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Xcite Energy Ltd: Xcite Energy Limited ("Xcite Energy" or the "Company") Drilling of Geotechnical Test Well

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^{Published in Business and Finance on Monday, July 6th 2009 at 7:13 GMT, Last Modified on 2009-07-06 07:13:58 by Market Wire}  

ABERDEENSHIRE, UK--(Marketwire - July 6, 2009) - THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES

Xcite Energy (TSX-V: [ XEL ]) (LSE: XEL) (AIM: XEL), a developer of heavy oil assets in the UK North Sea, is pleased to report, effective July 4, 2009, that:

1. The Company's wholly owned subsidiary, Xcite Energy Resources Limited ("XER"), has entered into an agreement with Fugro Well Services Ltd ("Fugro") for the drilling of a geotechnical test well as part of the preparation for the 9/3b-R pre-development well on the Bentley field, together with a seabed survey, both planned for later in 2009.

2. XER has also entered into a Memorandum of Understanding ("MOU") with Fugro providing XER with an option to drill and test the planned 9/3b-R pre-development well on the Bentley field for a duration of up to 45 days, with a target date of between July and September 2010.

This work programme is subject to Fugro obtaining the necessary approvals for the Synergy drilling vessel, in respect of which the Company and XER will provide their full support.

Richard Smith, Xcite Energy Chief Executive Officer, commented:

"We are very pleased to have been able to conclude discussions with Fugro to provide the Synergy drilling vessel for a geotechnical well that will take the place of a borehole, together with an option for a drilling slot for the 9/3b-R pre-development well planned for 2010. The use of this vessel is likely to materially reduce the costs of the 9/3b-R well, which will assist Xcite Energy to continue to progress the work program on the Bentley field, one of the largest undeveloped fields in the UK sector of the North Sea."

Neither 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.

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 June 30, 2008 and in the annual Management's Discussion and Analysis for Xcite Energy dated March 26, 2009 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.