Xcite Energy, the heavy oil and UK North Sea-focused company, said yesterday it was planning for the next phase in development of the Bentley oil field in block 9/3b south-east of Shetland.
Chief executive Richard Smith said: “The progress we have made during 2008 and the early part of 2009 has been outstanding.
“Taking a 30-year-old oil discovery and clearly demonstrating its commercial potential and value by significant advances in technological understanding has been a landmark for Xcite Energy.
“Bentley remains one of the largest proven but undeveloped fields in the North Sea and our challenge now is to move forward with the work programme as soon as the currently unfavourable market conditions allow.”
Xcite, which is listed in London and Toronto and has its operational headquarters at Banchory, said earlier that likely reserves in its 100%-owned Bentley field had been upgraded significantly, with an independent assessment confirming that the probability of commercial success with the field had been increased from 50% to 70%.
It said the volume of recoverable resources had almost doubled to 72million barrels for the low case and 122million barrels for the base case, and further potential upside had been identified.
Xcite has also noted that Norwegian oil major Statoil, as operator of the heavy-oil Bressay field – just 3.7 miles away – has announced its intention to develop the field. Bressay is said to have similar crude oil and geological properties to Bentley.