Xcite Energy Ltd. (XEL.LN), a developer of heavy oil assets in the U.K. North Sea, said Thursday Xcite Energy Resources Ltd., its 100% subsidiary and the owner of the Bentley field, has concluded an agreement with BP Oil International Ltd., or BPOI, a wholly owned subsidiary of BP PLC (BP), where BPOI will provide the offtake services to market and sell the Bentley crude oil in return for an incentive-based fee per barrel.

MAIN FACTS:

-The offtake fee is directly related to the realized price achieved by BPOI for the Bentley crude oil in relation to the prevailing Brent crude price, incentivising BPOI to maximise the price per barrel achieved for XER by minimizing the discount to Brent crude.

-In addition, BPOI have undertaken that, subject to certain conditions, when Xcite Energy move to full field development, an associated BP company will procure $20 million of financing from a commercial bank for Xcite Energy with credit support from BP.

-BP's financing is for the purpose of assisting with the full field development of the Bentley field, the terms of which will be negotiated in due course.

-By London Bureau, Dow Jones Newswires; Contact Ian Walker; +44 (0)20 7842 9296; ian.walker@dowjones.com
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