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Xcite Energy agrees exploration farm-out in North Sea

Published: 02:26 11 Nov 2015 EST

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Azinor can earn up to 50% of the North Sea exploration acreage

Xcite Energy (LON:XEL) has agreed a new partnership with Azinor Catalyst for its UKCS Licence P.1979, its exploration acreage.

Azinor is earning a 40% stake in the exploration project by conducting a detailed technical evaluation of the area. It is expected to do that using advanced interpretation techniques and integrated subsurface modelling.

The aim will be to delineate and de-risk the prospects identified by Xcite, the company said.

Additionally, the new partner will also be able to acquire an additional 10%, taking its stake up to 50%, if it conducts an induced polarization survey to further de-risk the exploration targets.

"We are very pleased to be working with Catalyst, who will be able to accelerate the technical assessment of the Licence whilst we continue to focus our core attention on the Bentley field,” said Rupert Cole, Xcite chief executive.

“By collaborating with Catalyst, we believe that the evaluation of these prospects and their potential value can be undertaken in the near future, so that we can meet our obligations under the Licence."

Nick Terrell, Azinor managing director, meanwhile, said: “This transaction provides an entry point into a Licence with material and high potential prospectivity. 

“We look forward to working with the Xcite team and maturing this exploration opportunity."

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