SOURCE: Xcite Energy Limited

July 19, 2011 02:00 ET

Xcite Energy Limited Drawdown on Equity Line

ABERDEENSHIRE, UNITED KINGDOM--(Marketwire - Jul 19, 2011) -




THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR
                      INTO THE UNITED STATES

                      TSX-V, LSE-AIM: XEL

19 July 2011


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

                   Drawdown on Equity Line



Xcite Energy announces that it has drawn down on its Standby Equity
Distribution Agreement ("SEDA") with YA Global Master SPV Ltd
("Yorkville") in the amount of GBP4.2 million (CAD$6.46 million). This
draw down has been undertaken at a price of GBP1.567 (CAD$2.41) per
share and will result in the issue of 2,680,451 ordinary shares of no
par value in the capital of the Company (the "New Ordinary Shares") to
Yorkville. This funding will be used as future working capital for the
Company and to progress towards the first stage production of the
Bentley field.

Subject to the terms of the SEDA and except in accordance with Canadian
securities laws and with prior written approval of the TSX Venture
Exchange, the shares issued to Yorkville under this draw down may not
be sold or otherwise traded on or through the facilities of the TSX
Venture Exchange or otherwise in Canada or to or for the benefit of a
Canadian resident until the date that is four months and one day from
the date of issue.

Application will be made for the admission to AIM("Admission")of the
New Ordinary Shares upon approval of the share issue by the TSX Venture
Exchange.The New Ordinary Shares will rank pari passu with the
Company's existing issued Ordinary Shares.


ENQUIRIES:

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

Oriel Securities                                 +44 (0) 207 710 7600
(Joint Broker and Nomad)
Emma Griffin            Partner
Simon Edwards           Partner
Morgan Stanley (Joint Broker)                    +44 (0)207 425 8000
Andrew Foster           Managing Director

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

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

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.



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

END

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