Xcite Energy Limited ("Xcite Energy" or the "Company") Drilling of Geotechnical Test Well on Block 9/3b and Memorandum

ABERDEENSHIRE, UK, Jul 06 (MARKET WIRE) --
THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR
INTO THE UNITED STATES

Xcite Energy (TSX-V: XEL) (LSE: XEL) (AIM: XEL), a developer of heavy oil
assets in the UK North Sea, is pleased to report, effective July 4, 2009,
that:

1. The Company's wholly owned subsidiary, Xcite Energy Resources Limited
("XER"), has entered into an agreement with Fugro Well Services Ltd
("Fugro") for the drilling of a geotechnical test well as part of the
preparation for the 9/3b-R pre-development well on the Bentley field,
together with a seabed survey, both planned for later in 2009.

2. XER has also entered into a Memorandum of Understanding ("MOU") with
Fugro providing XER with an option to drill and test the planned 9/3b-R
pre-development well on the Bentley field for a duration of up to 45 days,
with a target date of between July and September 2010.

This work programme is subject to Fugro obtaining the necessary approvals
for the Synergy drilling vessel, in respect of which the Company and XER
will provide their full support.

Richard Smith, Xcite Energy Chief Executive Officer, commented:

"We are very pleased to have been able to conclude discussions with Fugro
to provide the Synergy drilling vessel for a geotechnical well that will
take the place of a borehole, together with an option for a drilling slot
for the 9/3b-R pre-development well planned for 2010. The use of this
vessel is likely to materially reduce the costs of the 9/3b-R well, which
will assist Xcite Energy to continue to progress the work program on the
Bentley field, one of the largest undeveloped fields in the UK sector of
the North Sea."

Neither 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.

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 risks associated with the
oil and gas industry (including operational risks in exploration and
development and uncertainties of estimates oil and gas potential
properties), the risk of commodity price and foreign exchange rate
fluctuations and the ability of Xcite Energy to secure financing.
Additional information identifying risks and uncertainties are contained
in the Company's annual information form dated June 30, 2008 and in the
annual Management's Discussion and Analysis for Xcite Energy dated March
26, 2009 filed with the Canadian securities regulatory authorities and
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.

ENQUIRIES:

Xcite Energy Limited
+44 (0) 1330 826 740
Richard Smith
Chief Executive Officer
Rupert Cole
Chief Financial Officer

Thomas Weisel Partners International Limited
+44 (0) 20 7877 4300
Paul Colucci
Managing Director
Jesse Meidl
Vice President

Strand Partners Limited
+44 (0) 20 7409 3494
James Harris
Director
Rory Murphy
Director

Pelham Public Relations
+44 (0) 20 7337 1500
Mark Antelme
Director

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