Xcite Energy Secures Loan to Fund Bentley Field Development (UK)

Xcite Energy Secures Loan to Fund Bentley Field Development (UK)

Xcite Energy yesterday closed on the issue of US$10 million of unsecured Loan Notes to a fund managed by West Face Capital Inc.

The funds will be used to provide contingency funding during the important Phase 1A work programme on the Bentley field.

The Loan Notes have an initial term of 236 days and, subject to West Face approval, may be extended by XEL for a further 360 days. The Loan Notes bear interest at 14% per year.

To remind, the company in April this year issued US$50 million of unsecured Loan Notes West Face on the similar terms.

Bentley

Xcite Energy’s Bentley field is one of the largest undeveloped fields in the North Sea, containing some 550 MMstb in-place of 10°-12° API heavy oil. Following a highly successful flow test of the 9/3b-6Z well in December 2010, Xcite Energy are moving the field towards development. Further drilling and testing is being undertaken in 2012 which will leave well infrastructure in place for the development. It will also enable finalising of the field development plan for approval later in the year.

Xcite Energy holds and operates 100% of the Bentley field located in Block 9/3b (Licence P1078). The Licence was granted to XER under a Promote Licence in 2003 and converted to a Traditional Licence in 2005.

The Bentley field is located on the East Shetland Platform in the UK Northern North Sea, 8 km southeast of the Bressay Field (currently operated by Statoil), 15 km east of the Kraken Field (operator: Enquest) and 20 km north-northeast of the Bruce Field (operator: BP)

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Offshore Energy Today Staff, August 8, 2012

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