Xcite Energy has declared its results for the 3 months ended 30 June 2011. The second quarter of 2011 has seen important progress in the Company's plans for the First Stage Production (FSP) programme on the Bentley field, with the Rowan Norway harsh environment, deep water jack-up rig being delivered on time to Rowan in Singapore from the Keppel FELS construction yard. The rig will now be transported to Dundee using the OHT Hawk heavy lift vessel, where it will undergo final testing and will be crewed and equipped for its deployment onto the Bentley field.

Preparations for the final submission to the Department of Energy and Climate Change (DECC) of a Field Development Plan for the Bentley field remain on track and are consistent with the rig deployment timing.

Financing discussions are progressing satisfactorily, with a number of different options being assessed in parallel with the submission of the Field Development Plan to DECC.

On 26 July 2011 the Company announced that a submission had been made to DECC of the Environmental Statement for the planned First Stage Production on the Bentley field. This is a standard DECC requirement in connection with, but not simultaneous with the submission of a field development plan.

The completion of the Reserves Assessment Report (RAR) on the Bentley field and the announcement of its principal findings as published by the Company on 10 May 2011 and followed by the announcement of the filing of the Material Change Report on 17 May 2011 has, in management's opinion, de-risked the field significantly and greatly enhanced its value by upgrading it to reserves status.

The RAR focused on the reserves accessed from a single drill centre in the northern area of the field relating to the FSP, together with the Second Stage Production (SSP) from the same drill centre. Together the FSP and the SSP comprise the core area of the reservoir.

The RAR assigned a NPV10 (after tax) value per barrel as approximatley $14.20 for the 28 million barrels 2P reserves in the FSP, or in aggregate $396 million. The RAR assigned a NPV10 (after tax) value per barrel as approximately $11.00 for the 87 million barrels of 'best' estimate contingent resources in the SSP, or in aggregate $961 million.

Tags: Xcite Energy