Xcite Energy Jumps on Higher Bentley Oil Field Reserves Estimate
Xcite Energy Ltd. (XEL), a North Sea oil explorer, jumped the most in seven months in London trading after raising its estimate for reserves in the Bentley field.
The shares gained as much as 14 percent to 124.50 pence, the steepest intraday gain since August last year. They were 7.8 percent higher at 117.50 pence as of 8:15 a.m. local time.
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 in a statement today.
Xcite, with a market capitalization of about 344 million pounds ($528 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.
“This represents one of the largest undeveloped fields in the U.K.,” Chief Executive Officer Rupert Cole said in a telephone interview. “It opens a lot of doors and we expect to have significant farm out interest.”
The company doesn’t expect to sell a large stake in the field, Cole said. 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 its second phase, the company said.
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