ABERDEENSHIRE, UK--(Marketwire - December 03, 2008) -
THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES
Xcite Energy (TSX-V: XEL) (LSE: XEL) (AIM: XEL) is a heavy oil company focused on the development of discovered resources in the United Kingdom North Sea. The Company holds a 100% working interest in Block 9/3b, the Bentley field, one of the largest undeveloped heavy oil fields in the United Kingdom North Sea.
The Company is listed on the AIM Market of the London Stock Exchange (AIM) and the TSX Venture Exchange (TSX-V).
The Company today announces its financial and operational results for the 3 month period ended September 30, 2008 and its outlook for 2009.
KEY HIGHLIGHTS
Operational
-- Realisation of the commercial potential of the Bentley field continues
to be progressed through essential study work and commercial discussions.
-- Important new understanding of the Bentley crude's in-situ cold flow
behaviour has been achieved through the correlation of the successful drill
stem test on well 9/3b-5 with historic data.
-- Improved understanding of applicable well and process technologies
resulting from the successful 9/3b-5 drill stem test underpins management
confidence in economic productivity and recoverability, even at low oil
prices.
-- Re-processing of the 3D seismic data confirms that Bentley is a major
North Sea asset. Interpretation of this dataset is underway, with initial
findings supporting a material increase in oil in place, leading to
improved commercial productivity characteristics compared to the initial 3D
interpretation and the original 2D seismic data.
-- The neighbouring Bressay Field (6km) has been shown to be a close
reservoir analogue field for Bentley, with similar crude oil and geological
properties. StatoilHydro, as Operator of Bressay, has recently completed a
well and already shared its initial thinking for the development of the
field with a target first oil date in 2014.
Financial
-- Cash balance as at September 30, 2008 was £2.7 million in line with
budget.
-- Challenging market conditions are likely to impact on the Bentley work
programme timetable.
Below is a link to Management's Discussion and Analysis and Interim Consolidated Financial Statements:
http://www.rns-pdf.londonstockexchange.com/rns/4794J_-2008-12-3.pdf
FOR FURTHER INFORMATION PLEASE CONTACT:
ENQUIRIES:
Xcite Energy
+44 (0) 1330 826 740
Richard Smith
Chief Executive Officer
Rupert Cole
Chief Financial Officer
Thomas Weisel Partners (UK) Limited
+44 (0) 20 7877 4300
Paul Colucci
Managing Director
Paul Newman
Managing Director
Strand Partners Ltd.
+44 (0) 20 7409 3494
James Harris
Director
Warren Pearce
Associate Director
Pelham Public Relations
+44 (0) 20 7743 6676
Alisdair Haythornthwaite
Director
Katherine Stewart
Account Manager
