Xcite Energy making progresss in North Sea

Drilling on its Bentley Field in the North Sea is going well for AIM-listed oil and gas firm Xcite Energy.

The group reported that its 9/3b-7z well on the Bentley Field has reached target depth of 9,646 feet (ft) measured depth and a reservoir section in excess of 2,000 ft has been drilled with 100% net pay.

The top reservoir, at 3,609 ft true vertical depth, is higher than previously encountered in any part of the field to date, giving an oil column depth of around 121 ft.

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Almost all of the well-bore was placed within the target range of 5-12 ft of the roof of the reservoir.

Further planned operations will now take place, including commissioning of the processing equipment, which will now be undertaken prior to the production test commencing.

The company also announced that it has drawn down on its equity line agreement with Esousa Holdings at a price of 87p per share, resulting in the issue of just over 2.58m shares of no par value in the capital of the company to Esousa. The new shares represent just over 1% of the enlarged share capital of the company.

The funding, totalling £2.29m, will be used as future working capital for the company and to progress towards first oil from the Bentley field.

The share price rose 4.12% to 88.5p by 10:02.

NR