Xcite Energy Signs MoU With Baker Hughes; Stock Rises

(RTTNews) - Xcite Energy Ltd.'s (XEL.L, XEL.V) shares increased around 3 percent in London trading after the company announced Monday that its unit Xcite Energy Resources plc, has entered into a Memorandum of Understanding or MOU with Oilfield services provider Baker Hughes Inc. (BHI).

The MoU sets out the principles for the provision of oil field services for the Bentley field and which are likely to include the supply of drilling and completion services, well engineering, electronic submersible pumps and reservoir engineering.

The company said Baker Hughes will work with all the key stakeholders in a collaborative manner to develop innovative, field specific technical and commercial oil field services for Bentley, which maximise the economic recovery from the field and the economic return for all stakeholders.

Xcite Energy CEO Rupert Cole said, "The provision of these key oil field services is an important part of the successful delivery of any project and we believe Baker Hughes has the necessary skills, expertise and track record to support our development group. We continue to make good progress with the planned assurance engineering programme and development partner commercial negotiations and remain focused on delivering a robust and compliant field development plan for this valuable asset."

In London, Xcite Energy shares were gaining 3.30 percent, and trading at 42.87 pence.