Welcome!

News Feed Item

Xcite Energy Limited: Statement of Reserves Data and Other Oil and Gas Information (Form 51-101F1)

Not for Release, Publication or Distribution in Whole or in Part Directly or Indirectly in, Into or From Any Jurisdiction Where to Do So Would Constitute a Violation of the Relevant Laws or Regulations of Such Jurisdiction

ABERDEENSHIRE, UNITED KINGDOM -- (Marketwired) -- 02/26/14 -- Xcite Energy Limited ("Xcite Energy" or the "Company") (TSX VENTURE: XEL) (LSE: XEL) (AIM: XEL)

Xcite Energy announces that it has filed its annual Statement of Reserves Data and other Oil and Gas Information (Form 51-101F1) under National Instrument 51-101 -- Standards of Disclosure for Oil and Gas Activities -- and in accordance with the Canadian Oil and Gas Evaluation Handbook, with an effective date as at 31 December 2013.

AGR TRACS International Limited ("TRACS"), an independent, qualified reserves auditor and a wholly owned subsidiary of AGR Group (Holdings) Limited, has prepared a Reserves Assessment Report ("RAR") dated 25 February 2014, in which it has evaluated all of the Company's oil and natural gas reserves in its UKCS North Sea blocks.

The Form 51-101F1 is an annual statement required by Canadian regulations to be filed by the Company, which sets out its interests in oil and gas reserves, provides key data with respect to those interests and identifies changes, if any, which have occurred since the previous annual filing. The information contained in the Form 51-101F1 is taken directly from the RAR.

Summary of the NI 51-101

  • Mean PIIP for the Bentley field of 909 MMstb.
  • 1P, 2P and 3P oil reserves for the Bentley field of 203 MMstb, 257 MMstb and 317 MMstb, respectively, based on an initial 35 year production period.
  • 1P, 2P and 3P natural gas reserves for the Bentley field of 26 bcf, 32 bcf and 41 bcf, respectively.
  • NPV10 (after tax) value of oil reserves for the Bentley field of approximately $1.5 billion, $2.1 billion and $2.7 billion on a 1P, 2P and 3P basis, respectively.
  • 48 MMstb of P50 Contingent Resources assigned to the Bentley field for recoverable volumes beyond the initial 35 years production period.
  • Aggregate, unrisked mean Prospective Resources assigned of approximately 96 MMstb, relating to prospects in the Greater Bentley area.

See "Cautionary Language" below for a general explanation of the method and assumptions used in the above calculations.

Key updated assumptions

  • Approximate 2.5% increase in the number of recoverable barrels of crude oil, taking account of a reduction in production facilities constraints.

  • Approximate 2% reduction in the forward looking initial Brent oil price from approximately $94 equivalent per barrel to approximately $92 equivalent per barrel, to reflect the latest available McDaniel forecast with effect from October 1, 2013 as published at www.mcdan.com.

  • Approximate 3.5% increase in the underlying cost assumptions used in the economic forecasts to reflect the current industry and market conditions.

The Company continues to work on improvements to the development plan, and is conducting work on reservoir modelling and reservoir drainage mechanisms to facilitate optimisation and enhanced oil recovery modelling. This work has not yet been factored into the reserves assessment.

The Form 51-101F1 will be available on SEDAR at www.sedar.com

The Company's oil and gas reserves are held through its wholly owned subsidiary, Xcite Energy Resources Limited ("XER"), comprising 100% working interests in Blocks 9/3b, 9/3c, 9/3d, 9/4a, 9/8b and 9/9h which contain the Bentley field ("Bentley" or the "Field") and adjoining assets (together the "Greater Bentley area").

In accordance with the AIM Rules, the information in this release has been reviewed and signed off by Tom Gunningham (C.Eng. MEI.), an associate at TRACS, who is a Chartered Petroleum Engineer, member of the Energy Institute and an Independent Qualified Reserves Auditor compliant with COGEH requirements.

Cautionary Language

Liberum Capital Limited, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for Xcite Energy and for no one else in connection with the subject matter of this announcement and will not be responsible to anyone other than Xcite Energy for providing the protections afforded to its clients or for providing advice in connection with the subject matter of this announcement.

Morgan Stanley, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for Xcite Energy and for no one else in connection with the subject matter of this announcement and will not be responsible to anyone other than Xcite Energy for providing the protections afforded to its clients or for providing advice in connection with the subject matter of this announcement.

The calculation of the NPV10 (after tax) for the Field disclosed above takes into account the following: (a) UK Corporation Tax is charged at the rate of 30% on net taxable income; (b) UK Supplementary Charge ("SC") is charged at the rate of 32% on net taxable income; and (c) heavy oil allowances of up to £ 800 million have been applied to offset the SC to the extent possible.

Glossary

"1P" means proved reserves.

"2P" means proved plus probable reserves.

"3P" means proved plus probable plus possible reserves. Possible reserves are those additional reserves that are less certain to be recovered than probable reserves and there is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.

"bcf" means billion cubic feet of gas.

"Contingent Resources" means those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters, or a lack of markets. There is no certainty that it will be commercially viable to produce any portion of the Contingent Resources.

"FPD" means First Phase Development of the Field.

"MMstb" means millions stock tank barrels.

"NPV10" means net present value in money of the day using a 10% forward discount rate, which values do not represent fair market value.

"PIIP" means petroleum initially in place.

"Prospective Resources" means those quantities of petroleum which are estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. There is no certainty that any portion of the Prospective Resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the Prospective Resources.

"SPD" means Second Phase Development of the Field, or Phase 2.

"stb/d" means stock tank barrels per day.

"$" means United States dollars.

"$MM" means millions of United States dollars.

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 is currently expected. These factors include risks associated with the oil and gas industry (including operational risks in exploration and development and uncertainties of estimates in 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 annual Management's Discussion and Analysis for Xcite Energy dated 25 March 2013 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.

Statements relating to "reserves" are deemed to be forward-looking statements or information, as they involve the implied assessment, based on certain estimates and assumptions, that the resources and reserves described can be profitable in the future. There are numerous uncertainties inherent in estimating quantities of proved reserves, including many factors beyond the control of the Company. The reserve data included herein represents estimates only. In general, estimates of economically recoverable oil reserves and the future net cash flows therefrom are based upon a number of variable factors and assumptions, such as historical production from the properties, the assumed effects of regulation by governmental agencies and future operating costs, all of which may vary considerably from actual results. All such estimates are to some degree speculative and classifications of reserves are only attempts to define the degree of speculation involved. For those reasons, estimates of the economically recoverable oil reserves attributable to any particular group of properties and classification of such reserves based on risk of recovery and estimates of future net revenues expected therefrom, prepared by different engineers or by the same engineers at different times, may vary substantially. The actual production, revenues, taxes and development and operating expenditures of the Company with respect to these reserves will vary from such estimates, and such variances could be material.

Consistent with the securities disclosure legislation and policies of Canada, the Company has used forecast prices and costs in calculating reserve quantities included herein. Actual future net cash flows also will be affected by other factors such as actual production levels, supply and demand for oil and natural gas, curtailments or increases in consumption by oil and natural gas purchasers, changes in governmental regulation or taxation and the impact of inflation on costs. The estimated future net revenue set out herein does not necessarily represent the fair market value of the Company's reserves.

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.

ENQUIRIES:

Xcite Energy Limited
Rupert Cole / Andrew Fairclough
+44 (0) 1483 549 063

Liberum (Joint Broker and Nominated Adviser)
Clayton Bush / Tim Graham
+44 (0) 203 100 2222

Morgan Stanley (Joint Broker)
Andrew Foster
+44 (0) 207 425 8000

Bell Pottinger
Mark Antelme / Henry Lerwill
+44 (0) 207 861 3232

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Struggling to keep up with increasing application demand? Learn how Platform as a Service (PaaS) can streamline application development processes and make resource management easy.
New Relic, Inc. has announced a set of new features across the New Relic Software Analytics Cloud that offer IT operations teams increased visibility, and the ability to diagnose and resolve performance problems quickly. The new features further IT operations teams’ ability to leverage data and analytics, as well as drive collaboration and a common, shared understanding between teams. Software teams are under pressure to resolve performance issues quickly and improve availability, as the comple...
The proper isolation of resources is essential for multi-tenant environments. The traditional approach to isolate resources is, however, rather heavyweight. In his session at 18th Cloud Expo, Igor Drobiazko, co-founder of elastic.io, will draw upon their own experience with operating a Docker container-based infrastructure on a large scale and present a lightweight solution for resource isolation using microservices. He will also discuss the implementation of microservices in data and applicat...
Join IBM June 8 at 18th Cloud Expo at the Javits Center in New York City, NY, and learn how to innovate like a startup and scale for the enterprise. You need to deliver quality applications faster and cheaper, attract and retain customers with an engaging experience across devices, and seamlessly integrate your enterprise systems. And you can't take 12 months to do it.
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, will discuss how research has demonstrated the value of Machine Learning in delivering next generation analytics to im...
This is not a small hotel event. It is also not a big vendor party where politicians and entertainers are more important than real content. This is Cloud Expo, the world's longest-running conference and exhibition focused on Cloud Computing and all that it entails. If you want serious presentations and valuable insight about Cloud Computing for three straight days, then register now for Cloud Expo.
As you respond to increasing requests for new analytics, you need fast and flexible technology in your arsenal so that you can deploy the right workload to the right platform for the need at hand. Do you need self-service and fast time to value? Do you have data and application control and privacy needs, along with strict SLAs to meet? IBM dashDB™ is data warehouse technology powered by in-memory computing and in-database analytics that are designed for fast results, scalability and more.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
IoT device adoption is growing at staggering rates, and with it comes opportunity for developers to meet consumer demand for an ever more connected world. Wireless communication is the key part of the encompassing components of any IoT device. Wireless connectivity enhances the device utility at the expense of ease of use and deployment challenges. Since connectivity is fundamental for IoT device development, engineers must understand how to overcome the hurdles inherent in incorporating multipl...
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, will explain how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.