Xcite Energy said this morning in an RNS that it hopes to complete an updated reserves report by the end of March, versus the late February or early March timing expected moving the shares down 5 percent at the open.
Xcite said the delay was warranted because it was better to “take the time necessary to maximise the value”. The reserves report will be focused on the first stage production of Bentley, though it will also provide a further update to the resources on a field-wide basis and will allow it to update the Competent Persons Report from 2009 which had indicate reserves of 166 million barrels (109-235 mm barrels).
TRACS (AGR Group) is assessing the Bentley Field, using data from the well 9/3b-6 test conducted in December 2010, which flowed above expectations at 2900 barrels a day despite weather issues and the heavy oil characteristics. The well test also confirmed an oil column which was larger than anticipated, making it likely the reserves report will be good and greater than 250 million barrels.
“The success of the Bentley 9/3b-6 well test requires Xcite to re-assess all material aspects of the reservoir model as the starting point for the input to the reserves report,”
“The information and data available from the well is still in the process of being received and collated and the company intends to use as much of this material as possible for input to the reserves report.”
“The company expects the completion of the reserves report to be around the end of March 2011, but will take the time necessary to maximise the value of the report,”
Looks like a case of waiting a month and trading on any new dips. The prospects for Xcite are superb!
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