Collaboration Agreement with Statoil and Shell

Xcite Energy announces that its 100% owned subsidiary, Xcite Energy Resources Ltd ("XER"), has entered into a Collaboration Agreement with Statoil (U.K.) Ltd and Shell U.K. Ltd, which allows all the Parties to make available and share field-specific technical and operational information for the evaluation of potential synergies and collaboration between the Bentley and Bressay Fields.

A joint XER, Statoil and Shell team will work together to analyse the current available information and develop a number of proposals for assessment, including the potential utilisation of common infrastructure, assets and operational solutions during the phased development of the Bentley Field and the future development of the Bressay Field.

XER believes that collaboration in a number of key areas, along with a coordinated approach to an area development, will realise a number of mutual opportunities which have the potential to benefit all stakeholders.

Rupert Cole, CEO of Xcite Energy, commented:
"We are pleased to continue to work with Statoil and Shell in this important initiative and, following their purchase of the Bentley EWT data in 2013, believe that it demonstrates the value that independent oil companies can bring to the North Sea to unlock major energy assets. We also believe that the principles contained in this Collaboration Agreement complement the recent UK Government commissioned report, "UKCS Maximising Recovery Review" by Sir Ian Wood, and will provide an important early framework through which additional value can be captured in area development scenarios."