11th Nov 2015 10:48
LONDON (Alliance News) - Xcite Energy Ltd on Wednesday said its subsidiary Xcite Energy Resources PLC entered into an agreement with Azinor Catalyst Ltd on UKCS Licence P.1979 in the UK North Sea.
The licence contains blocks 9/4a, 9/8b and 9/9h.
Catalyst will undertake, at its own cost, a detailed technical evaluation of the licence area, according to Xcite, which said the evaluation with utilise "advanced interpretation techniques and integrated subsurface modelling, to further delineate and de-risk the prospects".
Catalyst will become entitled to 40% of the equity in the licence in exchange for completing the technical evaluation.
The deal is subject to approval from UK Secretary of State for Energy and Climate Change Amber Rudd.
"Following completion of this evaluation, Xcite and Catalyst will determine whether the analysis would derive additional benefit from the acquisition of an induced polarization survey (potential hydrocarbon indicator) to further de-risk the prospects," Xcite said.
"If mutually agreed, the induced polarization survey would be fully funded by Catalyst, for which Catalyst would become entitled to a further 10% of the equity in the licence, upon completion," Xcite said.
Shares in Xcite Energy were up 6.4% at 21.27 pence on Wednesday morning.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Xcite Energy