ABERDEENSHIRE, UNITED KINGDOM--(Marketwire - May 8, 2012) -

 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART DIRECTLY OR INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION TSX-V, LSE-AIM: XEL 8 May 2012 Xcite Energy Limited ("Xcite Energy" or the "Company") Operational update for Bentley 9/3b-7 well Xcite Energy announces that drilling of the 9/3b-7 well on the Bentley field is progressing satisfactorily, having reached a total depth of 6684ft. The 17 1/2" section has been drilled, 13?"casing set, cemented and pressure tested. The 121/4" hole has been drilled. After the 10 3/4" x 9 5/8" liner has been set, cemented and pressure tested, drilling to the reservoir section will follow. Following the announcement on 14 December 2011, the Company's 100% subsidiary, Xcite Energy Resources Limited ("XER"), has now signed a time charter contract with Teekay Navion Offshore Loading Pte. Ltd. ("Teekay"), for the provision of the dynamically positioned "Scott Spirit" shuttle tanker vessel. The Scott Spirit is planned to be used as the in-field storage and offtake facility for Bentley crude oil during the Phase 1A of the Bentley field development programme now being undertaken. XER has also now concluded a contract with Ocean Installer AS for the installation of the oil export pipeline of 1.8 km between the Rowan Norway jack-up rig and the Scott Spirit.The load out on the installation vessel "Polar Prince" is currently taking place in Peterhead in preparation for the work programme. ENQUIRIES: Xcite Energy Limited +44 (0) 1483 549 063 Richard Smith Chief Executive Officer Rupert Cole Chief Financial Officer Oriel Securities (Joint +44 (0) 207 710 7600 Broker and Nomad) Emma Griffin Partner Michael Shaw 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 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) acceptsresponsibility for the adequacy or accuracy of this release. This information is provided by RNS The company news service from the London Stock Exchange END