Bentley field’s oil flow tests Xcite analysts

By PETER RANSCOMBE
Published on 20/07/2012 00:00

ANALYSTS yesterday hailed “very positive” results from a flow test being conducted on Aberdeen-based Xcite Energy’s well in the Bentley field in the North Sea.

The Aim-quoted firm said oil was flowing at a rate of 2,900 barrels a day from the well, matching the result obtained during the December 2010 flow test from a previous Bentley well. Some 10,000 barrels have been collected so far.

Dougie Youngson, an analyst at Seymour Pierce, said: “This is a very positive result for the company. The goal of the test is to show that the reservoir can produce at commercial rates for prolonged periods. The announcement should provide some encouragement that this is the case. We therefore expect the share price to strengthen.”

News of the flow test result came as Xcite completed the second stage of a three-step share placement with Global Resource Funding Partners, which will generate a cash injection of £8.3 million for the development of the Bentley field.