Results for the Year Ended 31 December 2012

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TSX-V, LSE-AIM: XEL

26 March 2013

Xcite Energy Limited

("Xcite Energy" or the "Company")

Results for the Year Ended 31 December 2012

Xcite Energy announces its results for the year ended 31 December 2012.

Highlights

v Safe and successful completion of pre-production extended well test on the Bentley field, producing over 149,000 barrels of Bentley crude which was sold to a major refiner in Europe, to record the first revenue for the Group.

v Pre-production extended well test exceeded management expectations, successfully demonstrating drilling, completion, production and export techniques, enabling the development of a cost effective full field development solution, which maximises the recovery of crude oil and associated economics.

v Bentley field now substantially de-risked and development-ready. Development can be approached with a higher degree of certainty in terms of reservoir performance, technical execution and financial outturn.

v Signing of a US$155 million Reserves Based Lending facility with a leading group of lending institutions, which will form a substantial part of the funding requirement for Phase 1B development of the Bentley field.

v Strengthened balance sheet, with new net equity capital financing of £63.4 million and new debt financing of US$60 million during 2012. Cash balance at year end of £25.6 million.

v Strengthened management team and increased staffing levels, to support future project activity levels moving into the development and production phase of the Bentley field.

v Success in the 27th Licence Round provides new acreage to the Xcite Energy Resources Limited portfolio. Blocks 9/4a, 9/8b and 9/9h add four identified prospects to the future exploration and appraisal programmes in the wider Bentley area.

Commenting on today's announcement Rupert Cole, Chief Executive Officer, said:

"2012 has been an excellent year for Xcite, with the successful, and, most importantly, safe, conclusion of a US$250 million project in the North Sea, on time and on budget, which is a testament to the skill and experience of our team. This is an immense achievement by any standards.

The entire team has worked tirelessly during the well test and in the time since its conclusion in September last year, to re-engineer the reservoir model in order to deliver an updated field development plan based on the excellent data and results from the test.

The success of last year's project has provided us not only the information but also the confidence needed to be able to deliver our plans to commence the first phase development on Bentley, which will be largely based on scaling up the 2012 pre-production work programme.

While these 2012 results cover the past, as I look to the future, I am enormously excited about what we can achieve in 2013 as we remain on track for delivery of the new CPR in the early part of this year. My thanks, once again, goes to the entire team for their dedication and expertise."

The following tables summarise the Group's performance in the year ended 31 December 2012 and the comparatives for the years ended 31 December 2011 and 31 December 2010.

The Company's full Financial Results for the Year Ended 31 December 2012 can be found at the following link:  

http://www.rns-pdf.londonstockexchange.com/rns/8372A_-2013-3-25.pdf

The Company has filed copies of its audited financial statements and management discussion and analysis in respect thereof for the year ended 31 December 2012. These documents can be found for viewing by electronic means on the System for Electronic Document and Analysis Retrieval at www.sedar.com

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. 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.