ABERDEENSHIRE, UNITED KINGDOM--(Marketwire - Feb 3, 2012) -
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART
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SUCH JURISDICTION
TSX-V, LSE-AIM: XEL
3 February 2012
Xcite Energy Limited
("Xcite Energy" or the "Company")
Amendment to Rowan Rig Contract
Xcite Energy is pleased to announce that its 100% subsidiary, Xcite
Energy Resources Limited ("XER"), has negotiated an amendment to its
rig contract with British American Offshore Limited, a subsidiary of
Rowan Companies Inc. ("Rowan"). The amendment provides additional
flexibility around timing of the provision of a heavy duty, harsh
environment jack up drilling unit, which will better suit the revised
work programme as anticipated for Phase 1B of the first phase
development of the Bentley field.
The original contract provided for a fixed 240 day initial period for
the Phase 1A work programme, commencing from arrival of the rig at the
Bentley field location, followed by six consecutive one year extension
options. The first one year extension option was required to be
exercised by XER no later than 120 days after the start of the 240 day
initial period.
The contract amendment provides XER with the following:
- The ability to shorten the 240 day initial period for Phase 1A,
thereby reducing its financial commitment if completion of the work
programme is ahead of schedule.
- The ability at any time up to 240 days after the end of Phase 1A in
which to re-call an appropriate rig from the Rowan fleet for Phase 1B
of the Bentley field development (the "Call Option").
- A flexible delivery window of between 14 and 20 months from the
exercise of the Call Option for the selected rig, to be determined in
consultation with Rowan to match the construction and installation of
facilities for Phase 1B of the Bentley field development.
Commenting on today's announcement Richard Smith, CEO, said:"This is a very
good outcome for the Company allowing us to maintain
our principal objective of using a suitable jack-up unit for the first
phase of the Bentley development. This amendment provides greater
flexibility to manage the timing and costs of our revised work
programme for Phase 1B."
ENQUIRIES:
Xcite Energy Limited +44 (0) 1483 549 063
Richard Smith Chief Executive Officer
Rupert Cole Chief Financial Officer
Oriel Securities (Joint Broker and Nomad) +44 (0) 207 710 7600
Emma Griffin Partner
Simon Edwards Partner
Morgan Stanley (Joint Broker) +44 (0) 207 425 8000
Andrew Foster Managing Director
Pelham Bell Pottinger +44 (0) 207 861 3232
Mark Antelme Director
Henry Lerwill Account Director
Paradox Public Relations +1 514 341 0408
Jean-Francois MeilleurConsultant
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
Oriel Securities which is authorised and regulated in the United
Kingdom by the Financial Services Authority, is acting exclusively for
Xcite Energy and for no one else in connection with the subject matter
of this announcement and will not be responsible to anyone other than
Xcite Energy for providing the protections afforded to its clients or
for providing advice in connection with the subject matter of this
announcement.
Morgan Stanley which is authorised and regulated in the United Kingdom
by the Financial Services Authority, is acting exclusively for Xcite
Energy and for no one else in connection with the subject matter of
this announcement and will not be responsible to anyone other than
Xcite Energy for providing the protections afforded to its clients or
for providing advice in connection with the subject matter of this
announcement.
Forward-Looking Statements
Certain statements contained in this announcement constitute
forward-looking information within the meaning of securities laws.
Forward-looking information may relate to the Company's future outlook
and anticipated events or results and, in some cases, can be identified
by terminology such as "may", "will", "should", "expect",
"plan","anticipate", "believe", "intend", "estimate", "predict",
"target","potential", "continue" or other similar expressions concerning
matters
that are not historical facts. These statements are based on certain
factors and assumptions including expected growth, results of
operations, performance and business prospects and opportunities. While
the Company considers these assumptions to be reasonable based on
information currently available to us, they may prove to be incorrect.
Forward-looking information is also subject to certain factors,
including risks and uncertainties that could cause actual results to
differ materially from what we currently expect. These factors include
risks associated with the oil and gas industry (including operational
risks in exploration and development and uncertainties of estimates oil
and gas potential properties), the risk of commodity price and foreign
exchange rate fluctuations and the ability of Xcite Energy to secure
financing. Additional information identifying risks and uncertainties
are contained in the Company's annual information form dated October
26, 2010 and in the annual Management's Discussion and Analysis for
Xcite Energy dated November 15, 2011 filed with the Canadian securities
regulatory authorities and available at www.sedar.com . The Company
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise, except as required under applicable
securities regulations.
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