ABERDEENSHIRE, UK--(Marketwire - Sep 13, 2011) -

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


TSX-V, LSE-AIM: XEL



13 September 2011


Xcite Energy Limited
("Xcite Energy" or the "Company")


Drawdown on Equity Line and Director's Share Purchase


Xcite Energy announces that it has drawn down on its Standby Equity
Distribution Agreement ("SEDA") with YA Global Master SPV Ltd
("Yorkville") as announced on 28 September 2010 in the amount of GBP6.9
million (CAD$10.9 million). This draw down has been undertaken at a
price of GBP1.2816 (CAD$2.03) per share and will result in the issue of
5,383,894 ordinary shares of no par value in the capital of the Company
(the "SEDA Ordinary Shares") to Yorkville. This funding will be used as
future working capital for the Company and to progress towards first
oil from the Bentley field.

Subject to the terms of the SEDA and except in accordance with Canadian
securities laws and with prior written approval of the TSX Venture
Exchange, the SEDA Ordinary Shares may not be sold or otherwise traded
on or through the facilities of the TSX Venture Exchange or otherwise
in Canada or to or for the benefit of a Canadian resident until the
date that is four months and one day from the date of issue.

Application will be made for the admission to AIM ("Admission") of the
SEDA Ordinary Shares upon approval of the share issue by the TSX
Venture Exchange. The SEDA Ordinary Shares will rank pari passu with
the Company's existing issued ordinary shares (each, an "Ordinary
Share").

The Company has engaged Arbuthnot Securities Limited ("Arbuthnot") to
assist in the placing of the stock acquired by Yorkville pursuant to
the SEDA, for which it will be paid a fee of GBP51,099 (CAD$80,821).
Arbuthnot, as agent for the purchasers, has agreed to acquire 2,795,242
shares acquired by Yorkville pursuant to the SEDA, including stock to
be acquired by a director of the Company.

The Company has received communication that one of its directors,
Rupert E. Cole, intends to subscribe through Arbuthnot for 801,666
Ordinary Shares of the Company at a purchase price of GBP1.2816
(CAD$2.03) per share on the date of closing of the issuance of the SEDA
Ordinary Shares to Yorkville, following which Mr. Cole will hold an
aggregate of 7,000,000 Ordinary Shares.

Subject to approval by the TSX Venture Exchange, following the issue of
the 5,383,894 Ordinary Shares the total Ordinary Shares in the Company
in issue will be 183,656,292.


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) 20 7710 7600
Emma Griffin              Partner
Simon Edwards             Partner

Morgan Stanley (Joint Broker)                      +44 (0) 20 7425 8000
Andrew Foster             Managing Director

Pelham Bell Pottinger                              +44 (0) 20 7861 3232
Mark Antelme              Director               
Henry Lerwill                                       

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.

Oriel Securities which is authorised and regulated in the United
Kingdom by the Financial Services Authority, is acting exclusively for
Xcite Energy and for no one else in connection with the subject matter
of this announcement and will not be responsible to anyone other than
Xcite Energy for providing the protections afforded to its clients or
for providing advice in connection with the subject matter of this
announcement.

Morgan Stanley which is authorised and regulated in the United Kingdom
by the Financial Services Authority, is acting exclusively for Xcite
Energy and for no one else in connection with the subject matter of
this announcement and will not be responsible to anyone other than
Xcite Energy for providing the protections afforded to its clients or
for providing advice in connection with the subject matter of this
announcement.



                    This information is provided by RNS
          The company news service from the London Stock Exchange

END