ABERDEENSHIRE, UK--(Marketwire - December 27, 2007) -
THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR
INTO THE UNITED STATES
Xcite Energy (
TSX-V:
XEL) (
LSE:
XEL) (
AIM:
XEL), a heavy oil company
focused on the development of discovered resources in the UK North Sea, is
pleased to announce that the 9/3b-5 appraisal well on the Bentley field has
now spudded. The Company anticipates reaching its target depth in the
second week of January, and expects testing to be completed before the end
of January.
The Bentley heavy oil discovery is located on Block 9/3b, in which Xcite
Energy holds a 100% interest, 160km east of the Shetland Isles and covering
an area of approximately 200 km². Bentley has been drilled by three of the
four wells on Block 9/3b, being wells 9/3-1 (Amoco, 1977), 9/3-2A (Conoco,
1983) and 9/3-4 (Conoco, 1986).
RPS Energy Canada Ltd. has assigned best estimate contingent and
prospective resources of 109 million barrels of oil ("mmbbls") and P50
oil-in-place volumes of 592 mmbbls for Block 9/3b, as more fully described
in the Company's admission document published on 7 November 2007.
Richard Smith, Chief Executive Officer of Xcite Energy, commented:
"The spudding of the 9/3b-5 appraisal well marks the first of our key
milestones as we target first production from Bentley in early 2009, with
full field development planned for 2011. We have an experienced team in
place and we look forward to commencing Xcite Energy's activities on one of
the largest undeveloped heavy oil fields in the North Sea"
Stephen Kew has reviewed and approved the technical information contained
within this press release in his capacity as a competent person, as
required under the AIM rules. Stephen Kew is Head of Exploration and
Development at Xcite Energy and is an associate of the Institution of
Chemical Engineers and a member of the Society of Petroleum Engineers.
The TSX Venture Exchange does not accept responsibility for the adequacy or
accuracy of this release.
Glossary
"Best Estimate" is considered to be the best estimate of the quantity that
will actually be recovered from an accumulation and, if probabilistic
methods are used, this term is a measure of central tendency of the
uncertainty distribution (most likely/mode, P50/median, or arithmetic
average/mean).
"contingent resources" means those quantities of oil and gas estimated on a
given date to be potentially recoverable from known accumulations but are
not currently economic.
"crude oil" means a mixture that consists mainly of pentanes and heavier
hydrocarbons, which may contain sulphur and other non-hydrocarbon
compounds, that is recoverable at a well from an underground reservoir and
that is liquid at the conditions that is recoverable at a well from an
underground reservoir and that is liquid at the conditions under which its
volume is measured or estimated. It does not include solution gas or
natural gas liquids.
"discovered resources" means those quantities of oil and gas estimated on a
given date to be remaining in, plus those quantities already produced from,
known accumulations. Discovered resources are divided into economic and
uneconomic categories, with the estimated future recoverable portion
classified as reserves and contingent resources, respectively.
"field" means an area consisting of a single reservoir or multiple
reservoirs all grouped on or related to the same individual geological
structural feature and/or stratigraphic condition.
"heavy oil" means oil with API gravity of less than 22 degrees and
reservoir viscosity greater than 5 cp.
"High Estimate" is considered to be an optimistic estimate of the quantity
that will actually be recovered from an accumulation and, if probabilistic
methods are used, this term reflects a P10 confidence level.
"lead" means an identified potential hydrocarbon trap which requires
further work before becoming a drill-ready prospect.
"Low Estimate" is considered to be a conservative estimate of the quantity
that will actually be recovered from an accumulation and, where
probabilistic methods are used, this term reflects a P90 confidence level.
"original resources" means those quantities of oil and gas estimated to
exist originally in naturally occurring accumulations; they are, therefore,
those quantities of oil and gas estimated on a given date to be remaining
in known accumulations, plus those quantities already produced from known
accumulations, plus those quantities in accumulations yet to be discovered.
Original resources are divided into discovered resources, which are limited
to known accumulations, and undiscovered resources.
"P10" means a 10% probability that the value will be equal to or greater
than stated value
"P50" means a 50%probability that the value will be equal to or greater
than stated value.
"P90" means a 90% probability that the value will be equal to or greater
than stated value.
"petroleum" means oil and/or gas.
"prospect" means an identified potential hydrocarbon trap which is
sufficiently well defined and de-risked to merit the drilling of an
exploration well.
"prospective resources" means those quantities of oil and gas estimated on
a given date to be potentially recoverable from undiscovered accumulations.
If discovered, they would be technically and economically viable to
recover.
"reserves" means those quantities of oil and gas anticipated to be
economically recoverable from discovered resources.
"reservoir" means a porous and permeable underground formation containing a
natural accumulation of producible oil or gas that is confined by
impermeable rock or water barriers and is individual and separate from
other reservoirs.
"stb" stock tank barrel(s) measured at 14.7 psia and 60™ Fahrenheit.
"STOIIP" means stock tank volume of oil initially-in-place.
"undiscovered resources" means those quantities of oil and gas estimated on
a given date to be contained in accumulations yet to be discovered.
The following measures and abbreviations shall have the meanings set forth
below:
Oil Liquids
Bbl(s) = Barrels
Boe = Barrels of oil equivalent
Mbbls = thousand barrels
MMboe = million barrels of oil equivalent
MMbbls = million barrels
Mcf = thousand cubic feet
Bbbls = billion barrels
bbls/d = barrels per day
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 changes in market and
competition, governmental or regulatory developments and general economic
conditions. Additional information identifying risks and uncertainties are
contained in Xcite Energy' prospectus filed with the Canadian securities
regulatory authorities, available at
www.sedar.com.
Contact Information: Enquiries:
Xcite Energy
Richard Smith
Chief Executive Officer
+44 (0) 1330 826 740
Rupert Cole
Chief Financial Officer
+44 (0) 1330 826 740
Pelham Public Relations
Alisdair Haythornthwaite
+44 (0)20 7743 6676
+44 (0)7714 721 379
Katherine Stewart
+44 (0)20 3170 7439
Lucy Frankland
+44 (0)20 3008 5509