www.xcite-energy.com
The Company, through its wholly owned subsidiary, Xcite Energy Resources Limited (“XER”), is an oil exploration and development company, which is focused on the exploration and development of heavy oil resources in the North Sea on the United Kingdom Continental Shelf.
The Company is incorporated and domiciled in the BVI under the BVI Business Companies Act, 2004 with its registered office in Tortola, BVI. As such, the rights of shareholders may be different from the rights of shareholders in a UK incorporated company. The Company is listed on AIM in London and the Toronto Stock Exchange – Venture Division in Canada.
In 2003, XER was awarded its 100% working interest in the Bentley field in Block 9/3b in the UK North Sea. All of the Company’s current material assets are held through XER.
XER’s corporate office is located at 1 Farnham Road, Guildford, Surrey, GU2 4RG, United Kingdom. XER’s operational office located at 2 Queen’s Gardens, Aberdeen, AB15 4YD, United Kingdom.
The executive management team of the Company includes experienced oil professionals with over 100 years of combined industry experience.
Xcite says development plan changes a more "financially efficient" way of unlocking Bentley's value
The comments were made in a shareholder update in which the group also said it is optimistic it will be able to convert 87 million barrels of contingent resources to the higher confidence proved and probable (2P) category.
Xcite Energy (LON:XEL, CVE:XEL) said the changes to its field development plan provide a “viable and more financially efficient” means of commercialising the Bentley North Sea oil field.
The comments were made in a shareholder update in which the group also said it is optimistic it will be able to convert 87 million barrels of contingent resources to the higher confidence proved and probable (2P) category.
This will occur once the Department of Energy and Climate Change has given the sign-off for the Bentley field development plan.
The upgrade would give Xcite 115 million barrels of 2P reserves.
“We had hoped, and remain optimistic, that this response will be received shortly and that the field development update could have been made in conjunction with the announcement of a number of other important events for the company in the coming weeks,” Xcite said.
Today’s statement followed an announcement on December 1 that revealed the company had “reconfigured its approach” to the development of the heavy oil discovery.
The planned first stage production programme for Bentley will be split into two parts - phases 1A and 1B.
As a result, the overall oil field development project will take marginally longer than previously thought to bring on stream.
The revised plan means that Xcite can still achieve first oil next year, as it originally planned, but phase 1B is set for 2013 and phase 2 is penciled in to start in 2016.
It added: “We have a highly valuable asset being managed by an experienced and knowledgeable team, supported by, in our view, excellent technical and financial advisers.
"Bentley remains a complex project, which we are striving to bring to fruition as efficiently as possible in challenging economic circumstances.
"We have confidence in the outcome and ask for the patience and support of shareholders while we progress the various initiatives.
“We reiterate the commitment of the board of directors and management team to its shareholders.
“For over eight years, the Xcite Energy team has been and continues to work hard on the Bentley project and we are now at a decisive stage for the company, with drilling planning for phase 1A proceeding on schedule.
Separately, the company also said this morning work has started on the enhanced oil recovery programme.
It said it is identifying the “technologies and business methods that can deliver significant additional barrels from Bentley through tertiary production techniques”.
“Our early work is encouraging,” Xcite added.
