Xcite Inks LOI for Deepwater Jackup in UK North Sea

Xcite Energy has exchanged a letter of intent with Applied Drilling Technology International ("ADTI"), the well management arm of Transocean Drilling U.K. Limited, for the provision of a heavy duty, deepwater jackup drilling unit to undertake the drilling and testing of the 9/3b-R well on the Company's Bentley field.

Further details are expected to be announced after the contract is completed, which is subject to various approvals, including Xcite Energy board approval, available funding and regulatory approvals.

ADTI has also joined the Bentley Alliance, the management and operational structure created by Xcite Energy as the vehicle to direct the Bentley field to full field development. The addition of the ADTI technical expertise and project management skills is expected to greatly assist Xcite Energy in moving the Bentley field towards production.