In response to feedback from the Department of Energy and Climate Change ("DECC") on the Bentley field development plan, Xcite has re-configured its approach to the first phase of development of Bentley to provide a more financially efficient outcome.
This re-configuration has allowed the Company to maintain the first oil date in 2012, while enabling the completion of a more cost effective field development plan. The principal elements of this plan are Phase 1A with first oil planned for 2012, Phase 1B planned for 2013 and Phase 2 estimated to commence in 2016. The Company understands that the plan is in the final stages of DECC approval.
If DECC approval is obtained, the financial resources to commence Phase 1A are available. The Company continues to make good progress with respect to securing additional sources of funding, including project finance from commercial lending banks.
While adopting this more financially efficient approach to Phase 1, the Company intends to pre-invest substantially in Phase 1B and Phase 2, with the objective of lowering the unit cost of oil produced and, thus, maximizing the commercial industry value of the Bentley asset in advance of Phase 1B.
Management considers that this re-configuration of the Phase 1 production and financial plans for the Bentley field should maximize shareholder value. Further announcements will be made to the market as soon as practicable.
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