ABERDEENSHIRE, UNITED KINGDOM--(Marketwired - April 07, 2013) -

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                       LSE-AIM, TSX-V: XEL

8 April 2013



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

               Reserves Assessment on the Bentley Field

                                and

Statement of Reserves Data and other Oil and Gas Information (Form
51-101F1)

Following the successful completion of the pre-production well test in
September 2012 and a new 3D seismic survey, Xcite Energy is pleased to
announce the results from its updated reserves assessment report as
prepared by TRACS.

Highlights
- Mean PIIP for the Bentley field of 909 MMstb, increased from 550
MMstb as previously reported in February 2012.

- 1P, 2P and 3P oil reserves for the Bentley field of 198 MMstb, 250
MMstb and 312 MMstb, respectively, based on an initial 35 year
production period.

- Projected P50 peak production rate of approximately 45,000 stb/d
in the first phase development, increasing to approximately 57,000
stb/d in the second phase development.

- NPV10 (after tax) value of oil reserves for the Bentley field of
approximately $1.5 billion, $2.2 billion and $2.8 billion on a 1P, 2P
and 3P basis, respectively.

- An additional 46 MMstb of P50 Contingent Resources assigned to the
Bentley field for recoverable volumes beyond the initial 35 years
production period.

- Aggregate, unrisked mean Prospective Resources assigned of
approximately 96 MMstb, relating to prospects adjacent to the Bentley
field and prospects as awarded in the recent UK Offshore 27th Licence
Round.

See "Cautionary Language" below for a general explanation of the method
and assumptions used in the above calculations.

Rupert Cole, Chief Executive Officer of Xcite Energy commented:
"I am very pleased to report this significant increase in both reserves
and value attributable to our assets, which supports our long-held
belief in the potential of the Bentley field. This 2P reserves update,
at 250 million barrels, plus considerable upside potential, has
exceeded our expectations.

We have now moved Bentley from being a significant asset to one of the
major strategic assets in the North Sea, which will be an important
source of future employment and economic contribution to the UK for
many years to come.

We shall now continue to move the project forward with on-going studies
into the potential for enhanced oil recovery, which has yet to be
factored into the reserves assessment. There is also further scope for
field optimisation in order to accelerate delivery of the Contingent
Resources, as well as the potential for exploration barrels from our
Prospective Resources.

Our next goal is to fund the future development of our assets. Having
put in place the RBL facility last year, we still see this as an
important part of our future funding structure. By increasing our
reserves so significantly and developing a more balanced phasing of
production volumes, with approximately half of the 2P reserves now
expected to be delivered from the first phase development wells, we
anticipate being in a position to increase the borrowing capacity of
the field considerably and we shall be discussing this with our
existing and potential new lenders.

Based on this reserves update, it is also the right time to evaluate
suitable farm-in partners for Bentley. We have demonstrated the value
of the field, materially de-risked it ahead of development and we would
expect potential partners to recognise these achievements.

Finally, an updated Field Development Plan will be submitted to DECC in
the coming months, which will reflect the results of the successful
well test last year and the greater capacity of the first phase of
development.

I would like to take this opportunity, once again, to thank the entire
Xcite Energy team for their unwavering belief in, and commitment to,
this project, and for the application of their expertise to move the
Bentley forward to become a strategic, development-ready asset. They
should be rightfully proud of this immense achievement."