ABERDEENSHIRE, UK--(Marketwire - May 27, 2010) - This Announcement Is Not for Release, Publication or Distribution in or Into the United States
Xcite Energy (
Highlights
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Formation of the Bentley Alliance and engaging industry leading partners including BP, AMEC, Transocean and ADTI to assist in the programme to bring the Bentley field into development.
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Successful equity capital funding in March 2010, raising approximately £23.1 million net of expenses to drill the 9/3b-R pre-development well on Bentley and for working capital purposes.
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Secured Challenger Minerals (North Sea) Limited ("CMNS") as farm-in partner to Bentley, whereby CMNS will provide US$4 million towards the costs of the 9/3b-R well for a 4% working interest.
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Secured a Transocean jack-up rig to drill 9/3b-R pre-development well, subject to contract completion.
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Now positioned to move forward to drill the 9/3b-R pre-development well with the objective of demonstrating the commercial value of the Bentley oil field.
Richard Smith, Xcite Energy Chief Executive Officer commented:
"With a seminal first quarter of the year, we have created the opportunity to demonstrate the commercial value of the Bentley field through the drilling of the 9/3b-R well later this year. The continuing dedication and hard work of the Xcite team, together with the belief and support of our advisors, is proving to be a powerful combination as a semblance of stability returns to our business environment."
The Company's unaudited Financial Results for the 3 Months Ended March 31, 2010 can be found at the following link: http://www.rns-pdf.londonstockexchange.com/rns/6162M_-2010-5-26.pdf
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 December 8, 2009 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.
Contact Information:
ENQUIRIES:
Xcite Energy Limited
+44 (0) 1330 826740
Richard Smith, Chief Executive Officer
Rupert Cole, Chief Financial Officer
Arbuthnot Securities Limited
(Nomad and Broker)
+44 (0)20 7012 2000
Antonio Bossi, Director
Andrew Fairclough, Director
Pelham Bell Pottinger
+44 (0) 20 7861 3894
Mark Antelme, Director
Paradox Public Relations
+1 514 341 0408
Jean-Francois Meilleur, Consultant