SOURCE: Xcite Energy Limited

October 25, 2012 10:19 ET

UK 27th Offshore Licensing Round Offers

ABERDEENSHIRE, UNITED KINGDOM--(Marketwire - Oct 25, 2012) -

TSX-V: XEL


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LSE-AIM, TSX-V: XEL

25 October 2012

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

UK 27th Offshore Licensing Round Offers

Xcite Energy is pleased to confirm that the UK Department of Energy and Climate Change has offered Xcite Energy Resources Limited ("XER") licences over Blocks 9/4 (part), 9/8b and 9/9f (split) as applied for in the UK 27th Offshore Licensing Round.

These blocks contain four significant prospects (Chadwick, Cartwright, Camm and Clement), which will be the subject of evaluation within the four year initial license term on a drill or drop basis. The addition of these blocks to the XER portfolio enhances the development potential of the greater Bentley area and forms part of the Company's strategy for growth.

Commenting on the offers, Rupert Cole, CEO, said:"The offer of these Blocks is a welcome expansion of the Xcite portfolio. Whilst we remain focused on the development of the Bentley field, these additions clearly demonstrate our intent to grow Xcite into a significant North Sea player."


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

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

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 22 March 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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