THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR
INTO THE UNITED STATES
TSX-V, LSE-AIM: XEL
25 March 2011
Xcite Energy Limited
("Xcite Energy" or the "Company")
Results for the Year Ended December 31, 2010
Xcite Energy is pleased to announce its results for the year ended
December 31, 2010. The year has been transformational for the Company,
the key highlights of which are:
Highlights
- Successful completion and flow testing of the 9/3b-6z 1,800ft
horizontal well on the Bentley field, with a stabilised flow rate of
2,900 barrels of oil equivalent per day, significantly exceeding the
pre-drill upside reservoir model expectations;
- Successful 9/3b-6 pilot well showing the eastern flank reservoir
height to be greater than prognosis, together with 100% net to gross
reservoir pay;
- 9/3b-6 and 9/3b-6z wells have provided all the information required
to move forward with the reserves assessment currently being
undertaken;
- Recent Budget changes in North Sea tax will not affect the Company's
plans to move forward with its First Stage Development. The increased
benefit of the heavy oil tax allowances will have a material offsetting
effect on the increased supplemental corporation tax charge;
- Successful equity capital financings, raising more than GBP50 million
net of expenses to drill the wells on the Bentley field and for working
capital purposes;
- Increase in the Standby Equity Distribution Agreement facility to
GBP100 million, of which GBP32.75 million has been drawn down;
- Contract signed for the Rowan Norway deep water, harsh environment
jack-up drilling and production rig to commence the First Stage
Production programme on the Bentley field scheduled for late 2011;
- Significant uplift in the market capitalisation of the Company.
Richard Smith, Chief Executive of Xcite Energy, commented:"These results
speak for themselves. This has been an outstanding year
for the Xcite team, the investors who have supported us and for the
Company's development and prospects. We look forward to 2011, as we
move ahead with plans to bring the Bentley field into production."
The Company's full Financial Results for the Year Ended December 31,
2010 can be found at the following link:
http://www.rns-pdf.londonstockexchange.com/rns/6099D_-2011-3-24.pdf
The Company has filed the following reports required under National
Instrument 51-101 Standards of Disclosure for Oil and Gas Activities:
Form 51-101F1 Statement of Reserves Data and Other Oil and Gas
Information; and Form 51-101F3 Report of Management and Directors on
Oil and Gas Disclosure. In addition to these forms, the Company has
also filed copies of its audited financial statements and management
discussion and analysis in respect thereof for the year ended December
31, 2010. These documents can be found for viewing by electronic means
on the System for Electronic Document and Analysis Retrieval at
www.sedar.com
ENQUIRIES:
Xcite Energy Limited +44 (0) 1483 549 063
Richard Smith Chief Executive Officer
Rupert Cole Chief Financial Officer
Arbuthnot Securities +44 (0) 20 7012 2000
Limited
(Nomad and Broker)
Antonio Bossi Director
Pelham Bell Pottinger +44 (0) 20 7861 3232
Mark Antelme Director
Henry Lerwill
Paradox Public Relations +1 514 341 0408
Jean-Francois Meilleur Consultant
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.
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 March 24, 2010 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
Contact Information: Contacts: RNS Customer Services 0044-207797-4400 http://www.rns.com