Xcite delivers ‘successful’ tests on Bentley oil well

By PETER RANSCOMBE
Published on 20/09/2012 09:35

XCITE Energy, the Aberdeen-based driller developing the giant Bentley field in the North Sea, has completed initial tests on the oil well, sparking talk of a partner coming in to help develop the project.

The results from the tests exceeded expectations, the company said, with the work giving Xcite a “significantly improved understanding of oil, gas and water movements” in the well.

Bentley was discovered in 1977 and Xcite was set up in 2003 to develop the field. The company floated on the Alternative Investment Market in 2007.

Rupert Cole, Xcite’s chief executive , said: “We are extremely pleased with the outcome of the phase 1A work programme, which has exceeded our expectations. We have gathered very substantial quantities of high-quality data, which has materially de-risked the project.”

Sam Wahab, an analyst at Seymour Pierce, said: “Whilst today’s announcement is largely priced-in given Xcite’s ongoing operational news flow to date, we expect investors to react positively to further confirmation of the successful programme. The shares have rallied in recent weeks as the market anticipates a potential farm-in partner on the back of encouraging flow test data. Today’s announcement highlights the attractiveness of the Bentley field.”

Accendo Markets head of research Mike van Dulken added: “The shares are likely weak on markets having already priced-in a positive conclusion. The shares had already rallied by over 75 per cent from mid-August, with a spike on 29 August amid speculation Norwegian giant Statoil might be circling.”