SOURCE: Xcite Energy Limited

May 16, 2013 11:06 ET

Results of Annual and Special Meeting

ABERDEENSHIRE--(Marketwired - May 16, 2013) -

TSX-V:XEL   

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                          TSX-V, LSE-AIM: XEL




16 May 2013

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


Results of Annual and Special Meeting and Chairman's Opening Remarks

Xcite Energy is pleased to announce the results of its Annual and
Special Meeting held on 16 May 2013.

The holders of ordinary shares of the Company approved the following
matters at the Annual and Special Meeting, with votes in favour shown
in brackets as a percentage of total votes cast:

(1) the reappointment of the following nominated directors to the
    board of directors of the Company and for them to continue in 
    office in accordance with the Company's Articles of Association:


            Rupert E. Cole (98.9%)
            Scott R. Cochlan (95.8%)
            Timothy S. Jones (94.9%)
            Stephen A. Kew (99.8%)
            Gregory J. Moroney (96.3%)
            Roger S. Ramshaw (95.5%)


(2) the reappointment of BDO LLP as auditors for the ensuing year and
    the authorisation for the directors of the Company to fix their
    remuneration (99.9%)

(3) a resolution to ratify and confirm the Stock Option Plan of the
    Company dated 26 September 2007, as amended (94.6%)

(4) a resolution to ratify and confirm the existing Shareholder Rights
    Plan of the Company dated 30 November 2010, as amended (96.6%)


At today's AGM the Chairman, Roger Ramshaw, made the following opening
remarks:"2012 saw the safe and successful conclusion of the pre-production well
test on the Bentley Field, which concluded in mid-September.This was
a very significant achievement, for a company of our size, to manage a
$250 million offshore work programme safely, on budget and on time,
over a 10 month period. We produced 150,000 barrels of Bentley crude,
blended it offshore and successfully sold it through our marketing
partner, BP. We also captured significant quantities of data over the
course of the test, which has provided the evidence to update our
reserves report so comprehensively and given us a high degree of
confidence in the new Field Development Plan for Bentley.From any
perspective, this is something of which we can be very proud."The real impact of the 2012 well test is an increase in confidence in
how the field might be developed. The test encompassed all aspects
from drilling, through processing and flow assurance, to blending and
offtake to market. We have been able to implement all the lessons
learnt into a more robust and efficient Field Development Plan. The
months of analysis and modelling following the well test, together with
the interpretation of our new 3D seismic over Bentley, have resulted in
far greater certainty in the field and its development plan, as
evidenced by the recent and substantial increase in recoverable
reserves and asset value."Our 2P Reserves for Bentley now stand at 250 million barrels, with a
discounted net present value after tax of approximately $2.2 billion.
This represents an increase of over 116% against the previously
reported 2P Reserves of 116 million barrels)."Heavy oil fields generally have long production lives, and Bentley is
no exception with a 35 year Reserves profile out to the year 2050,
reflecting the current design life of facilities used in the North
Sea. TRACS, our independent reserves auditor, recognises that there is
additional economic production from Bentley of a further 20 years
beyond this initial period (out to the year 2070) and has assigned a
further 46 million barrels of Contingent Resources to this 20-year
period. We believe that by more detailed work on areas such as
optimising the field and extending field life, there is the potential
to access these Resources and deliver further low-risk upside."We also have other areas of potential future growth through the
implementation of enhanced oil recovery techniques on the field, as
well as exploration on adjacent assets, including those awarded in the
recent 27th Licensing Round. These are at an early stage and we would
expect to progress them systematically, as we have always done."Not surprisingly, we are greatly disappointed by the share price
performance, especially following the great result we have delivered,
but we will continue to move forward and focus on what we can control,
which is the development of Bentley. Securing funding is a critical
element of this and we have recently begun a farm-out process to find a
suitable partner. We believe it should be possible to materially
increase our RBL facility as a result of the Reserves upgrade and will
be engaging with our existing and new banks to progress this. We will
also be re-submitting an updated FDP in the coming months."We believe heavy oil's time has come in the North Sea, as evidenced by
the very significant investments currently being made by Statoil (and
partners) into the Bressay field just to the North of Bentley, the
Mariner field to the south of Bentley, and EnQuest (and Partners)
expected commitment to develop the Kraken field to the west of
Bentley. Together, these fields represent very substantial sources of
future long-term oil production from the North Sea, which as currently
forecast, would make substantial long-term contributions to the UK
economy."Finally, I would once again like to thank all of the Xcite team for
their hard work, expertise and dedication to this outstanding Bentley
project, which the Board has been very pleased and proud to be part of
over the last few years."

For further details, please see the management proxy circular dated 9
April 2013 available on the Company's website and at  www.sedar.com .



ENQUIRIES:                                      

Xcite Energy Limited                             +44 (0) 1483 549 063
Rupert Cole / Andrew Fairclough                 

Liberum Capital Limited (Joint Broker and Nomad) +44 (0) 203 100 2000
Clayton Bush / Tim Graham                       
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 annual Management's Discussion and Analysis for Xcite
Energy dated 25 March 2013 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.


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

END

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