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.
-- 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.
-- Cash balance as at September 30, 2008 was Â£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:
FOR FURTHER INFORMATION PLEASE CONTACT:
+44 (0) 1330 826 740
Chief Executive Officer
Chief Financial Officer
Thomas Weisel Partners (UK) Limited
+44 (0) 20 7877 4300
Strand Partners Ltd.
+44 (0) 20 7409 3494
Pelham Public Relations
+44 (0) 20 7743 6676