Friday 31 May 2013

Xcite Energy looks at longer term rig alternatives

Xcite Energy (LON:XEL, CVE:XEL) revealed it is looking at alternative development drilling plans for its Bentley field as it has now cancelled a rig contract with Rowan.
It had an option for a Rowan jack-up rig however Xcite says it no longer believes the terms and structure of the rig option are appropriate for its commercialobjectives.
The oil field developer massively increased the Bentley heavy oil field’s reserves in April, up to 198-312mln barrels, and that has triggered the re-think, towards a more long term solution.
It is now in talks with other rig providers over alternative commercial solutions which it believes will have better ‘strategic alignment’ and structures to reflect an amended field development programme.
Additionally, the company said that expressions of interest have now been issued to a number of drill rig providers to formally develop an optimised drilling solution for the Bentley field.
“The amendments to the Bentley field development plan have given us the opportunity to construct a more commercially attractive and longer term approach to drilling up the field, and we are encouraged by the alternative structures that the industry has to offer. 
 “We look forward to updating the market in due course on the outcome of this initiative, which could further enhance the economics of the Bentley field development."

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