from the successful
9/3b-6 and 6Z wells. This re-confirmed management's belief in the
commercial value of Bentley and its potential as one of the largest
undeveloped fields in the UK sector of the North Sea. We are making
significant progress towards the First Stage Production which, if
successful, will be a key milestone in our objective to determine full
field reserves in due course and deliver significant value for
shareholders."

The Company's unaudited Financial Results for the 3 Months Ended 30
June 2011 can be found at the following link:

 http://www.rns-pdf.londonstockexchange.com/rns/2600L_-2011-7-28.pdf 

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.

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.

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.

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 October
26, 2010 and in the annual Management's Discussion and Analysis for
Xcite Energy dated March 24, 2010 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 information is provided by RNS
          The company news service from the London Stock Exchange

Contact Information

  • ENQUIRIES:

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

    Oriel Securities
    (Joint Broker and Nomad)
    Emma Griffin
    Partner
    Simon Edwards
    Partner
    +44 (0) 207 710 7600

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

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

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