Xcite to reduce costs of North Sea Bentley oil project

Offshore staff

ABERDEEN, UK – Britain’s Secretary of State for the Department of Energy and Climate Change has extended Xcite Energy Resources’ P.1078 license containing the Bentley field until the end of June 2017. 

This should allow Xcite to secure the financing required for the approval of its development plan for the Bentley heavy-oil field in the UK northern North Sea, and to repay outstanding senior secured bonds by the end of June 2016.

Xcite is in discussions to progress proposals that could allow a fully funded first-phase development plan to be submitted to the Oil and Gas Authority (OGA) later this year.

The company has completed its technical review of the first phase with the OGA.

Recently Xcite finished a cost review that included revised quotes from contractors and suppliers of material services, equipment, and drilling programs. As a result, it expects costs to decrease to around $30/bbl.

CEO Rupert Cole said: “We still have a lot of work to do, but our objectives of reducing execution risk, working collaboratively and developing a fit-for-purpose, economic and efficient development concept has been critical to generate the support we need for our financing process.”

02/18/2016

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