Xcite Energy Limited ("Xcite Energy" or the "Company") 9/3b-6 Well Update
October 25 2010 - 2:00AM
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) -- The Company
is pleased to announce that the 9/3b-6 well on the Bentley field is
progressing on plan, on schedule and has reached target depth for
the first part of the planned work programme, the pilot section of
the well.
The pilot section confirmed 113ft oil column, some 40ft thicker
than the 73ft prognosis, in a high quality Dornoch reservoir and
confirmed the oil water contact at 3729ft total vertical depth (on
prognosis). The oil column has 100% net to gross (compared to
previous average of 88%). Management believes that this height of
oil column confirms that an upside structure is present in the
eastern half of the reservoir, significantly increasing the volume
of oil in place.
The pilot section has provided valuable reservoir information
for use in optimising the placing of the horizontal wellbore and
for planning the first stage development.
The pilot section was extended to test the Jurassic play concept
approximately 800ft deeper than the Bentley field Dornoch
accumulation and encountered 15ft of Jurassic reservoir with oil
shows.
The pilot section has now been cemented and abandoned, and work
has commenced on the horizontal side track which is planned to flow
test the Dornoch oil column. The completion and testing of the
horizontal section is expected by the end of November.
The Bentley oil field is located on Block 9/3b (Licence 1078),
approximately 160km east of the Shetland Isles, in which Xcite
Energy holds 100% working interest.
Stephen Kew has reviewed and approved the technical information
contained within this press release in his capacity as a qualified
person, as required under the AIM Rules. Stephen Kew is Head of
Exploration and Development at Xcite Energy and is an associate of
the Institution of Chemical Engineers and a member of the Society
of Petroleum Engineers.
Neither the 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.
ADVISORY REGARDING FORWARD LOOKING
STATEMENTS
Information in this news release that is not current or
historical factual information may constitute forward-looking
information within the meaning of securities laws. Such information
is often, but not always, identified by the use of words such as
"seek", "anticipate", "plan", "schedule", "continue", "estimate",
"expect", "may", "will", "project", "predict", "upside",
"potential", "targeting", "intend", "could", "might", "should",
"believe", "if successful" and similar expressions.
Implicit in this information are assumptions regarding
measurements from instrumentation, which are subject to the
inherent minor inaccuracies of offshore oilfield measurement
processes. These assumptions, although considered reasonable by the
Company at the time of preparation of this press release, may prove
to be incorrect. Readers are cautioned that actual future operating
results and economic performance of the Company are subject to a
number of risks and uncertainties, including general economic,
market and business conditions and could differ materially from
what is currently expected. Although this press release discloses
information regarding the oil columns, oil shows and reservoirs
encountered in the pilot section of the Company's 9/3b-6 well,
readers are cautioned that reserves have not been attributed to,
and there is no certainty that it will be commercially or
technically viable to produce hydrocarbons from, such well. In
addition, readers should note that references to "oil in place" in
this press release do not represent references to recoverable
volumes of oil.
For more exhaustive information on these risks and uncertainties
you should refer to the Company's most recently filed annual
information form which is available at www.sedar.com. You should
not place undue importance on forward-looking information and
should not rely upon this information as of any other date. While
the Company may elect to, it is under no obligation and does not
undertake to update this information at any particular time except
as may be required by applicable securities laws.
ENQUIRIES: Xcite Energy Limited Richard Smith Chief Executive
Officer Rupert Cole Chief Financial Officer +44 (0) 1330 826740
Arbuthnot Securities Limited (Nomad and Broker) Antonio Bossi
Director +44 (0)20 7012 2000 Pelham Bell Pottinger Mark Antelme
Henry Lerwill Director +44 (0) 20 7861 3232 Paradox Public
Relations Jean-Francois Meilleur Consultant +1 514 341 0408