TIDMXEL
RNS Number : 0771P
Xcite Energy Limited
14 August 2014
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART
DIRECTLY OR INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO
DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR
REGULATIONS OF SUCH JURISDICTION
TSX-V, LSE-AIM: XEL
14 August 2014
Xcite Energy Limited
("Xcite Energy" or the "Company")
Results for the 3 and 6 Month Periods Ended 30 June 2014
Xcite Energy announces its results for the 3 and 6 month periods
ended 30 June 2014.
Highlights for the year to date
-- Memorandum of Understanding signed with Aibel AS, further
enhancing the industry service provider partnership for the
development of the Bentley field, which already includes AMEC Group
Ltd., Ove Arup & Partners Ltd. and Teekay Shipping Norway
AS.
-- Collaboration Agreement signed with Statoil (U.K.) Ltd. and
Shell U.K. Ltd., for the sharing of technical and operational
information to evaluate potential synergies and collaboration in
the development of the Bentley and Bressay oil fields.
-- US$ 140 million raised through the issue of senior secured
bonds and issue of new equity share capital, and repayment of the
US$ 80 million of unsecured loan notes.
-- Upgrade in 1P, 2P and 3P oil reserves for the Bentley field
to 203 MMstb, 257 MMstb and 317 MMstb, respectively, effective 31
December 2013 and based on an initial 35 year production
period.
-- Material Licence extension granted by the Department of
Energy and Climate Change for the Bentley field until 31 December
2016.
-- Profit for the 3 month period ended 30 June 2014 of GBP0.51 million.
-- Cash balance of GBP41.5 million as at 30 June 2014.
Rupert Cole, Chief Executive Officer of Xcite Energy,
commented:
"We have continued to make good progress towards our near term
objective of the submission of the field development plan, with
expansion of the development group, continuing engineering work and
constructive contract discussions. With the industry beginning to
recognise what can be achieved with an enhanced partnership model
and the collaboration initiatives noted from the recently published
Wood Review, I am very pleased that the efforts of the team are
translating into commercial agreements to develop the Bentley
field. With much to do in the coming months, we shall keep
stakeholders updated at each step of the way."
Outlook for the balance of 2014
Pre-FEED/assurance engineering, project planning and contract
negotiations with existing development partners are underway. The
Company continues its discussions with additional development
partners to complement the Bentley development group, including
drilling contractors and services companies as part of its rig
tender process and overall well strategy. Xcite Energy will shortly
be mobilising a survey vessel to undertake the pre-FEED
geotechnical site investigation for the Arup designed ACE
platform.
The benefits from working with its development partners are
becoming evident, as the development group is able to identify and
address the key design, engineering, execution and integration
issues that will affect the core development assets and the overall
development cost and schedule. In addition, there are potential
opportunities to realise purchasing and logistical synergies for
the benefit of the project as a whole.
The Company continues to have discussions with other potential
partners as part of its funding strategy, as set out in its full
year results published on 27 March 2014. The Company's aim remains
focused on reducing the front-end cash requirements of the project
by exploring the potential use of asset financing for the ACE
platform, leasing of certain key assets (such as the FSO and
drilling rig) and some financial participation by its existing
development partners. By reducing the initial funding requirement,
the Company intends to widen the scope of companies with whom it
can engage.
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 with its development partners.
The following tables summarise the Group's financial performance
in the 3 and 6 months ended 30 June 2014 and the comparatives for
the 3 and 6 months ended 30 June 2013.
6 months ended 3 months ended 6 months ended 3 months ended
30 June 30 June 30 June 30 June
------------------------------------- --------------- --------------- --------------- ---------------
Income Statement Information 2014 2014 2013 2013
------------------------------------- --------------- --------------- --------------- ---------------
GBPm GBPm GBPm GBPm
------------------------------------- --------------- --------------- --------------- ---------------
Net profit 0.47 0.51 8.3 10.0
------------------------------------- --------------- --------------- --------------- ---------------
Basic earnings per share in pence 0.16p 0.17p 2.85p 3.43p
------------------------------------- --------------- --------------- --------------- ---------------
Diluted earnings per share in pence 0.14p 0.15p 2.56p 3.07p
------------------------------------- --------------- --------------- --------------- ---------------
6 months ended 3 months ended 6 months ended 3 months ended
30 June 30 June 30 June 30 June
----------------------------------------- --------------- --------------- --------------- ---------------
Cash Flow Information 2014 2014 2013 2013
----------------------------------------- --------------- --------------- --------------- ---------------
GBPm GBPm GBPm GBPm
----------------------------------------- --------------- --------------- --------------- ---------------
Net cash flow from operations 9.8 10.8 13.5 14.8
----------------------------------------- --------------- --------------- --------------- ---------------
Net cash flow from investing activities (17.7) (14.2) (14.6) (10.4)
----------------------------------------- --------------- --------------- --------------- ---------------
Net cash flow from financing activities 27.5 27.5 0.4 -
----------------------------------------- --------------- --------------- --------------- ---------------
As at As at As at
30 June 31 December 30 June
--------------------------- --------- ------------- ---------
Balance Sheet Information 2014 2013 2013
--------------------------- --------- ------------- ---------
GBPm GBPm GBPm
--------------------------- --------- ------------- ---------
Total assets 301.9 269.5 265.4
--------------------------- --------- ------------- ---------
Cash and cash equivalents 41.5 21.9 24.9
--------------------------- --------- ------------- ---------
Current liabilities 1.0 49.0 46.9
--------------------------- --------- ------------- ---------
Long term liabilities 72.7 3.5 0.9
--------------------------- --------- ------------- ---------
Total net assets 228.2 217.0 217.7
--------------------------- --------- ------------- ---------
The Company's unaudited Financial Results for the 3 and 6 Month
Periods Ended 30 June 2014 can be found at the following link:
http://www.rns-pdf.londonstockexchange.com/rns/0771P_-2014-8-13.pdf
Forward-Looking Statements
Certain statements contained in this announcement constitute
forward-looking information within the meaning of securities laws.
Forward-looking information may relate to the Company's future
outlook and anticipated events or results and, in some cases, can
be identified by terminology such as "may", "will", "should",
"expect", "plan", "anticipate", "believe", "intend", "estimate",
"predict", "target", "potential", "continue" or other similar
expressions concerning matters that are not historical facts. These
statements are based on certain factors and assumptions including
expected growth, results of operations, performance and business
prospects and opportunities. While the Company considers these
assumptions to be reasonable based on information currently
available to us, they may prove to be incorrect. Forward-looking
information is also subject to certain factors, including risks and
uncertainties that could cause actual results to differ materially
from what we currently expect. These factors include risks
associated with the oil and gas industry (including operational
risks in exploration and development and uncertainties of estimates
oil and gas potential properties), the risk of commodity price and
foreign exchange rate fluctuations and the ability of Xcite Energy
to secure financing. Additional information identifying risks and
uncertainties are contained in the annual Management's Discussion
and Analysis for Xcite Energy dated 26 March 2014 filed with the
Canadian
securities regulatory authorities and available at
www.sedar.com. The Company disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result
of new information, future events or otherwise, except as required
under applicable securities regulations.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
ENQUIRIES: +44 (0) 1483 549
Xcite Energy Limited 063
Rupert Cole / Andrew Fairclough
+44 (0) 203 100
Liberum (Joint Broker and Nominated Adviser) 2222
Clayton Bush / Tim Graham
+44 (0) 207 425
Morgan Stanley (Joint Broker) 8000
Andrew Foster
+44 (0) 207 861
Bell Pottinger 3232
Mark Antelme / Henry Lerwill
This information is provided by RNS
The company news service from the London Stock Exchange
END
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