11 Nov 2015 07:00
11 November 2015
Xcite Energy Limited
("Xcite" or the "Company")
Farm-in Agreement with Azinor Catalyst on Licence P.1979
Xcite is pleased to announce that its wholly owned subsidiary, Xcite Energy Resources plc, has entered into an agreement with Azinor Catalyst Limited ("Catalyst") in relation to its UKCS Licence P.1979, containing Blocks 9/4a, 9/8b and 9/9h (the "Licence"). Under the agreement, Catalyst will undertake, at its own cost, a detailed technical evaluation of the Licence area, utilising advanced interpretation techniques and integrated subsurface modelling, to further delineate and de-risk the prospects identified by Xcite on the Licence.
In return for completing this technical evaluation, and subject to approval from the Secretary of State for Energy and Climate Change, Catalyst will become entitled to 40% of the equity in the Licence. Following completion of this evaluation, Xcite and Catalyst will determine whether the analysis would derive additional benefit from the acquisition of an Induced Polarization survey (potential hydrocarbon indicator) to further de-risk the prospects. If mutually agreed, the Induced Polarization survey would be fully funded by Catalyst, for which Catalyst would become entitled to a further 10% of the equity in the Licence, upon completion.
Rupert Cole, Xcite CEO commented:
"We are very pleased to be working with Catalyst, who will be able to accelerate the technical assessment of the Licence whilst we continue to focus our core attention on the Bentley field. By collaborating with Catalyst, we believe that the evaluation of these prospects and their potential value can be undertaken in the near future, so that we can meet our obligations under the Licence."
Nick Terrell, Azinor Catalyst Managing Director commented:
"As part of our strategy of technology-led exploration in the UKCS, we are extremely pleased to have signed this agreement which further expands our footprint in the region. This transaction provides an entry point into a Licence with material and high potential prospectivity. We look forward to working with the Xcite team and maturing this exploration opportunity."
ENQUIRIES:
Xcite Energy Limited |
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Rupert Cole / Andrew Fairclough |
| +44 (0)1483 549 063 |
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Liberum (Joint Broker and Nominated Adviser) |
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Clayton Bush / Jamie Richards |
| +44 (0)203 100 2222 |
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Morgan Stanley (Joint Broker) |
| +44 (0)207 425 8000 |
Andrew Foster |
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Bell Pottinger |
| +44 (0)203 772 2500 |
Henry Lerwill |
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Notes to Editors
Xcite Energy Limited is an appraisal and development company, whose wholly-owned subsidiary, Xcite Energy Resources plc, holds 100% of the interests in two licences in the UK North Sea - P.1078, containing the Bentley field in block 9/4b, and P.1979, containing blocks 9/4a, 9/8b and 9/9h. The Bentley field is one of the largest, undeveloped oil fields in the UK North Sea, with 265 MMstb 2P reserves.
Azinor Catalyst Limited is a Seacrest Capital Group-backed E&P company, focused on the United Kingdom Continental Shelf. The company is a qualified UK offshore operator and is focused on generating significant value for its stakeholders through advanced seismic technology and other geotechnical de-risking technologies ahead of drilling oil & gas exploration opportunities.
Forward-Looking Statements
Certain statements contained in this announcement constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to the Company's future outlook and anticipated events or results and, in some cases, can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "target", "potential", "continue" or other similar expressions concerning matters that are not historical facts. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects and opportunities. While the Company considers these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what we currently expect. These factors include risks associated with the oil and gas industry (including operational risks in exploration and development and uncertainties of estimates oil and gas potential properties), the risk of commodity price and foreign exchange rate fluctuations and the ability of Xcite to secure financing. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.