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Xcite Energy Ltd: Xcite Energy Limited ("Xcite Energy" or the "Company") Announcement of Financial Results

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^{Published in Business and Finance on Friday, March 27th 2009 at 8:05 GMT, Last Modified on 2009-03-27 08:06:57 by Market Wire}  

ABERDEENSHIRE, UK--(Marketwire - March 27, 2009) - 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, which contains the Bentley field in its entirety, one of the largest proven, but undeveloped heavy oil fields in the United Kingdom North Sea.

Xcite Energy 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 results for the year ended December 31, 2008 and its outlook for the remainder of 2009.

KEY HIGHLIGHTS

 -- Successful drilling and flow testing of the 9/3b-5 appraisal well on the Bentley field, to bring first oil to surface more than 30 years after field discovery. -- Completion of the new Competent Person's Report from RPS Energy on the Bentley field, that has confirmed a higher resources categorisation, increased recoverable volumes of oil, significantly increased economic value and a greatly improved probability of commercial success. -- Planning and definition of the next Bentley reservoir intervention under way, the Early Production System that, if successful, will categorise the field as "Reserves". 

2009 OUTLOOK

 -- The Company intends to complete its production operatorship qualification with the Department of the Energy and Climate Change, to enable the Early Production System to be undertaken as soon as practicable. -- Planning for the next phase in the development of the Bentley field will continue in the context of the current economic and market conditions. 

Richard Smith, Xcite Energy Chief Executive Officer commented:

"The progress we have made during 2008 and the early part of 2009 has been outstanding, which has been underpinned and enabled by the work that the Xcite Energy team has completed for the new Competent Person's Report. Taking a 30 year old oil field and clearly demonstrating its commercial potential and value by significant advances in technological understanding under rigorous third party independent review, has been a landmark for Xcite Energy. Bentley remains one of the largest proven, but undeveloped fields in the North Sea and our challenge now is to move forward with the work programme as soon as the currently unfavourable market conditions allow."

The Company's full Financial Results for the Year Ended December 31, 2008 can be found at the following link [[ http://www.rns-pdf.londonstockexchange.com/rns/6050P_-2009-3-27.pdf ]].

The Company has filed the following reports required under National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities: Form 51-101F1 Statement of Reserves Data and Other Oil and Gas Information; and Form 51-101F3 Report of Management and Directors on Oil and Gas Disclosure. In addition to these forms, the Company has also filed copies of its audited financial statements and management discussion and analysis in respect thereof for the year ended December 31, 2008. These documents can be found for viewing by electronic means on the System for Electronic Document and Analysis Retrieval at [ www.sedar.com ]

The TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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 changes in market and competition, governmental or regulatory developments and general economic conditions. Additional information identifying risks and uncertainties are contained in the Company's annual information form dated June 30, 2008 filed with the Canadian securities regulatory authorities, 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.

This information is provided by RNS

The company news service from the London Stock Exchange