Needed in buckets. It seems a long time but in real north sea/oil production terms it is not. Although field was originally discovered in the 80's it really only flowed commercially in 2010_2012. So development normally takes 5 yrs or so from these dates. This will come good. If mariner/bressay/Bentley were devoped together with eor those will become a billion barrel field with 200 kbbls being delivered every day. And for 35+ yrs. Serious tax incentives ate needed and the guy who cocked it all up 3 yrs ago by raising tax revenue needs to get his Arris into gear and sort it pronto.. Atb all
Results for the 3 and 6 Month Periods Ended 30 June 2014
Xcite Energy announces its results for the 3 and 6 month periods ended 30 June 2014.
Highlights for the year to date
· Memorandum of Understanding signed with Aibel AS, further enhancing the industry service provider partnership for the development of the Bentley field, which already includes AMEC Group Ltd., Ove Arup & Partners Ltd. and Teekay Shipping Norway AS.
· Collaboration Agreement signed with Statoil (U.K.) Ltd. and Shell U.K. Ltd., for the sharing of technical and operational information to evaluate potential synergies and collaboration in the development of the Bentley and Bressay oil fields.
· US$ 140 million raised through the issue of senior secured bonds and issue of new equity share capital, and repayment of the US$ 80 million of unsecured loan notes.
· Upgrade in 1P, 2P and 3P oil reserves for the Bentley field to 203 MMstb, 257 MMstb and 317 MMstb, respectively, effective 31 December 2013 and based on an initial 35 year production period.
· Material Licence extension granted by the Department of Energy and Climate Change for the Bentley field until 31 December 2016.
· Profit for the 3 month period ended 30 June 2014 of £0.51 million.
· Cash balance of £41.5 million as at 30 June 2014.
Rupert Cole, Chief Executive Officer of Xcite Energy, commented:
"We have continued to make good progress towards our near term objective of the submission of the field development plan, with expansion of the development group, continuing engineering work and constructive contract discussions. With the industry beginning to recognise what can be achieved with an enhanced partnership model and the collaboration initiatives noted from the recently published Wood Review, I am very pleased that the efforts of the team are translating into commercial agreements to develop the Bentley field. With much to do in the coming months, we shall keep stakeholders updated at each step of the way."
Little surprising it's being done now as installation of the platform and the rig is years away as yet. Perhaps it's part of the FDP for approval to use the ACE, they need to do it at some point, or the order confirmation aspect for the platform, where they want to re-assure themselves of the seabed conditions on location. The platform itself is basically one big leg, with 60m x 60m suction base (believe that's the approx dimns given) and central slot through which to drill.
Have been happy to have been buying back in at sub-62p, got as many as i want for the time being, although if it is still at this level once I've had news on my West of Shetland one which I'm in heavily, then i may well move some funds across. Taking a lot longer here than people expected, but can't really see why it won't happen eventually as they're hardly likely to just leave the oil sat there doing nothing!
Though perhaps further drilling will be constrained until arrival of the platform due to the nature of the ACE unit. Drilling would be either via cantilevered j/u rig, or rig on the platform drilling through the central platform leg as there is no keyhole, with intended well completion methodology, subsea, whatever, issues that might also need to await the unit being on site and set.
Drilling using rotary techniques for the purposes of obtaining geological information about rocks and/or seabed sediments. Any drilling for the purposes of searching for or getting of petroleum is not included in this definition, but is subject to the requirements of both the Habitats Regulations and the Offshore Petroleum Production and Pipelines (Assessment of Environmental Effects) Regulations 1999. The scope of this definition is also determined by regulation 4, which states that consent is required for “drilling for the purpose of obtaining geological information about strata”.
The logical reason for this operation would be for platform legs although you wouldn’t rule out Subsea kit (Tow heads, PLEM, etc). I’d think this operation would be around the £100k mark, not something you would do without good reason.
P.S. Note things are moving along at Bressay also."
Delivery of the FSU in the grand plan is probably the major constraint as matters currently stand, pity they don't just start next year with the rig and chartered in FSU, while waiting years for the rest of the kit to arrive.
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