Mr. Rupert Cole reports

XCITE ENERGY LIMITED ANNOUNCES MEMORANDUM OF UNDERSTANDING WITH BAKER HUGHES

Xcite Energy Ltd.'s 100-per-cent subsidiary, Xcite Energy Resources PLC, has entered into a memorandum of understanding with Baker Hughes Ltd., which sets out the principles for the provision of oil field services for the Bentley field, and which will likely include the supply of drilling and completion services, well engineering, electronic submersible pumps and reservoir engineering.

Baker Hughes will work with all the key stakeholders in a collaborative manner to develop innovative, field-specific technical and commercial oil field services for Bentley, which maximize the economic recovery from the field and the economic return for all stakeholders.

Rupert Cole, chief executive officer of Xcite Energy, commented: "We are very pleased that Baker Hughes has joined the Bentley development group and we believe this is a further validation of the viability of this project and demonstrates the continuing progress we are making towards our field development plan. The provision of these key oil field services is an important part of the successful delivery of any project and we believe Baker Hughes has the necessary skills, expertise and track record to support our development group.

"We continue to make good progress with the planned assurance engineering program and development partner commercial negotiations and remain focused on delivering a robust and compliant field development plan for this valuable asset."

We seek Safe Harbor.