Xcite Energy Resources has canceled a contract for the Rowan rig in the North Sea. The company announced May 31 it canceled the option for a jack-up drilling unit from British American Offshore Limited because it no longer feels the terms and structure of the rig option fit its commercial objectives.
The company entered the rig contract in February 2011 and amended in February 2012 before extended well tests on the Bentley field were completed in September 2012.
Xcite Energy Resources is still having conversations with other drilling rig providers for alternative commercial solutions. Xcite said other solutions may help it deliver a better business plan to fit what it believes reflects its amended development project for the Bentley field.
"We are grateful for the provision of the Rowan Norway and the associated drilling support during the successful extended well test last year," said Rupert Cole, CEO of Xcite Energy. "The amendments to the Bentley field development plan have given us the opportunity to construct a more commercially attractive and longer term approach to drilling up the field, and we are encouraged by the alternative structures that the industry has to offer."