27th Dec 2007 14:00
Xcite Energy Limited27 December 2007 THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES TSX-V, LSE-AIM: XEL December 27, 2007 XCITE ENERGY LIMITED ("Xcite Energy" or the "Company") Spudding of 9/3b-5 Appraisal Well Xcite Energy, a heavy oil company focused on the development of discoveredresources in the UK North Sea, is pleased to announce that the 9/3b-5 appraisalwell on the Bentley field has now spudded. The Company anticipates reaching itstarget depth in the second week of January, and expects testing to be completedbefore the end of January. The Bentley heavy oil discovery is located on Block 9/3b, in which Xcite Energyholds a 100% interest, 160km east of the Shetland Isles and covering an area ofapproximately 200 km(2). Bentley has been drilled by three of the four wells onBlock 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 prospectiveresources of 109 million barrels of oil ("mmbbls") and P50 oil-in-place volumesof 592 mmbbls for Block 9/3b, as more fully described in the Company's admissiondocument 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 milestonesas we target first production from Bentley in early 2009, with full fielddevelopment planned for 2011. We have an experienced team in place and we lookforward to commencing Xcite Energy's activities on one of the largestundeveloped heavy oil fields in the North Sea" Enquiries: Xcite EnergyRichard Smith [email protected] +44 (0) 1330 826 740 Chief Executive OfficerRupert Cole, [email protected] +44 (0) 1330 826 740 Chief Financial Officer Pelham Public RelationsAlisdair Haythornthwaite [email protected] +44 (0)20 7743 6676 +44 (0)7714 721 379Katherine Stewart [email protected] +44 (0)20 3170 7439Lucy Frankland [email protected] +44 (0)20 3008 5509 Stephen Kew has reviewed and approved the technical information contained withinthis press release in his capacity as a competent person, as required under theAIM rules. Stephen Kew is Head of Exploration and Development at Xcite Energyand is an associate of the Institution of Chemical Engineers and a member of theSociety 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 willactually be recovered from an accumulation and, if probabilistic methods areused, 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 agiven date to be potentially recoverable from known accumulations but are notcurrently economic. "crude oil" means a mixture that consists mainly of pentanes and heavierhydrocarbons, which may contain sulphur and other non-hydrocarbon compounds,that is recoverable at a well from an underground reservoir and that is liquidat the conditions that is recoverable at a well from an underground reservoirand that is liquid at the conditions under which its volume is measured orestimated. It does not include solution gas or natural gas liquids. "discovered resources" means those quantities of oil and gas estimated on agiven date to be remaining in, plus those quantities already produced from,known accumulations. Discovered resources are divided into economic anduneconomic categories, with the estimated future recoverable portion classifiedas reserves and contingent resources, respectively. "field" means an area consisting of a single reservoir or multiple reservoirsall grouped on or related to the same individual geological structural featureand/or stratigraphic condition. "heavy oil" means oil with API gravity of less than 22 degrees and reservoirviscosity greater than 5 cp. "High Estimate" is considered to be an optimistic estimate of the quantity thatwill actually be recovered from an accumulation and, if probabilistic methodsare used, this term reflects a P10 confidence level. "lead" means an identified potential hydrocarbon trap which requires furtherwork before becoming a drill-ready prospect. "Low Estimate" is considered to be a conservative estimate of the quantity thatwill actually be recovered from an accumulation and, where probabilistic methodsare used, this term reflects a P90 confidence level. "original resources" means those quantities of oil and gas estimated to existoriginally in naturally occurring accumulations; they are, therefore, thosequantities of oil and gas estimated on a given date to be remaining in knownaccumulations, plus those quantities already produced from known accumulations,plus those quantities in accumulations yet to be discovered. Original resourcesare 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 thanstated value "P50" means a 50%probability that the value will be equal to or greater thanstated value. "P90" means a 90% probability that the value will be equal to or greater thanstated value. "petroleum" means oil and/or gas. "prospect" means an identified potential hydrocarbon trap which is sufficientlywell defined and de-risked to merit the drilling of an exploration well. "prospective resources" means those quantities of oil and gas estimated on agiven date to be potentially recoverable from undiscovered accumulations. Ifdiscovered, they would be technically and economically viable to recover. "reserves" means those quantities of oil and gas anticipated to be economicallyrecoverable from discovered resources. "reservoir" means a porous and permeable underground formation containing anatural accumulation of producible oil or gas that is confined by impermeablerock or water barriers and is individual and separate from other reservoirs. "stb" stock tank barrel(s) measured at 14.7 psia and 60(TM)Fahrenheit. "STOIIP" means stock tank volume of oil initially-in-place. "undiscovered resources" means those quantities of oil and gas estimated on agiven date to be contained in accumulations yet to be discovered. The following measures and abbreviations shall have the meanings set forthbelow: Oil LiquidsBbl(s) = BarrelsBoe = Barrels of oil equivalentMbbls = thousand barrelsMMboe = million barrels of oil equivalentMMbbls = million barrelsMcf = thousand cubic feetBbbls = billion barrelsbbls/d = barrels per day Forward-Looking Statements Certain statements contained in this announcement constitute forward-lookinginformation within the meaning of securities laws. Forward-looking informationmay relate to the Company's future outlook and anticipated events or resultsand, 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 expressionsconcerning matters that are not historical facts. These statements are based oncertain factors and assumptions including expected growth, results ofoperations, performance and business prospects and opportunities. While theCompany considers these assumptions to be reasonable based on informationcurrently available to us, they may prove to be incorrect. Forward-lookinginformation is also subject to certain factors, including risks anduncertainties that could cause actual results to differ materially from what wecurrently 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 inXcite Energy' prospectus filed with the Canadian securities regulatoryauthorities, available at www.sedar.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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