Xcite Energy Limited ("Xcite Energy" or the "Company") Financial Results for the Year Ended December 31, 2009
March 25 2010 - 3:00AM
Marketwired
This Announcement Is Not for Release, Publication or Distribution
in or Into the United States.
Xcite Energy (TSX-V: XEL) (LSE: XEL) (AIM: XEL), a developer of
heavy oil assets in the UK North Sea, is pleased to announce its
results for the year ended December 31, 2009. The Company has again
made significant progress, the key highlights of which are:
Highlights
- The company re-processed its 3D seismic to show a most likely
recovery estimate of 160 million barrels of oil from the Bentley
oil field ("Bentley").
- Formation of the Bentley Alliance and engaging industry leading
partners including BP, AMEC, Transocean and ADTI to assist in the
programme to bring Bentley into development.
- Successful equity capital funding in March 2010, raising GBP
23.5 million net of expenses to drill the 9/3b-R pre-development
well on Bentley and for working capital purposes.
- Secured Challenger Minerals (North Sea) Limited ("CMNS") as
farm-in partner to Bentley, whereby CMNS will provide US$4 million
towards the costs of the 9/3b-R well for a 4% working interest,
thus assigning a US$100 million pre-money valuation to
Bentley.
- Secured a Transocean jack-up rig to drill 9/3b-R
pre-development well, subject to contract completion.
- Now positioned to move forward to drill the 9/3b-R
pre-development well with the objective of demonstrating the
commercial value of the Bentley oil field.
Richard Smith, Chief Executive of Xcite Energy,
commented:
"The latter half of 2009 and the first part of 2010 have seen a
significant change of investment sentiment for the smaller oil and
gas community and particularly for Xcite Energy, with the securing
of industry leading business partners and institutional funding to
support us in bringing Bentley into development. We now have the
commercial building blocks and finances in place to drill the
9/3b-R pre-development well on Bentley in the summer; a watershed
event for the Company."
The Company's full Financial Results for the
Year Ended December 31, 2009 can be found at the following
link
http://www.rns-pdf.londonstockexchange.com/rns/1517J_1-2010-3-24.pdf.
The Company has filed the following reports required under
National Instrument 51-101 Standards of Disclosure for Oil and Gas
Activities: Form 51-101F1 Statement of Reserves Data and Other Oil
and Gas Information; and Form 51-101F3 Report of Management and
Directors on Oil and Gas Disclosure. In addition to these forms,
the Company has also filed copies of its audited financial
statements and management discussion and analysis in respect
thereof for the year ended December 31, 2009. These documents can
be found for viewing by electronic means on the System for
Electronic Document and Analysis Retrieval at www.sedar.com
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 December 8, 2009 and in the annual Management's
Discussion and Analysis for Xcite Energy dated March 24, 2010 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.
ENQUIRIES: Xcite Energy Limited Richard Smith Chief Executive
Officer Rupert Cole Chief Financial Officer +44 (0) 1330 826 740
Arbuthnot Securities Limited (Broker) Andrew Fairclough Ed Burbidge
+44 (0)20 7012 2000 Strand Hanson Limited (Nomad) James Harris Rory
Murphy +44 (0) 20 7409 3494 Pelham Bell Pottinger Public Relations
Mark Antelme Henry Lerwill +44 (0) 20 7337 1500 Paradox Public
Relations Jean-Francois Meilleur Karl Mansour 1 514 341 0408