BP Oil Agrees to Market, Sell Bentley Crude

Xcite Energy, the 100% owner of the Bentley field, has concluded an agreement with BP Oil International Limited, whereby BPOl will provide the offtake services to market and sell the Bentley crude oil in return for an incentive-based fee per barrel.

The offtake fee is directly related to the realized price achieved by BPOI for the Bentley crude oil in relation to the prevailing Brent crude price, incentivising BPOI to maximise the price per barrel achieved for XER by minimizing the discount to Brent crude.

In addition, BPOI have undertaken that, subject to certain conditions, when Xcite Energy move to full field development, an associated BP company will procure $20m of financing from a commercial bank for Xcite Energy with credit support from BP, for the purpose of assisting with the full field development of the Bentley field, the terms of which will be negotiated in due course.

Richard Smith, Xcite Energy Chief Executive Officer commented, "We are delighted to welcome BP Oil International as our offtake partner in the Bentley field. This is a relationship that brings the global resources and expertise of the BP oil trading organisation to manage the marketing and selling of the Bentley crude, together with assistance in financing the work programme as we move towards first oil on the field. This is another watershed for the Company, which underpins the value of Bentley crude through field life and significantly progresses the plan for development."