Xcite Energy Limited (“XEL” or the “Company”) was incorporated in January 2007 and is registered in the British Virgin Islands under Company Number 1376877.

The Company is a heavy oil development company currently focused on the development of discovered resources in the North Sea.  Through Xcite Energy Resources Limited (“XER”), its wholly-owned UK subsidiary, the Company has a 100% working interest in Blocks 9/3b, containing the Bentley Oil field 9/3c and 9/3d situated in the North Sea.

Business Strategy

• Bring the Bentley field into commercial production
• Grow its reserves base from the existing 116 million barrels of oil equivalent (“MMboe”) of 2P reserves through the conversion of its prospective resources base
• Grow its resources base further through drilling activity on Blocks 9/3c and 9/3d
• Employ enhanced oil recovery processes (“EOR”) to further increase its resource base
• Increase its asset portfolio through license rounds and asset transactions whilst utilising its heavy-oil expertise to leverage opportunities

Bentley Field

Xcite Energy’s Bentley field is one of the largest undeveloped fields in the North Sea, containing some 550 MMstb in-place of 10°-11° API heavy oil. Following a highly successful flow test of the 9/3b-6Z well in December 2010, Xcite Energy are moving the field towards development. Further drilling and testing is being undertaken in 2012 which will leave well infrastructure in place for the development. It will also enable finalising of the field development plan for approval later in the year.

Xcite Energy holds and operates 100% of the Bentley field located in Block 9/3b (Licence P1078). The Licence was granted to XER under a Promote Licence in 2003 and converted to a Traditional Licence in 2005.

The Bentley field is located on the East Shetland Platform in the UK Northern North Sea, 8 km southeast of the Bressay Field (currently operated by Statoil), 15 km east of the Kraken Field (operator: Enquest) and 20 km north-northeast of the Bruce Field (operator: BP).

The Bentley Field, discovered in 1977, is a four-way dip closed structure of Lower Eocene and Upper Palaeocene Dornoch sandstone reservoir, containing around 550 MMstb in-place of 10°-11° API heavy oil. It is delineated by five wells and one sidetrack and with 3D seismic reprocessed in 2008. The 9/3b-5 well, drilled and tested by XER in December 2007 to January 2008, was the first to flow hydrocarbons to surface since its discovery in 1977. Information gathered from 9/3b-5 enabled XER to drill, complete and flow test the 9/3b-6 pilot and 6Z horizontal sidetrack which:

• Demonstrated commercial flow-rates
• Confirmed that horizontal wells could be drilled and geo-steered through friable reservoir
• Demonstrated a viable upper and lower completion strategy for horizontal producers
• Proved XER’s understanding of the key drivers behind successfully flowing heavy oil

The 9/3b-6Z well flow test performed significantly above XER’s highest modelled assumptions, flowing at a surface constrained, final stabilised rate, of 2,900 bopd and confirmed that a commercial development of Bentley is viable with existing technology.

Bentley is planned as a phased development which enables:

• Lower initial costs
• Earlier first-oil
• Knowledge from early phases to optimise design of later phases

Xcite Energy anticipate that its reserves base will grow:

• As further phases of the development mature
• With utilisation of enhanced oil recovery (EOR) techniques
• Through appraisal drilling on the surrounding prospects

Other Working Interests

As well as block 9/3b containing the Bentley field, Xcite Energy holds and operates blocks 9/3c (Licence P1760) and 9/3d (Licence P1761).  These were awarded in the 26th UK Licensing Round and Xcite Energy will continue to participate in future Rounds.

Within these blocks Xcite Energy have identified a series of prospects within the same Dornoch sandstone that is present at Bentley.  If proven through subsequent drilling, these prospects could add significantly to the value of the Bentley area.

Roger S. Ramshaw

Roger S. Ramshaw is Chairman and a Non-Executive Director of Xcite. From 2002 until his retirement in 2003, Roger was Chairman and Managing Director of ConocoPhillips (UK) Ltd, where he led the company’s exploration, development and production business on the UKCS. From 1999 to 2002, he was President of Conoco Venezuela Ltd, leading the company’s commercialisation of heavy oil assets. Roger has over 30 years of domestic and international experience in operations, project and commercial activity in the petroleum industry.

Gregory J. Moroney

Gregory J. Moroney is a Non-Executive Director of Xcite and chairs the Remuneration and Nominating Committee. Greg is the Founding and Managing Member of Energy Capital Advisors LLC of Greenwich, Connecticut, which he founded in 2003 to assist independent energy companies and energy fund managers in North America in their fund-raising activities. Greg is also a director of BreitBurn Energy Partners L.P., an oil and gas limited partnership listed on NASDAQ. From 1993 to 2002, he was head of the Structured Finance Group for the Energy and Natural Resource Sector – Western Hemisphere at Deutsche Bank Securities in New York. Greg has over 25 years of experience as an energy finance specialist.

Scott R. Cochlan

Scott R. Cochlan is a Non-Executive Director of Xcite and is a member of the Remuneration and Nominating Committee. Mr. Cochlan is a partner at the law firm of Torys LLP in the Corporate and Capital Markets group. Mr. Cochlan has represented senior and junior public issuers in numerous aspects of general corporate law and securities regulatory matters including corporate governance, continuous disclosure, regulatory compliance and transaction negotiation and completion. Mr. Cochlan also has extensive experience in representing both issuers and underwriters in a wide variety of complex private and public financing matters (equity and debt), including cross-border financings, mergers, acquisitions and other business reorganizations and restructurings. Mr. Cochlan holds a law degree from the University of Calgary and a B.A. from the University of Western Ontario. Mr. Cochlan has received a number of recognitions as a leading lawyer in his field.

Timothy S. Jones

Timothy S. Jones is a Non-Executive Director of Xcite and chairs the Audit Committee. He is a Chartered Accountant, with twenty years’ experience in professional practice covering a number of industries including oil and gas. Following major public company roles, he formed his own accountancy and consulting practice to focus on the oil and gas sector, where he specialises in providing advice to AIM listed companies. He is currently on the board of a number of AIM listed natural resources companies.

Richard E. Smith

Richard E. Smith is CEO and an Executive Director of Xcite. From 2000 until joining XER in 2003, Richard was Programme Director at Granherne, formerly of the Halliburton Group of companies, where he was responsible for the creation and formation of a business providing programme management services to clients in the international onshore and offshore oil and gas business. Richard is a Chartered Engineer and has over 28 years of experience in engineering and business management in onshore and offshore oil and gas projects. He is a Fellow of the Institute of Civil Engineers and a Corporate Member of the Institute of Marine Engineers and the Royal Institute of Naval Architects.

Rupert E. Cole

Rupert E. Cole is Chief Financial Officer and an Executive Director of Xcite. From 2002 until joining XER in 2003, Rupert was Programme Management Business Adviser at Granherne, a company within the Halliburton Group of companies, providing strategic, commercial and financial advice to upstream oil and gas services providers. From 1990 to 1996, Rupert was Finance Director at Harpur, an international downstream service provider to major oil companies. Rupert is a Chartered Accountant and has over 23 years of experience in corporate finance.

Stephen A. Kew

Stephen A. Kew is Exploration and Development Director of Xcite. Stephen has been a director of 3 Sigma Limited since 1999, a petroleum engineering consultancy company in the upstream oil and gas business. Stephen is a Petroleum Engineer and has over 37 years of development engineering and project management experience in the oil and gas industry, including 25 years with Conoco and previous experience in respect of the Bentley field, Block 9/3b. He is an associate of the Institution of Chemical Engineers, a member of the Society of Petroleum Engineers and a Former President of the Scottish Oil Club.

For Management Team please click here.

Updated from Xcite Energy website 22.05.2012