SOURCE: Xcite Energy Ltd

 

ABERDEENSHIRE, UK--(Marketwire - January 8, 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, the Bentley field, one of the largest undeveloped heavy oil fields in the United Kingdom North Sea.

The Company is listed on the AIM Market of the London Stock Exchange (AIM) and the TSX Venture Exchange (TSX-V).

The Company today announces that, in recognition of their contribution to the progress made during 2008 with respect to the Bentley field, the following options to purchase ordinary shares of the Company at an exercise price of CAN$0.07 per ordinary share have been awarded to the following individuals in the Xcite Energy Resources Limited (the Company's wholly owned subsidiary) Management Team:

-- Mr Richard West, options to purchase 200,000 ordinary shares of the Company.

-- Mr Barnaby Brennan, options to purchase 200,000 ordinary shares of the Company.

-- Mr Charles Lucas-Clements, options to purchase 200,000 ordinary shares of the Company.

-- Mr Philip Gardner, options to purchase 200,000 ordinary shares of the Company.

-- Mr Jon Dale, options to purchase 50,000 ordinary shares of the Company.

All of these options are being granted under the terms of the Company's share option scheme and are exercisable for a period of five years from the date hereof.

Richard Smith, Chief Executive of Xcite Energy, commented:

"We are pleased to be able to award additional share options to the key members of the Xcite Energy Resources Management Team, all of whom have made a major contribution to the significant progress that has been made during 2008 with respect to the Bentley field."

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' prospectus 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.