Fugro Well Services will undertake this well on a risked basis, such that it will bear a material percentage of the cost of the well in return for a commitment to be engaged to carry out future work on behalf of XER if the well is successful. It is intended to spud this well at the end of first quarter of 2010, subject to regulatory approval, the availability of funding and finalization of contract terms with Fugro Well Services.
In signing this agreement, Fugro Well Services has joined the Bentley Alliance, the management and operational structure created by XER as the vehicle to direct the Bentley field to full field development. The harnessing of the technical expertise, project management skills and financial strength of major contractors and other industry partners will greatly assist XER in taking the Bentley field into production. XER intends to widen the Bentley Alliance to other industry partners in due course as the field is moved towards development.
Richard Smith, chief executive of Xcite Energy, commented: “I am very pleased with the outcome of our farm-in process, which has resulted in the formation of the Bentley Alliance and we welcome Fugro Well Services as the first alliance partner to assist in the drilling and testing of the first production well on Bentley. This represents a major step forward for Xcite Energy and creates great momentum as we move towards oil production from Bentley.”
