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Xcite Energy Limited Announces Full Year Results

^{Published on 2011-03-25 00:20:38 - Market Wire}
 

ABERDEENSHIRE, UNITED KINGDOM--(Marketwire - March 25, 2011) -

 THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES TSX-V, LSE-AIM: XEL 25 March 2011 Xcite Energy Limited ("Xcite Energy" or the "Company") Results for the Year Ended December 31, 2010 Xcite Energy is pleased to announce its results for the year ended December 31, 2010. The year has been transformational for the Company, the key highlights of which are: Highlights - Successful completion and flow testing of the 9/3b-6z 1,800ft horizontal well on the Bentley field, with a stabilised flow rate of 2,900 barrels of oil equivalent per day, significantly exceeding the pre-drill upside reservoir model expectations; - Successful 9/3b-6 pilot well showing the eastern flank reservoir height to be greater than prognosis, together with 100% net to gross reservoir pay; - 9/3b-6 and 9/3b-6z wells have provided all the information required to move forward with the reserves assessment currently being undertaken; - Recent Budget changes in North Sea tax will not affect the Company's plans to move forward with its First Stage Development. The increased benefit of the heavy oil tax allowances will have a material offsetting effect on the increased supplemental corporation tax charge; - Successful equity capital financings, raising more than GBP50 million net of expenses to drill the wells on the Bentley field and for working capital purposes; - Increase in the Standby Equity Distribution Agreement facility to GBP100 million, of which GBP32.75 million has been drawn down; - Contract signed for the Rowan Norway deep water, harsh environment jack-up drilling and production rig to commence the First Stage Production programme on the Bentley field scheduled for late 2011; - Significant uplift in the market capitalisation of the Company. Richard Smith, Chief Executive of Xcite Energy, commented:"These results speak for themselves. This has been an outstanding year for the Xcite team, the investors who have supported us and for the Company's development and prospects. We look forward to 2011, as we move ahead with plans to bring the Bentley field into production." The Company's full Financial Results for the Year Ended December 31, 2010 can be found at the following link: [ http://www.rns-pdf.londonstockexchange.com/rns/6099D_-2011-3-24.pdf ] The Company has filed the following reports required under National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities: Form 51-101F1 Statement of Reserves Data and Other Oil and Gas Information; and Form 51-101F3 Report of Management and Directors on Oil and Gas Disclosure. In addition to these forms, the Company has also filed copies of its audited financial statements and management discussion and analysis in respect thereof for the year ended December 31, 2010. These documents can be found for viewing by electronic means on the System for Electronic Document and Analysis Retrieval at [ www.sedar.com ] ENQUIRIES: Xcite Energy Limited +44 (0) 1483 549 063 Richard Smith Chief Executive Officer Rupert Cole Chief Financial Officer Arbuthnot Securities +44 (0) 20 7012 2000 Limited (Nomad and Broker) Antonio Bossi Director Pelham Bell Pottinger +44 (0) 20 7861 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. 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, 2010 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