Contact Information: ENQUIRIES: Xcite Energy Limited +44 (0) 1330 826740 Richard Smith, Chief Executive Officer Rupert Cole, Chief Financial Officer Strand Partners Limited +44 (0) 20 7409 3494 James Harris, Director Rory Murphy, Director Arbuthnot Securities Limited +44 (0)20 7012 2000 Andrew Fairclough, Director Ed Burbidge Pelham Public Relations +44 (0) 20 7337 1500 Mark Antelme, Director Paradox Public Relations +1 514 341 0408 Jean-Francois Meilleur, Consultant Karl Mansour, Consultant
Xcite Energy Limited ("Xcite Energy" or the "Company"): Fugro Well Participation
This Announcement Is Not for Release, Publication or Distribution in or Into the United States
| Source: Xcite Energy Ltd
LONDON--(Marketwire - October 22, 2009) - Xcite Energy Limited (TSX-V : XEL ) (LSE : XEL ) (AIM : XEL ) ("Xcite" or the "Company") is pleased to announce that its 100%
subsidiary, Xcite Energy Resources Limited ("XER"), has entered into Heads
of Agreement with Fugro Well Services Limited ("Fugro") for the provision
of a turn-key tested well as the next stage in the development of the
Bentley field.
Fugro has undertaken to drill and test a horizontal production well, which
is intended to be the start of an early production system to deliver first
oil on the field. Fugro will undertake this well on a risked basis, such
that it will bear a material percentage of the cost of the well in return
for a commitment to be engaged to carry out future work on behalf of XER if
the well is successful. It is intended to spud this well at the end of Q1
2010, subject to regulatory approval, the availability of funding and
finalisation of contract terms with Fugro.
Fugro is one of the world's leading service providers in the search for
natural resources. Fugro also provides its clients with technical data and
information in order to design, construct and maintain installations,
structures and infrastructure in a safe and efficient manner.
In signing this agreement, Fugro has joined the Bentley Alliance, the
management and operational structure created by XER as the vehicle to
direct the Bentley field to full field development. The harnessing of the
technical expertise, project management skills and financial strength of
major contractors and other industry partners will greatly assist XER in
taking the Bentley field into production. XER intends to widen the Bentley
Alliance to other industry partners in due course as the field is moved
towards development.
Richard Smith, Chief Executive of Xcite, commented:
"I am very pleased with the outcome of our farm-in process, which has
resulted in the formation of the Bentley Alliance and we welcome Fugro as
the first alliance partner to assist in the drilling and testing of the
first production well on Bentley. This represents a major step forward for
Xcite and creates great momentum as we move towards oil production from
Bentley."
Neither 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 June 30, 2008 and in the annual
Management's Discussion and Analysis for Xcite Energy dated March 26, 2009
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.