EESC Presentation

APR 2015

April 2015

Legal Disclaimer

2

The information contained in this presentation (“Presentation”) has been prepared by Xcite Energy Limited

(“Xcite Energy” or “Company”) and is being delivered for informational purposes only. The information

contained in this Presentation is provided as at the date hereof and is subject to change without notices and

does not purport to contain all information about the Company.

Certain statements contained in this Presentation constitute forward-looking information within the meaning

of securities laws, including statements relating to the estimated reserves, resources and exploration activities

associated with the oil and gas properties in which the Company holds an interest. All information other than

information of historical fact is forward-looking information. 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”, “project”, “target”, “potential”, “continue” or other similar expressions concerning matters that are

not historical facts, and are intended to identify forward-looking information. No assurance can be given that

this information will prove to be correct and such forward looking information included in this presentation

should not be unduly relied on. 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 it, 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 risks associated with the oil and gas industry (including operational risks in development, exploration

and production, delays or changes in plans with respect to exploration or development projects or capital

expenditures, the uncertainty of reserves and resources estimates and projections in relation to production,

costs and expenses, health, safety and environmental risks and offshore exploration risk), the risk of

commodity price and foreign exchange rate fluctuations and the ability of the Company to secure financing.

Additional information identifying risks and uncertainties are contained in the Company’s annual information

form dated 26 October, 2010 and in the Management's Discussion and Analysis for Xcite Energy dated 26

March 2014, filed with the Canadian securities regulatory authorities and 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.

Statements relating to “reserves” or “resources” are deemed to be forward-looking statements or information,

as they involve the implied assessment, based on certain estimates and assumptions, that the resources and

reserves described can be profitable in the future. There are numerous uncertainties inherent in estimating

quantities of proved reserves, including many factors beyond the control of the Company. The reserve and

resources data included herein represents estimates only. In general, estimates of economically recoverable

oil reserves and the future net cash flows therefrom are based upon a number of variable factors and

assumptions, such as historical production from the properties, the assumed effects of regulation by

governmental agencies and future operating costs, all of which may vary considerably from actual results. All

such estimates are to some degree speculative and classifications of reserves are only attempts to define the

degree of speculation involved. For those reasons, estimates of the economically recoverable oil reserves

attributable to any particular group of properties and classification of such reserves based on risk of recovery

and estimates of future net revenues expected therefrom, prepared by different engineers or by the same

engineers at different times, may vary substantially. The actual production, revenues, taxes and development

and operating expenditures of the Company with respect to these reserves will vary from such estimates, and

such variances could be material.

The reserves, resources and future net revenue from the Company’s properties have been independently

audited by TRACS International Consultancy Ltd (“TRACS”) in its Reserves Assessment Report (“RAR”) of the

Company’s properties dated 25 February 2014 and effective 31 December 2013. Reference is made to the

Company’s Statement of Reserves Data and Other Oil and Gas Information (Form 51-101F1) report dated 25

February 2014 for more information about the reserves and resources information prepared by TRACS for the

Company.

Consistent with the securities disclosure legislation and policies of Canada, forecast prices and costs are used

in calculating reserve quantities included herein.

Actual future net cash flows also will be affected by other factors such as actual production levels, supply and

demand for oil and natural gas, curtailments or increases in consumption by oil and natural gas purchasers,

changes in governmental regulation or taxation and the impact of inflation on costs.

The estimated future net revenue contained herein does not necessarily represent the fair market value of the

Company’s reserves and resources. There is no assurance that the forecast price and cost assumptions

contained in the RAR will be attained and variances could be material. The recovery and reserves estimates on

the Company’s properties described herein are estimates only. The actual reserves on the Company’s

properties may be greater or less than those calculated.

All recipients of this Presentation are encouraged to obtain separate and independent verification of

information and opinions contained in this Presentation as part of their own due diligence.

This Presentation should not be considered as the giving of investment advice by the Company or any of its

shareholders, directors, officers, agents, employees or advisors. Each party to whom this Presentation is

delivered or made must make its own independent assessment of the Company after making such

investigations and taking such advice as may be deemed necessary. In particular, any estimates or projections

or opinions contained in this Presentation necessarily involve significant elements of subjective judgement,

analysis and assumption and each recipient should satisfy itself in relation to such matters. In no

circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with

any appraisal or investigation of the Company.

This Presentation does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation

of any offer to subscribe for or purchase any securities in the Company, nor shall it, or the fact of its delivery,

making or distribution, form the basis of, or be relied upon in connection with, or act as any inducement to

enter into any contract or commitment whatsoever with respect to such securities.

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such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of the

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to Section 21 of the Financial Services and Markets Act 2000 (“FSMA”) and accordingly, it is being

communicated in the United Kingdom only to persons to whom this Presentation may be communicated

without contravening the financial promotion prohibition in Section 21 of the FSMA. Those persons are

described in the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (“Order”) and

include persons who fall within the category of person set out in Articles 19(5) and 49(2) of the Order. In

addition, in the United Kingdom, this Presentation is only being communicated to and directed at persons who

are a “qualified investor” (within the meaning of Section 86(7) of the FSMA) acting as principal or in

circumstances to which Section 86(2) of the FSMA applies. Any investment activity to which this Presentation

relates in the United Kingdom is available to, and will only be engaged with such persons and this Presentation

should not be acted or relied upon in the United Kingdom by persons of any other description. No offer of

securities in the Company is being or will be made in the United Kingdom in circumstances which would

require a prospectus to be approved by the UK Financial Services Authority (“FSA”) under Section 87A of the

FSMA.

By accepting this Presentation, the recipient represents and warrants that it is a person to whom this

Presentation may be delivered or distributed without a violation of the laws of any relevant jurisdiction. This

Presentation is not to be disclosed to any other person or used for any other purpose and any other person

who receives this Presentation should not rely or act upon it.

Nothing in this disclaimer shall limit or exclude any liability which by law or regulation cannot be limited or

excluded.

See the slide titled “Glossary” at end of Presentation for definitions of those defined terms in the Presentation.

April 2015

Talk on North Sea Oil and Gas to

The EESC

With Focus on Xcite and the

Bentley Field Steve Kew

Chief Operating Officer

Xcite Energy Resources

3

April 2015

Agenda

–UK Oil and Gas Industry

–The European impact areas

–Xcite’s Bentley Field

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April 2015 5

North Sea From Google

April 2015 6

April 2015

The North Sea About the Industry Key facts

• Operations

• 99% of UK oil and gas production occurs under the seas surrounding the UK, from the seabed known as the UK continental shelf (UKCS).

• There is a network of 14,000 km of pipelines linking 107 oil platforms, 181 gas platforms and a large number of subsea installations.

• There are 383 producing fields, including 17 new ones which started production in 2008.

• Since 1965, 3,970 exploration and appraisal wells have been drilled at a cost of £58 billion (2008 money).

• In 2008, £1.4 billion was spent drilling 109 exploration and appraisal wells and 300-400 million barrels of oil and gas equivalent (boe) were discovered.

• The average size of the oil and gas fields discovered between 2000 and 2008 was 26 boe, compared with an average of 248 million boe in the ten years from 1966.

• Since 1965, over 6,000 development wells have been drilled to bring new discoveries into production.

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April 2015

The North Sea About the Industry Key facts

• Over the last 45 years, exploration and development of the UK’s oil and gas

reserves has created a supply chain with an unrivalled range of products,

services and expertise; there are now over 3,000 companies involved.

• Today, the supply chain provides to exploration and development companies

goods and services for reservoirs, wells, facilities, marine and subsea activities

as well as support services.

• The capability of this supply chain continues to grow as the UK develops new

fields in increasingly deep waters and faces the challenges of extending the

operating life of many mature assets in one of the most demanding oil and gas

provinces in the world.

• The supply chain's goods and services are now in strong demand in oil and gas

provinces around the world. Exports are estimated at about £6 billion annually

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April 2015

• The industry in 2012 is providing employment for 440,000 people across the whole country:

• The exploration for and extraction of oil and gas from the UKCS accounts for around 340,000 of these, comprising:

– 32,000 directly employed by oil and gas companies and their major contractors

– 207,000 within the wider supply chain

– 100,000 jobs supported by the economic activity induced by employees’ spending.

• In addition, a thriving exports business is estimated to support a further 100,000 jobs.

• Each £1 billion spent on the UKCS supports 15-20,000 jobs.

Employment Key Facts

April 2015

But Without Investment Support The Key Hubs Will Close Within 10

years

April 2015

• The Industrial Emissions Directive– including the Integrated Pollution Prevention and Control Directive (IPPC) and the Large

Combustion Plant Directive (LCP).

– Implications of the Medium Combustion Plant Directiveon UKCS oil and gas production

• The EU Emissions Trading System (EU ETS)

• Offshore Safety Directive

• European Commission’s proposed Hydrocarbons BREF

- Where does all the data go?- Who is analysing it?

- Can we access it?

European Issues

April 2015

Xcite and The Bentley Field

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April 2015 13

The North Sea Can be a Tough Place

April 2015

Introduction to Xcite Energy

Overview Independent Certified Reserves and Resources

35 year production profile

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• E&P independent listed on AIM (London) & TSX-V

(Toronto), ticker XEL

• 100% holder of 2 licences over 4 blocks in UK North

Sea

• Key asset: Bentley field, 257 MMstb 2P Reserves and

48 MMstb P50 Contingent Resources

• 35 year production profile; projected first phase peak

production of 45,000 bbls/day

• USD 250m Extended Well Test (“EWT”) proved key

technical and commercial aspects of the field and

simplified development plan

• Key development partners being selected – MOUs

signed with Baker Hughes, Teekay, AMEC and Arup

• Next phase of pre-FEED/assurance engineering with

partners to optimise development concept and refine

costs and schedule for project execution

• Intention to sign binding contracts, subject to FDP

approval, once engineering completed by end of 2014

Strategy to Reduce Project Risk by EWT and

Upfront Engineering

0

50

100

150

200

250

300

350

400

1P (P90) 2P (P50) 3P (P10)

MM

stb

Reserves Contingent Resources

April 2015

Well Appraised and Understood Heavy Oil Field

Well

NameCompleted Oper ator Hydr ocar bons Tests

9/3-1 1977 Amoco

Encountered 12°

API oil – 81 ft oil column

Nitrogen evacuation. Oil

too heavy to flow (no pump)

9/3-2A 1983 Conoco 92 ft oil columnESP lifted DST. No flow

due to pump failure

9/3-3 1986 ConocoDry hole on

separate structureNone

9/3-4 1986 Conoco 84 ft oil column

Not tested (commitment

well, low oil price environment)

Well

Name

Completed Oper ator Hydr ocar bons Tests

9/03b-5 2008 Xcite 87 ft oil column ESP lifted, average 125

stb/day with high skin

9/03b-6 2010 Xcite 113 ft oil column Logged and pressure

tested

9/03b-6Z 2010 Xcite 1,821 ft oil section

(horizontal)

ESP lifted, 36hr DST

reaching stabilized

2,900 stb/day

9/03b-7 2012 Xcite2,214 ft oil section

(horizontal)

ESP lifted ex tended flow

test, reaching 3,500

stb/day

9/03b-7Z 2012 Xcite2,042 ft oil section

(horizontal)

ESP lifted ex tended flow

test

Pre-Xcite Wells – 1970s and 1980s

Xcite Wells – 5 successful penetrations

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• Since 1977, Bentley has been

appraised with a total of 8

reservoir penetrations

• Latest 3D seismic shot in 2011

• Xcite has drilled 3 wells plus 2

horizontal laterals, including a 68

day pre-production EWT

April 2015 16

• Bentley is currently one of the largest, proven and undeveloped assets in the UK North Sea

• Long reserves production profile extending to 35 years, and beyond to 50 years assuming contingent resources

converted to reserves

• Optimisation and Enhanced Oil Recovery expected to further increase reserves

One of the Largest, Proven and Undeveloped Assets in the UK North Sea

Source: Wood MacKenzie database for all other fields than Bentley. Certified 2P reserves for Bentley as of

31.12.2013.Source: DECC, UK Annual Oil Production by Field, 1 Apr 2014. Cubic metres converted to bbls at conversion ratio

of 2.898.

* Bentley projected data, as currently modelled by the Issuer

Oil fields UKCS (remaining reserves) 2013 UKCS Oil Production

0 50 100 150 200

BUZZARD

FORTIES

CAPTAIN

FOINAVEN

ALBA

NELSON

DON SOUTH WEST

BACCHUS

NINIAN

TELFORD

CLAIR

HARDING

MACHAR

FRANKLIN

CALLANISH

ETTRICK

BERYL

BLAKE

CORMORANT NORTH

SCOTT

Mstb/day

Bentley projected

second phase peak

production, 57,000

bbls/day*

Bentley projected

production after 17

years (c.15,000

bbls/day)*

Bentley projected

production after

35 years (c.8,500

bbls/day)*

April 2015

EWT Designed to Test Water Cut and Long Term Productivity

9/3e

17

• Demonstrated successful multi-lateral

drilling

- 9/03b-7 (B6) lower lateral well

geosteered 60ft above OWC to ensure

water break-through and measure

increase in water cut during test period

- 9/03b-7Z (B5) upper lateral well

geosteered 5-10 ft from reservoir roof,

flowed and left as future producer

-3750

-3700

-3650

-3600

-3550

100015002000

De

pth

(ft

TV

DSS

)

Offset (m)

B6 Trajectory

B6 Top Dornoc h OWC

Top of Reservoir

Wellbore Path

Oil water Contact (OWC)

-3750

-3700

-3650

-3600

-3550

100015002000

De

pth

(ft

TV

DSS

)

Offset (m)

B5 Trajectory

B5 Top Dornoc h OWC

Oil water Contact (OWC)

Wellbore Path

Top of Reservoir

Well 6Z

Well 6

• Wells flowed for 57 days uptime, within 68 day test period which

included shut-ins/build-ups, production chemistry, etc

• Water break through better than expectations

April 2015

Xcite Managed Service Providers and Produced c.149,000 Barrels of Bentley Oil

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9 Mattresses

• Heated, de-gassed and co-flowed with water

• Blending managed to optimise marketability

• Confi rmed viability of FSO dehydration solution and offtake to market

Rig to Tanker offset 1.5 km – 1.7 km

Tether base &

8 Mattresses

1 x 300m “Lazy S” Riser

with distributed buoyancy

Water Depth 113m

Shuttle tanker with 750,000 bbls Storage

Tanker Manifold

Coupling Head

Upper Hose

(5 x 300m seabed lay)Swivel

1 x ‘Pipeline Chute’ with

max tension safety device

(1 x 300m ‘J Lay’ Riser)

Jack-Up Drilling Rig

‘Rowan Norway’

De-gas

Dehydrate

Blend

April 2015

Key Development Questions Answered

Question How Xcite has addressed this

Is there sufficient oil in the ground for a

viable development?

What is the nature of Bentley fluid and its

flowing properties?

Can Bentley fluid be flowed at commercial

rates?

Can oil-rate be sustained following water

break-through?

Can development plan contact a large area of

the field at reasonable cost?

Can produced fluids be processed and

exported efficiently?

Can exported fluids be sold at a reasonable

market price?

Mapping has consistently shown large in-place volume.

Current P50 = 907 MMstb

Vertical well 9/03b-5 flowed first oil and provided data

to predict flowing properties

Horizontal well 9/03b-6Z flowed at 2,900 stb/day per

lateral. Re-confirmed with 9/03b-7, 7Z, reaching 3,500

stb/day per lateral

Horizontal well 9/03b-7 EWT demonstrated better

than expected water break through behaviour

Long-reach, multi-lateral, horizontal wellbores. Over

6,000 ft reservoir drilled to date confirmed

methodology

Processed and delivered export quality crude to

market. Dehydration in 8-12 days = FSO solution

Approx. 150,000 stb Bentley crude sold supporting a

12% discount to Brent

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April 2015

Bentley Development Partners: Evolution of First Phase Concept

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AMEC, Arup Baker Hughes and Teekay have joined the development group to undertake pre-

FEED/assurance engineering with Xcite and move Bentley through FDP approval and on to long term

development

First Phase Development

April 2015 21

The Bentley Vision

April 2015

From an Unloved Bentley to ……..

April 2015

To the Beast