Xcite Energy Limited ("Xcite Energy" or the "Company") R Well Spud and Contracting of Tanker

   This Announcement Is Not for Release, Publication or Distribution in or Into the United States

Xcite Energy (TSX-V: XEL) (LSE: XEL) (AIM: XEL) is pleased to announce that the Ocean Nomad semi-submersible drilling rig has arrived on location of the 9/3b-R well on the Bentley field and the circa 65 day well programme has commenced.

In addition, the Company has contracted with Knutsen OAS (UK) Limited to provide an offtake tanker to store well products from the intended well test.

Notes to editors:

Xcite Energy is listed on AIM in London and the TSX Venture Exchange. The Company is focused on the appraisal and development of the Bentley Field in Block 9/3b in the UK North Sea. Xcite holds 100% working interest in the field, which is the largest undeveloped heavy oil field in the region. Management's base recovery estimate for Bentley is 160mmbbls.

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.

ENQUIRIES: Xcite Energy Limited [phone] Richard Smith Chief Executive Officer Rupert Cole Chief Financial Officer Arbuthnot Securities Limited [phone] (Nomad and Broker) Antonio Bossi Director Pelham Bell Pottinger [phone] Mark Antelme Director Henry Lerwill Paradox Public Relations [phone] Jean-Francois Meilleur Consultant