ABERDEENSHIRE, UK--(Marketwire - May 21, 2008) -
THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR
INTO THE UNITED STATES
Xcite Energy Limited (
TSX-V:
XEL) (
LSE:
XEL) (
AIM:
XEL) ("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."
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.
Contact Information: Enquiries:
Xcite Energy
+44 (0) 1330 826 740
Richard Smith
Chief Executive Officer
Rupert Cole
Chief Financial Officer
Thomas Weisel Partners (UK) Limited
+44 (0) 20 7877 4472
Paul Colucci
Managing Director
Paul Newman
Managing Director
Strand Partners Ltd.
+44 (0) 20 7409 3494
James Harris
Director
Warren Pearce
Associate Director
Pelham Public Relations
+44 (0) 20 7743 6676
Alisdair Haythornthwaite
Director
Katherine Stewart
Account Executive
Lucy Frankland
Account Executive