Xcite Energy spuds well in the UK North Sea

Xcite Energy, a heavy oil company focused on the development of discovered resources in the UK North Sea, says that the 9/3b-5 appraisal well on the Bentley field has now spudded. The Company anticipates reaching its target depth in the second week of January, and expects testing to be completed before the end of January.

The Bentley heavy oil discovery is located on Block 9/3b, in which Xcite Energy holds a 100% interest, 160km east of the Shetland Isles and covering an area of approximately 200 km2. Bentley has been drilled by three of the four wells on Block 9/3b, being wells 9/3-1 (Amoco, 1977), 9/3-2A (Conoco, 1983) and 9/3-4 (Conoco, 1986).

RPS Energy Canada Ltd. has assigned best estimate contingent and prospective resources of 109 million barrels of oil (”mmbbls”) and P50 oil-in-place volumes of 592 mmbbls for Block 9/3b, as more fully described in the Company’s admission document published on 7 November 2007.