News Column

Xcite Energy Net Profit Crumbles; Bentley Field Plans Progress

August 14, 2014

Anthony Tshibangu

LONDON (Alliance News) - Oil appraisal and development company Xcite Energy Ltd Thursday said net profit in the six months to June 30 fell to GBP47,000, from GBP8.3 million a year earlier.

Xcite's strategy is to develop the heavy oil discoveries in the Bentley field in the UK northern North Sea and its adjacent blocks, explore and appraise the identified prospects in its other adjacent blocks, to pursue potential acquisitions, and to participate in future UK offshore licensing rounds to become a significant independent heavy oil producer in the North Sea.

Net profit for the three months ended June 30 fell to GBP51,000 from GBP10.0 million a year earlier.

Chief Executive Rupert Cole said the company continues to make good progress towards its near term objective of the submitting a field development plan for its Bentley field, "with expansion of the development group, continuing engineering work and constructive contract discussions."

During the period, the company raised USD140 million through the placing of senior secured bonds and the issuance of new shares. It plans to use the money to refinance USD80 million of 12.5% unsecured loan notes due on December 25, and to fund the Bentley field development work programme through this year, as well as for general corporate purposes.

Xcite said Thursday that the recent bond financing and the repayment of the unsecured loan notes has provided a stable financial footing during a key period for the company as it continues to bring together a technically and financially compliant field development plan for the Bentley field in the North Sea with its development partners.

Looking ahead, the company said discussions continue with additional development partners to complement its Bentley development group, including drilling contractors and services companies as part of its rig tender process and overall well strategy.

Xcite Energy shares were quoted up 3.8% at 65.14 pence Thursday morning.

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Source: Alliance News

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