Xcite Energy Jumps After Upgrading Bentley Oilfield Reserves

Xcite Energy Ltd., a North Sea oil explorer, jumped the most in five weeks in London trading after raising its estimate for reserves at the Bentley field.

The shares advanced 8.3 percent to close at 118 pence, the biggest one-day gain since March 1. Trading volumes were more than triple the three-month daily average.

The estimate for oil reserves in place rose to 909 million barrels from the 550 million barrels reported in February 2012 after additional tests, the company said today in a statement.

Xcite, with a market value of about 344 million pounds ($525 million), will now start the process of selling a stake in the field. Bringing the resource to development will cost $700 million and take about two years.

Bentley is one of the largest undeveloped fields off the U.K., according to Chief Executive Officer Rupert Cole, who said it “opens a lot of doors and we expect to have significant farm-out interest.” The company doesn’t plan to sell a large stake in the deposit, he said by telephone.

The Bentley field will be able to produce about 45,000 barrels a day in its first phase and 57,000 barrels a day in the second, the company said.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE