Xcite Energy Limited ("Xcite Energy" or the "Company") Effect of 2009 Budget and Appointment of Divestment Advisor
ABERDEENSHIRE, UK--(Marketwire - April 28, 2009) - THIS ANNOUNCEMENT IS NOT FOR RELEASE,
PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES
Xcite Energy (TSX-V: XEL) (LSE: XEL) (AIM: XEL), the developer of heavy oil
assets in the UK North Sea, is pleased to report:
2009 Budget -- heavy oil Field Allowance -- tax reduction of GBP 160
million
In connection with the 2009 HM Treasury Budget statement on April 22, Xcite
Energy reports that the Bentley field in Block 9/3b in the UK North Sea
falls within the scope of the new Field Allowance to support investment in
heavy oil projects.
The Field Allowance, based on 100% ownership of the field, will reduce the
corporation tax (supplementary) charge applicable to the Bentley field by
GBP160 million, which would increase the net present value of the field as
presented in the Base Case in the recent Competent Person's Report by more
than US$100 million.
Appointment of Divestment Advisor
Xcite Energy has appointed Stellar Energy Advisors ("Stellar") to manage
the partial divestment process to help fund the next intervention on the
Bentley field, planned for 2010. Stellar is a leading independent portfolio
management consultancy for the upstream international oil and gas
community, with significant heavy oil experience.
Richard Smith, Xcite Energy Chief Executive Officer, commented:
"We welcome the introduction of this Field Allowance for heavy oil fields
and the positive effect that it will have on the already robust economics
of the Bentley field. The GBP 160 million increase in retained value that
will accrue to the field will provide added benefit to industry and
financial partners seeking significant value uplift and, in this context,
the divestment of part of the Bentley field is well timed. We are very
pleased to have the expertise and assistance of Stellar in this transaction
and we look forward to a successful outcome."
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 changes in market and
competition, governmental or regulatory developments and general economic
conditions. Additional information identifying risks and uncertainties are
contained in the Company's annual information form dated June 30, 2008
filed with the Canadian securities regulatory authorities, 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.
Contact Information: ENQUIRIES:
Xcite Energy Limited
Richard Smith
Chief Executive Officer
Rupert Cole
Chief Financial Officer
+44 (0) 1330 826 740
Thomas Weisel Partners International Limited
Paul Colucci
Managing Director
Jesse Meidl
Vice President
+44 (0) 20 7877 4300
Strand Partners Limited
James Harris
Director
Rory Murphy
Director
+44 (0) 20 7409 3494
Pelham Public Relations
Mark Antelme
Director
+44 (0) 20 7337 1500