Xcite Energy Limited, a developer of heavy oil assets in the UK North Sea, announces its results for the 3 month period ended September 30, 2009.
Highlights
• Formation of the Bentley alliance (the "Alliance"), the management and operational structure created by Xcite Energy as the vehicle to direct the Bentley field to full field development.
• Agreement reached with Fugro Well Services Ltd ("Fugro") 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.
• Successful fund raising of £2.1 million gross (CAN$3.8 million) in early October from new and existing shareholders.
• Drilling of geotechnical test well in Q4 2009 to confirm usability of jack-up rig.
• Significant progress made to plan for and engineer the 9/3b-R well in Q1 2010.
• Intention to secure additional Alliance partners in advance of 9/3b-R well.
Richard Smith, Xcite Energy Chief Executive Officer commented:
"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."