[EUROPE] Xcite Energy reports StatoilHydro well data trade

Xcite Energy Limited has concluded an agreement to trade key well data with Statoil (U.K.) Limited, the UK arm of StatoilHydro, the Norwegian oil major with a significant international position in heavy oil and responsible for around half of the proven, but not yet developed, heavy oil deposits on the UK continental shelf. This Agreement follows from ongoing dialogue with StatoilHydro that commenced in 2007 and is another step forward in the progression of the heavy oil sector in the UK North Sea.

The Agreement allows for the pre-exchange of data from the 9/3b-5 appraisal well on the Bentley field, successfully drilled by Xcite Energy, which will be reciprocated with the data from the 3/28a-F(6) appraisal well on the StatoilHydro operated Bressay field, which is anticipated to be completed by mid November 2008. The Bressay field is located principally in Blocks 3/27 and 3/28, adjacent and to the north-west of Block 9/3b.

Richard Smith, Chief Executive Officer of Xcite Energy, commented, "This agreement to trade well data is an important step forward towards a wider data sharing environment for heavy oil in the UK North Sea, which in turn will potentially accelerate development of the heavy oil sector in the region. It is also another step forward for Xcite Energy as we focus on maximising the value of the Company's resources and move towards a development solution for the Bentley field, one of the largest undeveloped heavy oil fields in the North Sea."

Source: Scandinavian Oil & Gas