TIDMXEL
RNS Number : 5411O
Xcite Energy Limited
29 May 2015
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
29 May 2015
Xcite Energy Limited
("Xcite Energy" or the "Company")
First Quarter Results for the 3 Month Period Ended 31 March
2015
Xcite Energy announces its first quarter results for the 3 month
period ended 31 March 2015.
Highlights for the year to date
-- Increase in 1P, 2P and 3P heavy oil reserves for the Bentley
field to 234 MMstb, 265 MMstb and 296 MMstb, respectively,
effective 31 December 2014 and based on an expected initial 35 year
production period.
-- Confirmed NPV10 (after tax) value of reserves for the Bentley
field to be approximately US$1.9 billion, US$2.3 billion and US$2.6
billion on a 1P, 2P and 3P basis, respectively, effective 31
December 2014.
-- Change in functional and presentation currency for the
Company and its wholly owned subsidiary (together with the Company,
the "Group") to US Dollars, to reflect the primary economic
environment in which the Group operates. All prior period
comparatives have been restated accordingly.
-- Net loss in the current period of US$0.45 million.
-- Cash balance of US$41.06 million as at 31 March 2015.
Rupert Cole, Chief Executive Officer of Xcite Energy,
commented:
"The reserves report is significant for us, as it incorporates
much of the work we have completed over the past year with the
development group, providing external validation to the recovery of
the field, the development plan and execution strategy. Full field
unescalated costs are expected to be approximately US$35 per barrel
have been underpinned by third party quotes and estimates in order
to increase the visibility of the robust economics of this
development plan for the Bentley project. We remain focused on
developing the funding required to crystallise value from this
asset."
Overview of Results
On 30 April 2015, the Group announced the results of an updated
Reserves and Resources Assessment Report ("RAR"), prepared by AGR
TRACS International Limited. This RAR, with an effective date of 31
December 2014, confirmed 2P Reserves for the Bentley field of 265
million stock tank barrels ("MMstb"), an increase of 8 MMstb since
the previous RAR dated 25 February 2014. Additionally, the
after-tax net present value of the Bentley field cash flows
(discounted at 10%) was confirmed to be approximately US$2.3
billion. A further 21 MMstb of P50 Contingent Resources were
assigned to the Bentley field, representing the additional economic
production that could be achieved after an expected initial 35 year
facilities life cut-off had been applied to the development
plan.
The Group has focused on creating an efficient, cost-effective
and deliverable development plan, supported by a clearly defined
execution strategy with an externally validated cost base. In
carrying out this work, the Group has successfully completed a
significant number of technical, engineering, optimisation and
value assurance programmes in conjunction with the Bentley
development group. This has incorporated advanced reservoir
modelling to provide more subsurface certainty and has delivered
improved functional and cost definition for the project. This is
part of the strategy to demonstrate the economic viability of the
Bentley project and the Group remains focused on developing its
commercial and funding discussions.
The following tables summarise the Group's financial performance
in the 3 months ended 31 March 2015 and the restated US Dollar
comparatives for the 3 months ended 31 March 2014.
3 months ended 3 months ended
31 March 31 March
--------------------------------------------- --------------- ---------------
Income Statement Information 2015 2014
--------------------------------------------- --------------- ---------------
US$m US$m
--------------------------------------------- --------------- ---------------
Net loss (0.5) (0.1)
--------------------------------------------- --------------- ---------------
Loss per share (basic and diluted) in cents (0.15) cents (0.02) cents
--------------------------------------------- --------------- ---------------
3 months ended 3 months ended
31 March 31 March
----------------------------------------- --------------- ---------------
Cash Flow Information 2015 2014
----------------------------------------- --------------- ---------------
US$m US$m
----------------------------------------- --------------- ---------------
Net cash flow from operations 0.6 (3.2)
----------------------------------------- --------------- ---------------
Net cash flow from investing activities (9.9) (5.9)
----------------------------------------- --------------- ---------------
Net cash flow from financing activities - -
----------------------------------------- --------------- ---------------
As at As at As at
31 March 31 December 31 March
--------------------------- ---------- ------------- ----------
Balance Sheet Information 2015 2014 2014
--------------------------- ---------- ------------- ----------
US$m US$m US$m
--------------------------- ---------- ------------- ----------
Total assets 482.6 482.2 447.3
--------------------------- ---------- ------------- ----------
Cash and cash equivalents 41.1 50.4 28.9
--------------------------- ---------- ------------- ----------
Current liabilities 4.5 3.5 80.5
--------------------------- ---------- ------------- ----------
Non-current liabilities 127.6 127.8 5.8
--------------------------- ---------- ------------- ----------
Total net assets 350.5 350.9 361.0
--------------------------- ---------- ------------- ----------
The Company's unaudited Financial Results for the 3 Month Period
Ended 31 March 2015 can be found at the following link:
http://www.rns-pdf.londonstockexchange.com/rns/5411O_-2015-5-28.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 24 March 2015 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.
Statements relating to "resources" and "reserves" are deemed to
be forward-looking statements or information, as they involve the
implied assessment, based on certain estimates and assumptions,
that the resources and reserves described can be profitable in the
future. There are numerous uncertainties inherent in estimating
quantities of proved reserves, including many factors beyond the
control of the Company. The reserve data included herein represents
estimates only. In general, estimates of economically recoverable
oil reserves and the future net cash flows therefrom are based upon
a number of variable factors and assumptions, such as historical
production from the properties, the assumed effects of regulation
by governmental agencies and future operating costs, all of which
may vary considerably from actual results. All such estimates are
to some degree speculative and classifications of reserves are only
attempts to define the degree of speculation involved. For those
reasons, estimates of the economically recoverable oil reserves
attributable to any particular group of properties and
classification of such reserves based on risk of recovery and
estimates of future net revenues expected therefrom, prepared by
different engineers or by the same engineers at
different times, may vary substantially. The actual production,
revenues, taxes and development and operating expenditures of the
Company with respect to these reserves will vary from such
estimates, and such variances could be material.
The Company has used forecast prices and costs in calculating
reserve quantities included herein. Actual future net cash flows
also will be affected by other factors such as actual production
levels, supply and demand for oil and natural gas, curtailments or
increases in consumption by oil and natural gas purchasers, changes
in governmental regulation or taxation and the impact of inflation
on costs. The estimated future net revenue set out herein does not
necessarily represent the fair market value of the Company's
reserves.
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
Xcite Energy Limited 549 063
Rupert Cole / Andrew
Fairclough
+44 (0) 203
Liberum (Joint Broker and Nomad) 100 2222
Clayton Bush
Morgan Stanley (Joint +44 (0) 207
Broker) 425 8000
Andrew Foster
+44 (0) 203
Bell Pottinger 772 2500
Henry Lerwill
This information is provided by RNS
The company news service from the London Stock Exchange
END
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