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11/04/2011

Rupert Cole at Xcite Energy says it’s almost set for first stage production

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Additional Information
Market: AIM, TSX-V
Sector: Energy
EPIC: XEL
Latest Price: 91.75p  (2.23% Ascending)
52-week High: 397.50p
52-week Low: 72.50p
Market Cap: 192.49M
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Xcite Energy
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.

Full Xcite Energy profile here
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Xcite Energy raises C$9.3m for Bentley field work programme

24th Aug 2010, 2:54 pm Xcite Energy raises C$9.3m for Bentley field work programme

North Sea focused oil explorer and developer Xcite Energy (LON:XEL, TSX:XEL) has raised £5.8 million, or C$9.3 million in a placing after announcing on Friday it had agreed to raise C$8.5 million.

Earlier this month, Xcite said that it had hired Arbuthnot Securities and FirstEnergy Capital, which had received indicative commitments in excess of C$8.5 million.

The funds will be used to finance an enhanced work programme on the 9/3b-R well on the Bentley field in the North Sea. The company is hoping the programme will result in a higher degree of certainty of outcome from the planned horizontal flow test as well as provide significant additional data and an acceleration of the planned first stage production programme.

Xcite placed a total 9.7 million shares at 60 pence per share, which represents a discount to yesterday’s closing price of 68.5 pence. The placing has been conditionally approved by the TSX Venture Exchange.

The placing shares will represent 6.7% of the company’s enlarged share capital.

Drilling on the 9/3b-R well is set to commence next month.

The plan has been updated and now includes a slant pilot well section. The company said that the new approach was only possible due to its recent decision recent decision to use Diamond offshore Drilling’s semi-submersible, ‘Ocean Nomad’ drilling rig. According to Xcite the Ocean Nomad has significant operating advantages over the originally planned jack-up rig.

By drilling a slant pilot well through the reservoir, Xcite expect to optimise horizontal well placement, whilst collecting a range of data to assist the planning of the First Stage Production (FSP) programme.

The well will then be suspended for re-use at a later date as part of the FSP, which would potentially provide early oil revenues and consequently reduce funding requirements for the production programme. Subsequently this off-take will be sold to Xcite’s partner BP (LON:BP) - who will also conduct blending and refinery tests on the Bentley oil.

With the support of its development partners, collectively known as the Bentley Alliance, Xcite has been making rapid progress in the development of the Bentley field over the past year.

The Bentley field has independently assessed contingent resources of 122.5 million barrels on a most likely basis, which has been upped to 160 million barrels by the management following a reassessment of 3D seismic.

Should the resource be converted to 2P (proven and probable) reserves, Xcite would become the third largest independent producer in the North Sea.

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