Xcite Energy Limited ("Xcite Energy" or the "Company") Letter of Intent for "Rowan Norway" N-Class Jack-up Rig
November 17 2010 - 8:46AM
Marketwired
This Announcement Is Not for Release, Publication or Distribution
in or Into the United States.
Xcite Energy (TSX-V: XEL) (LSE: XEL) (AIM: XEL) is pleased to
announce that its 100% subsidiary, Xcite Energy Resources Limited
("XER"), has entered into a binding letter of intent ("LOI") with
British American Offshore Limited ("BAOL"), part of Rowan
Companies, Inc. for the N-Class "Rowan Norway", a harsh
environment, deep water jack-up unit, designed and built for
simultaneous drilling and production, which is currently under
construction.
The LOI anticipates that XER and BAOL will enter into a
definitive agreement ("Agreement") for the rig by 15 December 2010,
following which the Rowan Norway is expected to be available to
commence the first stage production ("FSP") on the Bentley field in
the fourth quarter of 2011. The LOI provides for a termination fee
of US$2.5 million payable by XER in the event it does not enter
into the Agreement by this date. The initial commitment period of
240 days will facilitate the drilling of up to six wells on the
Bentley field as part of the anticipated three year FSP.
At the time of signing the Agreement, XER will be required to
demonstrate financial capability for the first 120 days of the
contract commitment in the amount of US$30 million. In addition,
XER will be required to demonstrate financial capability for the
second 120 days of the contract commitment in the amount of US$30
million by 31 January 2011. XER may reduce the initial commitment
period to 120 days, in which event it will be required to
demonstrate additional financial capability of US$3.6 million for
this 120 day period.
As noted in the Company's press release dated 8 November 2010,
"9/3b-6z Well Update", the testing of the horizontal section is
progressing on plan and on schedule, with the test expected to be
completed by the end of November.
Richard Smith, Xcite Energy Chief Executive
Officer commented:
"This is another significant event for the Company which,
following the anticipated successful completion of the current
9/3b-6 well test programme, would enable us to move forward and
plan the first stage production programme on the Bentley field.
This drilling unit has been designed with good capabilities and
flexibility in mind and we are pleased to be working with Rowan for
this vital phase of the Bentley development programme."
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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 Energy
to secure financing. Additional information identifying risks and
uncertainties are contained in the Company's annual information
form dated October 26, 2010 and in the annual Management's
Discussion and Analysis for Xcite Energy dated March 24, 2010 filed
with the Canadian securities regulatory authorities and available
at www.sedar.com. 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.
ENQUIRIES: Xcite Energy Limited Richard Smith
Chief Executive Officer Rupert Cole Chief Financial Officer +44 (0)
1330 826740 Arbuthnot Securities Limited (Nomad and Broker)
Antonio Bossi Director +44 (0)20 7012 2000 Pelham Bell
Pottinger Mark Antelme Director Henry Lerwill +44 (0) 20 7861
3232 Paradox Public Relations Jean-Francois Meilleur
Consultant +1 514 341 0408
Xcite Energy Limited (TSXV:XEL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Xcite Energy Limited (TSXV:XEL)
Historical Stock Chart
From Jul 2023 to Jul 2024