UK: Xcite Energy Announces 9/3b-6 Well Update

Xcite Energy Ltd announced that the 9/3b-6 well on the Bentley field is progressing on plan, on schedule and has reached target depth for the first part of the planned work programme, the pilot section of the well.

The pilot section confirmed 113ft oil column, some 40ft thicker than the 73ft prognosis, in a high quality Dornoch reservoir and confirmed the oil water contact at 3729ft total vertical depth (on prognosis). The oil column has 100% net to gross (compared to previous average of 88%). Management believes that this height of oil column confirms that an upside structure is present in the eastern half of the reservoir, significantly increasing the volume of oil in place.

The pilot section has provided valuable reservoir information for use in optimising the placing of the horizontal wellbore and for planning the first stage development.

The pilot section was extended to test the Jurassic play concept approximately 800ft deeper than the Bentley field Dornoch accumulation and encountered 15ft of Jurassic reservoir with oil shows.

The pilot section has now been cemented and abandoned, and work has commenced on the horizontal side track which is planned to flow test the Dornoch oil column. The completion and testing of the horizontal section is expected by the end of November.

The Bentley oil field is located on Block 9/3b (Licence 1078), approximately 160km east of the Shetland Isles, in which Xcite Energy holds 100% working interest.

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Source: Eni, October  25, 2010;