UK-based heavy oil explorer Xcite Energy says it is hopeful it could submit a fully-funded first phase development plan for its Bentley heavy oil field by the end of 2016.
The firm's hopes have been raised after being given an extension to its license containing the Bentley field through to June 2017.
Xcite hopes that the extension will help it secure the financing needed to gain approval for the Bentley field development plan as well as repay outstanding senior secured bonds, due for repayment by 30 June this year.
Xcite says it has received "indicative proposals" for development funding, subject to agreement of commercial structuring and finalization of due diligence, and is currently in detailed discussions to progress these proposals.
If successful, this could enable a fully funded first phase development plan to be submitted to the OGA in 2016, says Xcite.
The field, and company, have been on a roller coaster ride, since proving the potential to develop the viscous oil from the field, originally discovered in 1977, through an appraisal program and an extended well test, to submitting the first development plan.
The field is in Block 9/3b and is one of the largest undeveloped fields in the North Sea, containing some 881 MMstb, according to Xcite.
The firm says it has nearly completed a cost review of the development plan, which includes revised quotes from contractors and suppliers of material services, equipment and drilling program.
This will be incorporated into the firm's next reserves report, due to be completed during Q1 2016. As a result of this cost review, Xcite expects development costs to be materially reduced to about $30/bbl.
Rupert Cole, Xcite Energy CEO, commented: "We are continuing to make progress and we remain focused on delivering a funded first phase field development plan, including repayment of the outstanding bonds. We still have a lot of work to do, but our objectives of reducing execution risk, working collaboratively and developing a fit-for-purpose, economic and efficient development concept has been critical to generate the support we need for our financing process."