ABERDEENSHIRE, UNITED KINGDOM--(Marketwire - May 29, 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 29 May 2012 Xcite Energy Limited ("Xcite Energy") Bentley Phase 1A Operational Update Xcite Energy is pleased to announce that the 9/3b-7 well has reached target depth of 9,377 feet (measured depth). A reservoir section in excess of 2,200 feet has been penetrated, with 100% net pay, and sand screens have been run successfully. The remainder of the planned operations, including drilling of the second reservoir section, installation of the down-hole pump and commissioning of the processing equipment will now be undertaken prior to the production test commencing. The two 6" export pipelines from the Rowan Norway have been successfully installed and the installation vessel, Polar Prince, has been released. 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 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) 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 26 October 2010 and in the annual Management's Discussion and Analysis for Xcite Energy for the period ended 31 March 2012 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