8 November 2010

Xcite Energy Limited

("Xcite Energy" or the "Company")

9/3b-6z Well Update

The Company is pleased to announce that the 9/3b-6 well on the Bentley field is progressing on plan, on schedule and has reached target depth for the second part of the planned work programme, the horizontal section of the well, 9/3b-6z.

The horizontal section has reached the planned total depth at 7085 ft measured depth in the well section and has successfully tracked the top of the reservoir. This provides over 1800 ft of gross reservoir section since reservoir entry point of 5261 ft measured depth.

The reservoir in the 9/3b-6z well bore section was encountered at an estimated 3618 ft true vertical depth subsea, some 18ft higher than the pre-well prognosis of 3636 ft true vertical depth and thus giving more oil column. Petrophysical analysis is being undertaken and is expected to confirm close to 100% net to gross oil pay.

The completion and testing of this horizontal section is expected by the end of November.

The Bentley oil field is located on Block 9/3b (Licence 1078), approximately 160km east of the Shetland Isles, in which Xcite Energy holds 100% working interest.

Stephen Kew has reviewed and approved the technical information contained within this press release in his capacity as a qualified person, as required under the AIM Rules. Stephen Kew is Head of Exploration and Development at Xcite Energy and is an associate of the Institution of Chemical Engineers and a member of the Society of Petroleum Engineers.

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.

ADVISORY REGARDING FORWARD LOOKING STATEMENTS

Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Such information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "schedule", "continue", "estimate", "expect", "may", "will", "project", "predict", "upside", "potential", "targeting", "intend", "could", "might", "should", "believe", "if successful" and similar expressions.

Implicit in this information are assumptions regarding measurements from instrumentation, which are subject to the inherent minor inaccuracies of offshore oilfield measurement processes. These assumptions, although considered reasonable by the Company at the time of preparation of this press release, may prove to be incorrect. Readers are cautioned that actual future operating results and economic performance of the Company are subject to a number of risks and uncertainties, including general economic, market and business conditions and could differ materially from what is currently expected. Although this press release discloses information regarding the oil pay, oil column and reservoir encountered in the horizontal section of the Company's 9/3b-6z well, readers are cautioned that reserves have not been attributed to, and there is no certainty that it will be commercially or technically viable to produce hydrocarbons from, such well.

For more exhaustive information on these risks and uncertainties you should refer to the Company's most recently filed annual information form which is available at www.sedar.com. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, it is under no obligation and does not undertake to update this information at any particular time except as may be required by applicable securities laws.