Welcome!

News Feed Item

Xcite Energy Limited Announces Results for 3 and 6 Month Periods Ended 30 June 2014

ABERDEENSHIRE, UNITED KINGDOM -- (Marketwired) -- 08/14/14 -- Xcite Energy Ltd (TSX VENTURE: XEL) (LSE: XEL)

TSX-V: XEL; LSE: XEL

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

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 £ 0.51 million.

  • Cash balance of £ 41.5 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  3 months  6 months  3 months
                                         ended     ended     ended     ended
                                       30 June   30 June   30 June   30 June
----------------------------------------------------------------------------
Income Statement Information              2014      2014      2013      2013
----------------------------------------------------------------------------
                                           £ m       £ m       £ m       £ m
----------------------------------------------------------------------------
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  3 months  6 months  3 months
                                         ended     ended     ended     ended
                                       30 June   30 June   30 June   30 June
----------------------------------------------------------------------------
Cash Flow Information                     2014      2014      2013      2013
----------------------------------------------------------------------------
                                           £ m       £ m       £ m       £ m
----------------------------------------------------------------------------
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
----------------------------------------------------------------------------
                                               £ m          £ m          £ m
----------------------------------------------------------------------------
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:

Xcite Energy Limited                                    +44 (0) 1483 549 063
Rupert Cole / Andrew Fairclough

Liberum (Joint Broker and Nominated Adviser)            +44 (0) 203 100 2222
Clayton Bush / Tim Graham

Morgan Stanley (Joint Broker)                           +44 (0) 207 425 8000
Andrew Foster

Bell Pottinger                                          +44 (0) 207 861 3232
Mark Antelme / Henry Lerwill

This information is provided by RNS
The company news service from the London Stock Exchange

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Have you ever noticed how some IT people seem to lead successful, rewarding, and satisfying lives and careers, while others struggle? IT author and speaker Don Crawley uncovered the five principles that successful IT people use to build satisfying lives and careers and he shares them in this fast-paced, thought-provoking webinar. You'll learn the importance of striking a balance with technical skills and people skills, challenge your pre-existing ideas about IT customer service, and gain new in...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Wooed by the promise of faster innovation, lower TCO, and greater agility, businesses of every shape and size have embraced the cloud at every layer of the IT stack – from apps to file sharing to infrastructure. The typical organization currently uses more than a dozen sanctioned cloud apps and will shift more than half of all workloads to the cloud by 2018. Such cloud investments have delivered measurable benefits. But they’ve also resulted in some unintended side-effects: complexity and risk. ...
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
DevOps and microservices are permeating software engineering teams broadly, whether these teams are in pure software shops but happen to run a business, such Uber and Airbnb, or in companies that rely heavily on software to run more traditional business, such as financial firms or high-end manufacturers. Microservices and DevOps have created software development and therefore business speed and agility benefits, but they have also created problems; specifically, they have created software securi...
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business. Though, IoT is far more complex than most firms expected with a majority of IoT projects having failed. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, Chief IoTologist at Wipro, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology portfolios and business models to adopt and leverage IoT. He will delve in...
Cloud Expo, Inc. has announced today that Aruna Ravichandran, vice president of DevOps Product and Solutions Marketing at CA Technologies, has been named co-conference chair of DevOps at Cloud Expo 2017. The @DevOpsSummit at Cloud Expo New York will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and @DevOpsSummit at Cloud Expo Silicon Valley will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
In his session at @ThingsExpo, Steve Wilkes, CTO and founder of Striim, will delve into four enterprise-scale, business-critical case studies where streaming analytics serves as the key to enabling real-time data integration and right-time insights in hybrid cloud, IoT, and fog computing environments. As part of this discussion, he will also present a demo based on its partnership with Fujitsu, highlighting their technologies in a healthcare IoT use-case. The demo showcases the tracking of pati...
Tricky charts and visually deceptive graphs often make a case for the impact IT performance has on business. The debate isn't around the obvious; of course, IT performance metrics like website load time influence business metrics such as conversions and revenue. Rather, this presentation will explore various data analysis concepts to understand how, and how not to, assert such correlations. In his session at 20th Cloud Expo, Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Sys...
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
Stratoscale, the software company developing the next generation data center operating system, exhibited at SYS-CON's 18th International Cloud Expo®, which took place at the Javits Center in New York City, NY, in June 2016.Stratoscale is revolutionizing the data center with a zero-to-cloud-in-minutes solution. With Stratoscale’s hardware-agnostic, Software Defined Data Center (SDDC) solution to store everything, run anything and scale everywhere, IT is empowered to take control of their data ce...