21st May 2008 12:00
THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES
TSX-V, LSE-AIM: XEL
May 21, 2008
XCITE ENERGY LIMITED
StatoilHydro Well Data Trade
Xcite Energy Limited ("Xcite Energy" or the "Company"), a heavy oil company focused on the development of discovered resources in the UK North Sea, is pleased to announce that it has concluded an agreement to trade key well data (the "Agreement") with Statoil (U.K.) Limited, the UK arm of StatoilHydro, the Norwegian oil major with a significant international position in heavy oil and responsible for around half of the proven, but not yet developed, heavy oil deposits on the UK continental shelf. This Agreement follows from ongoing dialogue with StatoilHydro that commenced in 2007 and is another step forward in the progression of the heavy oil sector in the UK North Sea.
The Agreement allows for the pre-exchange of data from the 9/3b-5 appraisal well on the Bentley field, successfully drilled by Xcite Energy, which will be reciprocated with the data from the 3/28a-F(6) appraisal well on the StatoilHydro operated Bressay field, which is anticipated to be completed by mid November 2008. The Bressay field is located principally in Blocks 3/27 and 3/28, adjacent and to the north-west of Block 9/3b.
Richard Smith, Chief Executive Officer of Xcite Energy, commented:
"This agreement to trade well data is an important step forward towards a wider data sharing environment for heavy oil in the UK North Sea, which in turn will potentially accelerate development of the heavy oil sector in the region. It is also another step forward for Xcite Energy as we focus on maximising the value of the Company's resources and move towards a development solution for the Bentley field, one of the largest undeveloped heavy oil fields in the North Sea"
Enquiries:
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Xcite Energy |
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+44 (0) 1330 826 740 |
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Richard Smith |
Chief Executive Officer |
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Rupert Cole |
Chief Financial Officer |
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Thomas Weisel Partners (UK) Limited |
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+44 (0) 20 7877 4472 |
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Paul Colucci |
Managing Director |
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Paul Newman |
Managing Director |
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Strand Partners Ltd. |
+44 (0) 20 7409 3494 |
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James Harris |
Director |
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Warren Pearce |
Associate Director |
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Pelham Public Relations |
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+44 (0) 20 7743 6676 |
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Alisdair Haythornthwaite |
Director |
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Katherine Stewart |
Account Executive |
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Lucy Frankland |
Account Executive |
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Editors' Notes
Xcite Energy (www.xcite-energy.com) is an appraisal and development company currently focused on the development of heavy oil resources in the North Sea on the UK Continental Shelf (the "UKCS"). The Company has a 100% working interest in Block 9/3b, the Bentley Field, one of the largest undeveloped heavy oil fields in the North Sea.
The Bentley heavy oil field on Block 9/3b (Licence P. 1078) is approximately 160km east of the Shetland Isles. Bentley has been drilled by three of the four previous wells on Block 9/3b, being wells 9/3-1 (Amoco, 1977), 9/3-2A (Conoco, 1983) and 9/3-4 (Conoco, 1986). The 9/3b-5 well is the fifth well on the Block.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Glossary
"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.
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. The Company does not intend and does not assume any obligation to update these forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law.
Related Shares:
Xcite Energy