THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES Xcite Energy (
-- The Company raised in excess of GBP 13 million net of expenses and
commenced trading on November 16, 2007.
-- Proceeds will be used to fund the testing of the Block 9/3b appraisal
well on the Bentley field (which is due to spud imminently), drilling
contingencies and working capital and general corporate purposes.
The three month period under review saw the Company move forward in its
plans to drill the appraisal well on Block 9/3b. Material activities
included:
-- Site survey completion in preparation for appraisal well.
-- Completion of drilling plans for submission to the Department for
Business, Enterprise and Regulatory Reform ("DBERR") for approval.
-- Initial re-interpretation of 3D seismic confirmed increased reservoir
volumes.
All DBERR approvals have now been obtained and the Company is preparing
imminently to spud the appraisal well on Block 9/3b.
Richard Smith, Chief Executive Officer of Xcite Energy, commented:
"The support of the investment community at the time of our listing in
London and Toronto means that we are fully funded for our near term
drilling programme, which is due to commence shortly. We look forward to
progressing the development of the Bentley field, targeting first
production in early 2009."
Xcite Energy is an exploration and development company currently focused on
the appraisal and development of heavy oil resources in the North Sea on
the UK Continental Shelf.
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 changes in market and
competition, governmental or regulatory developments and general economic
conditions. Additional information identifying risks and uncertainties are
contained in Xcite Energy' prospectus filed with the Canadian securities
regulatory authorities, available at www.sedar.com.
INTERIM FINANCIAL STATEMENTS
3 MONTHS ENDED OCTOBER 31, 2007
Xcite Energy Limited
Geneva Place
Waterfront Drive
P.O. Box 3469
Road Town
Tortola
British Virgin Islands
and
Banchory Business Centre
Hill of Banchory Business Park
Burn O'Bennie Road
Banchory
AB31 5ZU
Phone: +44 1330 826740
Fax: +44 1330 820670
www.xcite-energy.com
info@xcite-energy.com
TSX-V: XEL
LSE-AIM: XEL
XCITE ENERGY LIMITED - INTERIM FINANCIAL STATEMENTS
CONSOLIDATED INCOME STATEMENT
For the 3 month period ended 31 October 2007
NOTES 3 Months ended 12 Months ended
---- --------------------- ----------------------
October October October October
2007 2006 2007 2006
--------- ---------- ---------- ----------
GBP GBP GBP GBP
Unaudited Unaudited Unaudited Audited
Administrative expenses 193,481 73 1,021,151 188
--------- ---------- ---------- ----------
Operating Loss (193,481) (73) (1,021,151) (188)
Finance Income - bank
interest 111,752 80 145,453 257
--------- ---------- ---------- ----------
(Loss)/Profit before
tax (81,729) 7 (875,698) 69
Tax Expense 3 - 2 - 21
--------- ---------- ---------- ----------
(Loss)/Profit for the
period attributable to
equity holders (81,729) 5 (875,698) 48
========= ========== ========== ==========
Earnings per share
attributable to equity
holders of the parent
entity
Basic and diluted 4 (0.00p) 0.00p (0.03p) 0.00p
All results are derived from continuing operations.
STATEMENT OF RECOGNISED INCOME AND EXPENSE
There is no difference between the (loss)/profit for the periods shown and
the total recognised income and expense for the respective periods.
Reconciliations of movements in total equity are given in note 10 to the
financial statements.
CONSOLIDATED BALANCE SHEET
At 31 October 2007
Notes 2007 2006
GBP GBP
Assets Unaudited Audited
Non-current assets
Intangible assets 5 1,670,373 2,103,110
Current assets
Trade and other receivables 6 39,913 3,132
Cash and cash equivalents 8,288,764 142,378
---------- ----------
Total current assets 8,328,677 145,510
---------- ----------
Total assets 9,999,050 2,248,620
Liabilities
Current liabilities
Trade and other payables 7 874,663 2,248,535
---------- ----------
Total liabilities 874,663 2,248,535
---------- ----------
Net assets 9,124,387 85
========== ==========
Capital and reserves attributable to equity
holders of the company
Share Capital 9 10,000,000 -
Merger Reserve 10 218 218
Retained earnings 10 (875,831) (133)
---------- ----------
Total equity 10 9,124,387 85
========== ==========
CONSOLIDATED CASH FLOW STATEMENT
For the 3 month period ended 31 October 2007
Notes 3 Months ended 12 Months ended
October October October October
2007 2006 2007 2006
GBP GBP GBP GBP
Unaudited Unaudited Unaudited Audited
Net cash flow from
operating activities
(Loss)/Profit for the
period after tax (81,729) 5 (875,698) 48
Adjustment for Interest
received (111,752) (80) (145,453) (257)
Movement in working
capital:
- trade and other
receivables (21,728) - (36,781) 32,507
- trade and other
payables (21,378) (35,343) (1,373,872) 455,516
--------- ---------- ---------- --------
Cash flow from
operations (236,587) (35,418) (2,431,804) 487,814
Cash flow from investing
activities
Exploration and
Evaluation Assets (465,982) 143,543 432,737 (348,457)
Interest received 111,752 80 145,453 257
--------- ---------- ---------- --------
Net cash flow from
investing activities (354,230) 143,623 578,190 (348,200)
--------- ---------- ---------- --------
Cash flow from financing
activities
Issue of shares - 4 10,000,000 4
--------- ---------- ---------- --------
Net cash flow used in
financing activities - 4 4
--------- ---------- ---------- --------
Net (decrease)/increase
in cash and cash
equivalents (590,817) 108,209 8,146,386 139,618
Cash and cash equivalents
at 1 August /
1 November 8,879,581 34,169 142,378 2,760
--------- ---------- ---------- --------
Cash and cash
equivalents at 31
October 8,288,764 142,378 8,288,764 142,378
========= ========== ========== ========
Cash and cash
equivalents comprise:
Cash available on demand 8,288,764 142,378 8,288,764 142,378
========= ========== ========== ========
NOTES TO THE FINANCIAL STATEMENTS
For the 3 month period ended 31 October 2007
1 ACCOUNTING POLICIES
Basis of presentation
These financial statements should be read in conjunction with the financial
statements included in the Prospectus as filed on November 8th, 2007 and
available on www.sedar.com.
The interim financial information for the three months ended October 31st,
2007 has been prepared in accordance with the accounting policies that will
apply for the year ending December 31st, 2007 which will follow the
International Financial Reporting Standards (IFRS) and interpretations as
endorsed by the European Union.
Xcite Energy Limited is registered in the British Virgin Islands under the
BVI Business Companies Act 2004. The interim financial information for the
three months ended October 31st, 2007 is unaudited and does not constitute
statutory accounts within the meaning of section 240 of the United Kingdom
Companies Act 1985.
Basis of preparation
The principal accounting policies adopted in the preparation of the
consolidated financial statements are set out below.
The consolidated financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS and IFRIC
interpretations) issued by the International Accounting Standards Board
(IASB). The consolidated financial statements have also been prepared in
accordance with IFRSs adopted by The European Union and therefore they
comply with Article 4 of the EU IAS Regulation.
Basis of consolidation
The company was incorporated with the sole purpose of acquiring its
controlling interest in its directly held, wholly owned, subsidiary Xcite
Energy Resources Limited ("XER"). XER was acquired through a transaction
under common control, as defined in IFRS 3 Business Combinations. As a
result of the transaction, the equity shareholders of Xcite Energy Limited
("XEL") and Xcite Energy Resources Limited became the equity shareholders
of the combined entities. The Directors note that transactions under
common control and those that involve a new shell company (XEL) with no
business of its own acquiring a controlling interest in an existing entity
(XER), are outside the scope of IFRS 3 and that there is no guidance
elsewhere in IFRS covering such transactions.
IFRS contains specific guidance to be followed where a transaction falls
outside the scope of IFRS. This guidance is included at paragraphs 10 to
12 of IAS 8 Accounting Policies, Changes in Accounting Estimates and
Errors. This requires, inter alia, that where IFRS does not include
guidance for a particular issue, the Directors may also consider the most
recent pronouncements of other standard setting bodies that use a similar
conceptual framework to develop accounting standards. In this regard it is
noted that the UK Accounting Standards Board (ASB) has issued an accounting
standard covering acquisitions and mergers (FRS 6). FRS 6 allows for
merger accounting to be applied where two or more companies are combined to
form one group on terms such that the equity shareholders in each company
become the equity shareholders in the combined entity.
NOTES TO THE FINANCIAL STATEMENTS
For the 3 month period ended 31 October 2007 (continued)
1 ACCOUNTING POLICIES (CONTINUED)
Having considered the requirements of IAS 8, and the guidance included
within FRS 6, it is considered appropriate to apply merger accounting when
dealing with the transaction in which the Company acquired its controlling
interest in Xcite Energy Resources Limited. The effect of the above is:
-- New shares issued by XEL as consideration for the merger are recorded
at their nominal amount in books of XEL;
-- The net assets of XER and XEL are combined using existing book values;
-- No amount is recognised as consideration for goodwill or negative
goodwill; and
-- The consolidated profit and loss includes profits of each company for
the entire period, regardless of the date of the merger, and the
comparative amounts in the consolidated accounts are restated to the
aggregate of the amounts recorded by the two companies.
Revenue
Revenue arises from the sale of oil produced from Block 9/3b on the UK
Continental Shelf and reflects the actual sales value, net of VAT and
overriding royalties. Revenues are recognised when the risks and rewards of
ownership together with effective control are transferred to the customer
and the amount of revenue and associated costs incurred in respect of the
relevant transaction can be reliably measured. Revenue is not recognised
unless it is probable that the economic benefits associated with the sales
transaction will flow to the group.
Interest income is recognised on an accruals basis and is disclosed
separately on the face of the income statement.
Intangible fixed assets -- Exploration and Evaluation Assets
Capitalisation
Certain costs (other than payments to acquire the legal right to explore)
incurred prior to acquiring the rights to explore are charged directly to
the income statement. All costs incurred after the rights to explore an
area have been obtained, such as geological and geophysical costs and other
direct costs of exploration (drilling, trenching, sampling and technical
feasibility and commercial viability activities) and appraisal are
accumulated and capitalised as intangible Exploration and Evaluation
("E&E") assets.
E&E costs are not amortised prior to the conclusion of appraisal
activities. At completion of appraisal activities if technical feasibility
is demonstrated and commercial reserves are discovered, then, following
development sanction, the carrying value of the relevant E&E asset will be
reclassified as a development and production asset, but only after the
carrying value of the relevant E&E asset has been assessed for impairment,
and where appropriate, its carrying value adjusted. If after completion of
appraisal in an area, it is not possible to determine technical feasibility
and commercial viability or if the legal right to explore expires or if the
Company decides not to continue exploration and evaluation is written off
to the income statement in the period the relevant events occur.
NOTES TO THE FINANCIAL STATEMENTS
For the 3 month period ended 31 October 2007 (continued)
1 ACCOUNTING POLICIES (CONTINUED)
Impairment
If and when facts and circumstances indicate that the carrying value of an
E&E asset may exceed its recoverable amount an impairment review is
performed.
This is carried out by identifying groups of assets, within the E&E asset,
which together form the Cash Generating Unit ("CGU") and comparing the
carrying value of the CGU with its recoverable amount. And any resulting
impairment loss is written off directly to the income statement. The
recoverable amount of the CGU is determined as the higher of its fair value
less costs to sell and its value in use.
Foreign currency
The functional currency of the group is Pounds Sterling. Transactions
entered into by the group entities in a currency other than the functional
currency are recorded at the rates ruling when the transactions occur.
Foreign currency monetary assets and liabilities are translated at the
rates ruling at the balance sheet date. Exchange differences arising on the
retranslation of unsettled monetary assets and liabilities are similarly
recognised immediately in the income statement.
For the purposes of presenting consolidated financial statements, the
assets and liabilities of the parent are translated from US Dollars into
Pounds Sterling at exchange rates prevailing on the balance sheet date.
Income and expense items are translated at the average exchange rates for
the period where it approximates to the actual rate. Exchange differences
arising, if any, are classified as equity and transferred to the Group's
translation reserve.
Financial assets
The Group's financial assets comprise the following:
Other receivables -- these are measured on initial recognition at fair
value and are subsequently measured at amortised cost. Appropriate
allowances for estimated irrecoverable amounts are recognised in profit or
loss when there is objective evidence that the asset is impaired.
Cash and cash equivalents -- comprise cash on hand and are subject to an
insignificant risk of changes in value.
Financial liabilities
The group's financial liabilities comprise trade and other payables and are
recognised on initial recognition at fair value and are subsequently
measured at amortised cost.
Deferred taxation
Deferred tax assets and liabilities are recognised where the carrying
amount of an asset or liability in the balance sheet differs to its tax
base.
NOTES TO THE FINANCIAL STATEMENTS
For the 3 month period ended 31 October 2007 (continued)
1 ACCOUNTING POLICIES (CONTINUED)
Recognition of deferred tax assets is restricted to those instances where
it is probable that taxable profit will be available against which the
difference can be utilised.
The amount of the asset or liability is determined using tax rates that
have been enacted or substantially enacted by the balance sheet date and
are expected to apply when the deferred tax liabilities/(assets) are
settled/(recovered).
Deferred tax assets and liabilities are offset when the group has a legally
enforceable right to offset current tax assets and liabilities and the
deferred tax assets and liabilities relate to taxes levied by the same tax
authority on either:
-- the same taxable group company; or
-- different group entities which intend either to settle current tax
assets and liabilities on a net basis, or to realise the assets and settle
the liabilities simultaneously, in each future period in which significant
amounts of deferred tax assets or liabilities are expected to be settled or
recovered.
New accounting standards adopted during the period
During the period the Group adopted IFRIC 10 'Interim Financial Reporting
and Impairment.' IFRIC 10 prohibits impairment losses recognised in Interim
Reports from being reversed in the next annual financial statements. There
has been no affect on the Groups reported results on financial position
arising from the adoption of IFRIC 10.
New standards and interpretations not yet applied
The following new standards and interpretations, which have been issued by
the IASB and the IFRIC, are effective for future periods and have not been
adopted early in these interim financial statements. A description of these
standards and interpretations, together with (where applicable) an
indication of the effect of adopting them, is set out below.
None are expected to have a material effect on the reported results or
financial position of the Group.
Amendment to IAS 23 'Borrowing Costs' was issued in May 2007 and is
effective for accounting periods beginning on or after 1 January 2009. The
amendment requires borrowing costs that are directly attributable to the
acquisition, construction or production of a qualifying asset to be added
to the cost of that asset.
IFRIC 11 'IFRS 2 -- Group and Treasury Share Transactions' was issued in
November 2006 and is effective for annual periods beginning on or after 1
March 2007. IFRIC 11 clarifies the accounting for share based transactions
which fall within the scope of IFRS 2.
IFRIC 12 'Service Concession Arrangements' was issued in November 2006 and
is effective for annual periods beginning on or after 1 January 2008. IFRIC
12 prohibits private sector operators from recognising as their own those
infrastructure assets which are owned by the grantor.
NOTES TO THE FINANCIAL STATEMENTS
For the 3 month period ended 31 October 2007 (continued)
1 ACCOUNTING POLICIES (CONTINUED)
IFRIC 13 'Customer Loyalty Programmes' was issued in June 2007 and is
effective for annual periods beginning on or after 1 July 2008. IFRIC 13
requires the fair value of revenue relating to customer loyalty rewards to
be deferred until all related obligations to the customer have been
fulfilled.
IFRIC 14 'IAS 19 the limit on a defined benefit asset, minimum funding
requirements and their interaction', was issued in June 2007 and is
effective for annual periods beginning on or after 1 January 2008. IFRIC 14
clarifies how any asset to be recognised should be determined, in
particular where a minimum funding requirement exists.
IFRS 7 'Financial Instruments: Disclosures and Amendment to IAS 1: Capital
Disclosures' were issued in August 2005 and are effective for annual
periods beginning on or after 1 January 2007. They revise and enhance
previous disclosures required by IAS 32 'Financial Instruments: Disclosures
and Presentation' and IAS 30 'Disclosures in the Financial Statements of
Banks and similar Financial Institutions.'
IFRS 8 'Operating Segments' was issued in November 2006 and is effective
for annual periods beginning on or after 1 January 2009. It requires
portable operating segments to be based on the entity's own internal
reporting structure. It also extends the scope and disclosure requirements
of IAS 14 Segmental Reporting.
Status of EU endorsement
Entities in EU Member States which report in accordance with EU-endorsed
IFRS can only apply IFRSs and IFRICs where the endorsement process has been
completed at the date of approval of their financial statements. Of the
standards and interpretations listed above, the following had not yet been
endorsed by the European Union at the date these interim financial
statements were authorised for issue:
-- IFRS 8 'Operating Segments';
-- IFRIC 12 'Service Concession Arrangements';
-- IFRIC 13 'Customer Loyalty Programmes';
-- IFRIC 14 'IAS 19 the limit on a defined benefit asset'; and
-- Amendment to IAS 23 'Borrowing Costs.'
2 Segment Information
The Company only operates in a single business and geographical segment.
The company's single line of business is the exploration and evaluation of
oil and gas reserves, whilst the geographical segment in which it operates
is currently restricted to Block 9/3b situated in the North Sea.
NOTES TO THE FINANCIAL STATEMENTS
For the 3 month period ended 31 October 2007 (continued)
3 Taxation
a) Reconciliation of the total tax charge
Differences between the UK standard rate of corporation tax and tax
assessed are reconciled below.
2007 2006
GBP GBP
Accounting (loss)/profit before tax (81,729) 7
------ -----
Taxation at UK Statutory income tax rate of 30% (81,729) 2
Expenses not deductible 81,729 -
------ -----
Tax charge - 2
====== =====
4 Earnings per share
The calculation of basic earnings per ordinary share is based on a loss of
£81,729 (2006: £5 profit) and on 53,363,500 (2006: 21,800,000), being the
weighted average number of ordinary shares in issue during the period.
No share options or other instruments with a potentially dilutive effect
were granted during the 3 month period to 31 October 2007 or as at 31
October 2006.
5 Intangible Assets
Exploration and Evaluation Assets
Licence costs
2007 2006
GBP GBP
Cost and Carrying Value
At 1 August 66,297 36,162
Additions - 30,135
------ ------
At 31 October 66,297 66,297
====== ======
NOTES TO THE FINANCIAL STATEMENTS
For the 3 month period ended 31 October 2007 (continued)
5 Intangible Assets (continued)
Appraisal and exploration
costs
2007 2006
GBP GBP
Cost and Carrying Value
At 1 August 1,138,094 2,210,491
Additions
- Costs capitalised 465,982 138,816
- Contributions to costs received - (312,494)
--------- ---------
At 31 October 1,604,076 2,036,813
========= =========
TOTAL
2007 2006
GBP GBP
Cost and Carrying Value
At 1 August 1,204,391 2,246,653
Additions
- Costs capitalised 465,982 168,951
- Contributions to costs received - (312,494)
--------- ---------
At 31 October 1,670,373 2,103,110
========= =========
Based on the Company's success in achieving the extension of its Licence
over Block 9/3b on the UK Continental Shelf, the costs associated with the
appraisal of this Block have been capitalised in accordance with the
Company's accounting policy in Note 1.
In view of the forecast revenue streams and cashflows of these projects,
management is confident that the carrying amount of the related intangible
assets as disclosed above will be recovered in full and that there is no
need for any impairment provision. The situation will be monitored by
management and adjustments made in future periods if future events indicate
that such adjustments are appropriate.
NOTES TO THE FINANCIAL STATEMENTS
For the 3 month period ended 31 October 2007 (continued)
6 Trade and other receivables
2007 2006
GBP GBP
Indirect taxes receivable 36,238 -
Other receivables 3,675 3,132
--------- ---------
39,913 3,132
========= =========
7 Trade and other payables
2007 2006
GBP GBP
Trade payables 199,974 170,148
Directors' loan accounts - 1,954,125
Corporation and other taxes payable 40,709 28,262
Accruals and other creditors 633,980 96,000
--------- ---------
874,663 2,248,535
========= =========
8 Financial instruments
The Company's principal financial instruments are other receivables, trade
and other payables and cash all of which are denominated in pounds
sterling. The main purpose of these financial instruments is to finance the
Company's ongoing operational requirements.
The major financial risks faced by the Company are credit risk and
liquidity risk. The Company does not consider that it has any significant
credit risk due to the nature of its receivables.
The Company does not trade in financial instruments. Policies for the
management of these risks are shown below
a) Credit risk
Receivables relate to VAT recoverable and an office rent deposit. As such,
they are regarded as low risk.
NOTES TO THE FINANCIAL STATEMENTS
For the 3 month period ended 31 October 2007 (continued)
8 Financial instruments (continued)
b) Liquidity risk
Company management has responsibility for reducing exposure to liquidity
risk and for ensuring that adequate funds are available to meet anticipated
requirements. It operates according to the policies and guidelines
established by the Board. Cash management is carried out centrally.
Carrying Amount October
2007 2006
GBP GBP
Financial assets
- Cash 8,288,764 142,378
- Receivables (Current) 39,913 3,132
Financial Liabilities
- Payables (Current) 874,663 2,248,535
The management believes that as they are short term, the fair values for
all items equate to their carrying amount.
The accounting policies for financial assets and financial liabilities are
disclosed in note 1.
c) Interest rate risks
Numeric information presented below
The currency and interest profile of the Group's financial assets and
liabilities are as follows:
Floating rate Fixed rate Interest free
liabilities liabilities liabilities
2007 2007 2007 Total
GBP GBP GBP GBP
Sterling - - 874,663 874,663
$US - - - -
------------- ----------- ------------- -------
- - 874,663 874,663
============= =========== ============= =======
NOTES TO THE FINANCIAL STATEMENTS
For the 3 month period ended 31 October 2007 (continued)
8 Financial instruments (continued)
Floating rate Fixed rate Interest free
liabilities liabilities liabilities
2006 2006 2006 Total
GBP GBP GBP GBP
Sterling - - 2,248,535 2,248,535
$US - - - -
------------- ----------- ------------ ---------
- - 2,248,535 2,248,535
============= =========== ============ =========
Floating rate Fixed rate Interest free
assets assets assets
2007 2007 2007 Total
GBP GBP GBP GBP
Sterling - 745,375 39,913 785,288
$US - 7,543,389 - 7,543,389
------------- ----------- ------------ ---------
- 8,288,764 39,913 8,328,677
============= =========== ============ =========
Floating rate Fixed rate Interest free
assets assets assets
2006 2006 2006 Total
GBP GBP GBP GBP
Sterling - 142,378 3,132 145,510
$US - - - -
------------- ----------- ------------ ---------
- 142,378 3,132 145,510
============= =========== ============ =========
Sterling fixed rate assets earn interest at circa 5.5% per annum. $US
fixed rate assets earn interest at circa 4.8% per annum. Cash deposits are
only kept with banks with "AA" rating.
NOTES TO THE FINANCIAL STATEMENTS
For the 3 month period ended 31 October 2007 (continued)
9 Share capital
Number of shares
2007 2006
Authorised
- Ordinary shares of no par value each Unlimited Unlimited
Issued and fully paid up
- Ordinary shares of no par value each 41,800,000 -
GBP value of shares
2007 2006
Authorised
- Ordinary shares of no par value Unlimited Unlimited
Issued and fully paid up
- Ordinary shares of no par value 10,000,000 -
========== =========
Xcite Energy Limited is registered in the British Virgin Islands under the
BVI Business Companies Act 2004. Under BVI laws and regulations there is
no concept of "Share Premium," and all proceeds from the sale of no par
value equity shares is deemed to be Share Capital of the company.
Shares issued
GBP value of shares
2007 2006
41,800,000 ordinary shares issued during
the period 10,000,000 -
========== =========
NOTES TO THE FINANCIAL STATEMENTS
For the 3 month period ended 31 October 2007 (continued)
10 Retained earnings, merger reserve and total equity
Retained Earnings
2007 2006
GBP GBP
At 1 August (794,102) (138)
(Loss)/profit for the period (81,729) 5
------- -------
At 31 October (875,831) (133)
======== =======
Merger Reserve
2007 2006
GBP GBP
At 1 August 218 214
Change for the period - 4
------- -------
At 31 October 218 218
======== =======
Total Equity
2007 2006
GBP GBP
At 1 August 9,206,116 76
(Loss)/profit for the period (81,729) 5
Shares issued - 4
--------- -------
At 31 October 9,124,387 85
========= =======
The following explains the nature and purpose of each reserve within owners
equity:
Share Capital Amount of the contributions made by
shareholders in return for the issue of
shares.
Retained Earnings Cumulative net gains and losses recognised
in the company balance sheet.
Merger Reserve The difference between the nominal value of the
shares issued to acquire a subsidiary and the
nominal value of the shares acquired.
Contact Information: Enquiries: Xcite Energy Richard Smith Chief Executive Officer Rupert Cole Chief Financial Officer +44 1330 826 740 Westwind Partners Paul Colucci Managing Director + 44 20 7290 9716 Strand Partners Ltd. James Harris Director Warren Pearce Associate Director +44 20 7409 3494 Pelham Public Relations Alisdair Haythornthwaite Katherine Stewart Lucy Frankland +44 20 7743 6676