OilVoice - Fugro Join Xcite Energy in Bentley Well Participation

Fugro Join Xcite Energy in Bentley Well Participation

Thursday, October 22, 2009

Xcite Energy Limited announces that its 100% subsidiary, Xcite Energy Resources Limited ("XER"), has entered into Heads of Agreement with Fugro Well Services Limited ("Fugro") for the provision of a turn-key tested well as the next stage in the development of the Bentley field.

Fugro has undertaken to drill and test a horizontal production well, which is intended to be the start of an early production system to deliver first oil on the field. Fugro will undertake this well on a risked basis, such that it will bear a material percentage of the cost of the well in return for a commitment to be engaged to carry out future work on behalf of XER if the well is successful. It is intended to spud this well at the end of Q1 2010, subject to regulatory approval, the availability of funding and finalisation of contract terms with Fugro.

Fugro is one of the world's leading service providers in the search for natural resources. Fugro also provides its clients with technical data and information in order to design, construct and maintain installations, structures and infrastructure in a safe and efficient manner.

In signing this agreement, Fugro has joined the Bentley Alliance, the management and operational structure created by XER as the vehicle to direct the Bentley field to full field development. The harnessing of the technical expertise, project management skills and financial strength of major contractors and other industry partners will greatly assist XER in taking the Bentley field into production. XER intends to widen the Bentley Alliance to other industry partners in due course as the field is moved towards development.

Richard Smith, Chief Executive of Xcite, commented:
"I am very pleased with the outcome of our farm-in process, which has resulted in the formation of the Bentley Alliance and we welcome Fugro as the first alliance partner to assist in the drilling and testing of the first production well on Bentley. This represents a major step forward for Xcite and creates great momentum as we move towards oil production from Bentley."