ABERDEENSHIRE, UNITED KINGDOM--(Marketwire - Jul 25, 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 25 July 2012 Xcite Energy Limited ("Xcite Energy" or the "Company") Results for the 3 and 6 Month Periods Ended 30 June 2012 Xcite Energy announces its results for the 3 and 6 month periods ended 30 June 2012. Highlights - Net loss in the current period of GBP0.2 million comparable with previous quarters. Further increase in net asset value due to the current well drilling operations as the Bentley field development programme continues. Increased investment in operational team headcount reflecting increased activity levels. - Cash of GBP81.8 million as at 30 June 2012, following net new equity capital and debt financing of GBP40.3 million in the three month period. Included in cash balances are amounts held in escrow of GBP59.1 million relating to the Bentley Phase 1A work programme. - Signing of a US$155 million reserves-based lending facility with a leading group of five lending institutions to provide a substantial part of the Phase 1B work programme funding requirement. - Issue of US$50 million of unsecured 14% loan notes to a Canada-based investment management firm, with a term of 360 days. - Successful drilling of a mother bore and two lateral wells on Bentley, with the upper lateral providing over 2,200 feet of reservoir section positioned at the top of the reservoir, and the lower lateral with over 2,000 feet reservoir section positioned nearer to the oil water contact. - Since the period end, the Company announced that it had successfully installed smart completions equipment and down hole pumps in the wells, culminating with the successful commencement of the pre-production flow test on 9 July 2012 and the planned shut-in period and pressure build-up test on 11 July 2012. This planned shut-in period and pressure build-up test is designed to obtain key information about the Bentley reservoir and the mobility of its fluids. - On 19 July 2012, the Company announced that, following the successful pressure build-up test, the flow test has continued as planned and a stabilised flow rate of 2,900 barrels of oil per day has been comfortably achieved, which was well within the operational performance of the reservoir. The following tables summarise the Group's financial performance in the 3 and 6 months ended 30 June 2012 and the comparatives for the 3 and 6 months ended 30 June 2011. The Group had no trading revenue in any of these periods. 6 months 3 months 6 months 3 months ended ended ended ended 30 June 30 June 30 June 30 June Income Statement Information 2012 2012 2011 2011 GBPm GBPm GBPm GBPm Net profit/(loss) (0.3) (0.2) (0.3) (0.3) Earnings/(loss) per share (0.1p) (0.1p) (0.2p) (0.2p) (basic) in pence Earnings/(loss) per share (0.1p) (0.1p) (0.2p) (0.2p) (diluted) in pence 6 months 3 months 6 months 3 months ended ended ended ended 30 June 30 June 30 June 30 June Cash Flow Information 2012 2012 2011 2011 GBPm GBPm GBPm GBPm Net cash flow from 4.6 1.3 (17.5) 0.4 operations Net cash flow from (65.2) (40.3) (7.3) (4.6) investing activities Net cash flow from 78.2 41.8 33.2 18.3 financing activities As at As at As at 30 June 31 December 30 June Balance Sheet Information 2012 2011 2011 GBPm GBPm GBPm Total assets 237.6 152.8 118.1 Cash and cash equivalents 81.8 64.1 44.3 Current liabilities 45.8 9.5 5.9 Long term liabilities (deferred tax) 0.5 0.5 0.5 Total net assets 191.2 142.7 111.6 The Company's unaudited Financial Results for the 3 and 6 Months Ended 30 June 2012 can be found at the following link: [ http://www.rns-pdf.londonstockexchange.com/rns/4246I_1-2012-7-24.pdf ] ENQUIRIES: Xcite Energy Limited +44 (0) 1483 549 063 Richard Smith (CEO) / Rupert Cole (CFO) Oriel Securities (Joint Broker and Nomad) +44 (0) 207 710 7600 Emma Griffin / Michael Shaw Morgan Stanley (Joint Broker) +44 (0) 207 425 8000 Andrew Foster Pelham Bell Pottinger +44 (0) 207 861 3232 Mark Antelme / Henry Lerwill Paradox Public Relations +1 514 341 0408 Jean-Francois Meilleur 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 dated 22 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. 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. This information is provided by RNS The company news service from the London Stock Exchange END