Richard Smith, the chief executive of North Sea heavy oil exploration and production group Xcite Energy (LON:XEL) has decided to retire from the company. The news comes as Xcite announced that it had reached a major objective during flow test operations on the Bentley field.
Smith is set to leave his role as CEO and director and is being replaced with Rupert Cole, who was previously finance director. Stephen Kew, a founding member of Xcite and currently exploration and development director, will formally take on the role of chief operating officer. Jon Dale has been appointed as finance director of Xcite Energy Resources, the company’s 100% owned operating subsidiary.
Meanwhile, following planned equipment maintenance, offtake procedure testing and further optimisation of process equipment, Xcite’s 9/03b-7 well has been producing at a stabilised rate of approximately 3,200 barrels per day with no associated basic sediments or water. This is viewed as being well within the operational performance of the reservoir.
Bentley crude oil collected so far in the Scott Spirit tanker is in excess of 47,000 barrels of dry oil and thus achieves another major technical objective of the flow test.
Xcite said that early data gathered from down hole pressure and temperature responses demonstrated that the underlying aquifer support is strong and consistent, which is a good indicator for longer term productivity of the reservoir.
The pre-production flow test will be continued in order to determine the reservoir fluid behaviour and to gather data to assist in the optimisation of ultimate life-of-field performance.
Steve Kew commented: “With the Phase 1A work programme thus far having once again demonstrated the expertise and delivery capabilities of the Xcite team, we look forward to completing the programme and moving forward with the important next stages in the development of the Bentley field.”
