Xcite announced its results for the year ended December 31, 2010. The year has been transformational for the Company, the key highlights of which are:
- Successful completion and flow testing of the 9/3b-6z 1,800ft horizontal well on the Bentley field, with a stabilized flow rate of 2,900 barrels of oil equivalent per day, significantly exceeding the pre-drill upside reservoir model expectations;
- Successful 9/3b-6 pilot well showing the eastern flank reservoir height to be greater than prognosis, together with 100% net to gross reservoir pay;
- 9/3b-6 and 9/3b-6z wells have provided all the information required to move forward with the reserves assessment currently being undertaken;
- Recent Budget changes in North Sea tax will not affect the Company's plans to move forward with its First Stage Development. The increased benefit of the heavy oil tax allowances will have a material offsetting effect on the increased supplemental corporation tax charge;
- Successful equity capital financings, raising more than £50 million net of expenses to drill the wells on the Bentley field and for working capital purposes;
- Increase in the Standby Equity Distribution Agreement facility to £100 million, of which £32.75 million has been drawn down;
- Contract signed for the Rowan Norway deep water, harsh environment jack-up drilling and production rig to commence the First Stage Production program on the Bentley field scheduled for late 2011;
- Significant uplift in the market capitalization of the Company.
Richard Smith, Chief Executive of Xcite Energy, commented, "These results speak for themselves. This has been an outstanding year for the Xcite team, the investors who have supported us and for the Company's development and prospects. We look forward to 2011, as we move ahead with plans to bring the Bentley field into production."