Join our community of smart investors

Xcite gets drilling

Xcite Energy has started drilling its Bentley heavy oil field in the North Sea
March 20, 2012

Xcite Energy has started drilling a well that will test how much oil can be produced from the Bentley heavy oil field in the North Sea and which should also provide its first production by mid-year.

IC TIP: Buy at 127p

Following receipt of a 'letter of comfort' from the UK's Department of Energy and Climate Change supporting the phased development plan, the first stage will involve drilling two lateral wells leading from a single well. The wells will be connected by pipeline to a nearby shuttle tanker and the resultant flow will constitute the company's first production. The energy department's comfort letter has also allowed proven and probable reserves to be upgraded to 116m barrels.