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.
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.
Xcite Energy Says Its Making Progress Towards Watershed Moment As It Prepares For First Development Well In North Sea
In its Q3 results statement, North Sea oil developer Xcite Energy Limited (AIM & TSX-V: XEL) said that its ‘Bentley Alliance’, will provide a watershed moment for the company as it begins the drilling of the first development well in the Bentley field in Q1 2010.
In the three months ended 30th September 2009, the group has continued to make progress with the planning for the development of the Bentley oil field. Xcite said its emphasis during the last quarter was on securing field partners and setting up the Bentley Alliance.
Xcite reached an agreement with Fugro Well Services Ltd to drill and test the first development well on the Bentley field, the 9/3b-R well, on a risked basis. Fugro will bear a material percentage of the cost of the well as the first Alliance partner.
Expenditure in the quarter predominantly comprised the costs of study work and planning for the next stage in the development of the Bentley field, including the preparation for the drilling of a technical borehole on Bentley, which is scheduled to be conducted during Q4.
The Bentley field is the company’s primary asset.
In the period the company reported a loss of £249,000, slightly widening from Q2 due to charges for previously deferred tax payments. Also in the quarter Xcite successfully completed a fund raising of £2.1 million The funds will be used to secure the necessary industry partners and to further commercial arrangements in relation to the development of the Bentley field.
Xcite said that it intends to pursue a number of commercial initiatives involving potential business partners and production sharing contractors to facilitate further work on the Bentley field. According to Xcite, Q4 is likely to be characterised by a low expenditure rate, with efforts focussed on advancing the concept of the Bentley Alliance and the completion of drilling the geotechnical test well.
Xcite Energy CEO Richard Smith commented on the company’s progress: "We are very pleased with the market's support for our recent fund raising and its positive reaction to the creation of the Bentley alliance with Fugro as the first partner. This represents a significant step forward in the development of the company and in drilling the first development well in the Bentley field, planned to commence in the first quarter of 2010. This will be a watershed event for the Company and we look forward to continued support from shareholders in order to successfully pursue our strategy."
