Excelsior Secures Extension and Amendment to Farm-in Agreement
Excelsior Energy Limited has reached agreement with Xcite Energy Resources Limited to extend the Financial Closing Date under the Farm-in Agreement relating to License P.1078 Block 9/3b in the UK North Sea from September 30,2006 to November 30,2006. This will afford Excelsior additional time to complete its financing programs to fund the planned work program.
Excelsior and Xcite agreed to release $US 500,000 of the Performance Deposit under the Farm-in Agreement to Xcite in payment of all past costs and accounts payable incurred by Xcite and attributable to License P. 1078 up to and including September 30, 2006. The Performance Deposit of $US 1,000,000 was placed in escrow on execution of the Farm-in Agreement by the amalgamation predecessors of Excelsior. The remaining $US 500,000 will continue to be held as a performance deposit under the Farm-in Agreement.
To ensure that we are ready to take advantage of available rig slots the parties also agreed to commence to well planning, site survey and other critical appraisal well planning activities in advance of completion of financing.
As a result of the current financial market conditions we are adapting our previously announced financing plans. Excelsior continues to vigorously pursue financing options that will enable us to finance our Farm-in obligations by the end of November 2006.
- Excelsior Wraps Up Well Delineation Program at Hangingstone Property (Mar 16)
- Excelsior's North Sea Subsidiary Closes Financing, Appoints New Board (Jun 09)
- Excelsior Selects Paradigm for Canadian Oil Sands Projects (Apr 21)
Company: Xcite Energy Resources Limited more info
- Xcite Confirms $35-per-Barrel Costs for Bentley Field (May 29)
- Xcite Signs Rig Provision Agreement for Bentley Field (Nov 17)
- Xcite Signs Services Deal with Baker Hughes for Bentley Field (Oct 20)