Operational update for Bentley 9/3b-7 well

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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 17½" section has been drilled, 13⅜"casing set, cemented and pressure tested. The 12¼" hole has been drilled. After the 10¾" x 9⅝" 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.

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