SOURCE: Xcite Energy Limited

December 12, 2011 02:00 ET

Xcite Energy Limited - Shareholder Update

ABERDEENSHIRE, UNITED KINGDOM--(Marketwire - Dec 12, 2011) -


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SUCH JURISDICTION



                           TSX-V, LSE-AIM: XEL



12 December 2011


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



                            Shareholder Update





Over recent days we have received a number of messages from our
shareholders expressing concern with respect to the current share price
and requesting more information from the Company. The Board of
Directors and management team recognise your concern and your desire
for timely information.



We remain highly committed to the successful commercial development of
the Bentley field, one of the largest undeveloped oil fields in the UK
North Sea. We shall continue to provide timely news updates based on
the regulatory environment that governs our public listing status.



We recognise that the announcement of 1 December 2011 comprised an
evolution of our field development plans from those set out earlier in
the year. We believe these changes provide the Company with a viable
and more financially efficient solution to achieve our shared objective
of commercialising the Bentley field.



The update to the market of these plans was not previously announced as
it has not yet received a response from DECC. We had hoped, and remain
optimistic, that this response will be received shortly and that the
field development update could have been made in conjunction with the
announcement of a number of other important events for the Company in
the coming weeks.



We are currently waiting for the DECC response with respect to the
Field Development Plan ("FDP"). We are unable to provide definitive
guidance on when this will be received, but based upon our positive,
on-going dialogue with DECC, the Company is expecting to receive the
necessary response shortly. This will allow us to move forward with the
reconfigured development plan and to deliver Phase 1A on Bentley, which
includes an expected First Oil date in the first half of 2012.



Following the response from DECC regarding the FDP, the Company is also
optimistic that it will be able to convert the 87 MMbbls of Contingent
resources to 2P Reserves in due course. This would assign to the
Company approximately 115MMbbls of 2P Reserves, which we believe would
be an important milestone in demonstrating the value of the Bentley
field.



Work has started on the enhanced oil recovery programme, where we are
identifying the technologies and business methods that can deliver
significant additional barrels from Bentley through tertiary production
techniques. Our early work is encouraging.



We have a highly valuable asset being managed by an experienced and
knowledgeable team, supported by, in our view, excellent technical and
financial advisers. Bentley remains a complex project, which we are
striving to bring to fruition as efficiently as possible in challenging
economic circumstances. We have confidence in the outcome and ask for
the patience and support of shareholders while we progress the various
initiatives.



We reiterate the commitment of the Board of Directors and management
team to its shareholders. For over eight years, the Xcite Energy team
has been and continues to work hard on the Bentley project and we are
now at a decisive stage for the Company, with drilling planning for
Phase 1A proceeding on schedule.



We look forward to providing you with regular updates as we enter a
period of increasing newsflow.









ENQUIRIES:

Xcite Energy Limited

                                               +44 (0) 1483 549 063

Richard Smith                Chief Executive
                             Officer

Rupert Cole                  Chief Financial
                             Officer


Oriel Securities (Joint Broker and Nomad)       +44 (0) 207 710 7600

Emma Griffin                 Partner

Simon Edwards                Partner


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


Pelham Bell Pottinger                           +44 (0) 207 861 3232

Mark Antelme                 Director

Henry Lerwill                Account Director


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.



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, 2011 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

END

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