Xcite Energy Limited ("Xcite Energy" or the "Company") Results for the 3 Month Period Ended September 30, 2008 and Outlook for 2009

ABERDEENSHIRE, UK--(Marketwire - December 3, 2008) -

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES

Xcite Energy (TSX-V: XEL) (LSE: XEL) (AIM: XEL) is a heavy oil company focused on the development of discovered resources in the United Kingdom North Sea. The Company holds a 100% working interest in Block 9/3b, the Bentley field, one of the largest undeveloped heavy oil fields in the United Kingdom North Sea.

The Company is listed on the AIM Market of the London Stock Exchange (AIM) and the TSX Venture Exchange (TSX-V).

The Company today announces its financial and operational results for the 3 month period ended September 30, 2008 and its outlook for 2009.

KEY HIGHLIGHTS

Operational

--  Realisation of the commercial potential of the Bentley field continues
    to be progressed through essential study work and commercial discussions.
    
--  Important new understanding of the Bentley crude's in-situ cold flow
    behaviour has been achieved through the correlation of the successful drill
    stem test on well 9/3b-5 with historic data.
    
--  Improved understanding of applicable well and process technologies
    resulting from the successful 9/3b-5 drill stem test underpins management
    confidence in economic productivity and recoverability, even at low oil
    prices.
    
--  Re-processing of the 3D seismic data confirms that Bentley is a major
    North Sea asset. Interpretation of this dataset is underway, with initial
    findings supporting a material increase in oil in place, leading to
    improved commercial productivity characteristics compared to the initial 3D
    interpretation and the original 2D seismic data.
    
--  The neighbouring Bressay Field (6km) has been shown to be a close
    reservoir analogue field for Bentley, with similar crude oil and geological
    properties. StatoilHydro, as Operator of Bressay, has recently completed a
    well and already shared its initial thinking for the development of the
    field with a target first oil date in 2014.
    

Financial

--  Cash balance as at September 30, 2008 was £2.7 million in line with
    budget.
    
--  Challenging market conditions are likely to impact on the Bentley work
    programme timetable.
    

Below is a link to Management's Discussion and Analysis and Interim Consolidated Financial Statements:

http://www.rns-pdf.londonstockexchange.com/rns/4794J_-2008-12-3.pdf

Contact Information: ENQUIRIES: Xcite Energy +44 (0) 1330 826 740 Richard Smith Chief Executive Officer Rupert Cole Chief Financial Officer Thomas Weisel Partners (UK) Limited +44 (0) 20 7877 4300 Paul Colucci Managing Director Paul Newman Managing Director Strand Partners Ltd. +44 (0) 20 7409 3494 James Harris Director Warren Pearce Associate Director Pelham Public Relations +44 (0) 20 7743 6676 Alisdair Haythornthwaite Director Katherine Stewart Account Manager