ABERDEENSHIRE, UNITED KINGDOM--(Marketwire - Nov 9, 2012) -
TSXV: IEA
As previously released the announcement contained a link to a PDF
document which did not include 'Management's Discussion and Analysis'.
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DIRECTLY OR INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO
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TSX-V, LSE-AIM: XEL
9 November 2012
Xcite Energy Limited
("Xcite Energy" or the "Company")
Results for the 3 and 9 Month Periods Ended 30 September 2012
Xcite Energy announces its results for the 3 and 9 month periods ended
30 September 2012.
Operational Highlights
- Bentley pre-production well test successfully and safely
concluded in September 2012, with initial well test results exceeding
management expectations:
- Water breakthrough better than expected (i.e. less water
produced)
- Extensive data gathered for reservoir model calibration and
production facilities design, enabling optimisation of field
development plan
- Significantly improved understanding of oil, gas and water
movement behaviour
- Produced approximately 149,000 barrels of Bentley crude, which
was combined with approximately 58,000 barrels of diluent.
- 9/3b-7 and 7Z wells suspended for future use as production wells
during Phase 1B and the Rowan Norway demobilised from the field, with
all associated equipment off hire.
Financial Highlights
- Revenue generated of GBP13.3 million from the sale of the blended
crude oil and diluent.
- Net loss in the three month period of GBP0.57 million. Further
increase in net assets through continued investment in the Bentley
field development programme.
- Cash of GBP54.6 million as at 30 September 2012, following net new
equity capital and debt financing of GBP21.2 million in the three
month period.Included in cash balances are amounts held in escrow of
GBP44.0 million relating to the Bentley Phase 1A work programme, a
significant amount of which is expected to be returned to the
Company in due course.
- Issue of an additional US$10 million of unsecured 14% loan notes
to West Face Capital Inc. in the three month period, giving a total
of US$60 million in the nine month period.
- Signing of a US$155 million reserves based lending facility in
June with a leading syndicate of lending institutions to provide a
substantial part of the Phase 1B work programme funding requirement.
Post Period Event
UK Department of Energy and Climate Change has offered the Company
licenses over Blocks 9/4 (part), 9/8b and 9/9f (split) as applied for
in the UK 27th Offshore Licensing Round. These licences could add
significant additional value to a Bentley hub development concept.
Significant Work Ahead
The Phase 1A programme was a highly successful, extensive and thorough
pre-production well test, which has provided substantial quantities of
valuable data.The Company's immediate priority is to continue to
analyse this information in order to update the reservoir model and
production profiles, which, together with the inclusion of recently
acquired new 3D seismic data over the Bentley field and its surrounding
prospects (including 27th Round licences), will form part of the
updated reserves report (a Competent Person's Report) and the RBL banks
review process, expected early in 2013.
This data and analysis thereof will also be utilised in a data room in
due course for the intended farm-out discussions, with the intention of
commencing the initial engagement process by the end of the year.
2013 is therefore expected to be an important year for Xcite Energy,
with an updated Competent Persons Report, discussions with potential
farm-in partners, the re-submission of the updated Field Development
Plan to DECC and the initiation of the Phase 1B work programme, the
planning for which is well underway. The Company looks forward to
updating investors on these important events.
The following tables summarise the Group's financial performance in the
3 and 9 months ended 30 September 2012 and the comparatives for the 3
and 9 months ended 30 September 2011.
9 months 3 months 9 months 3 months
ended ended ended ended
30 Sept 30 Sept 30 Sept 30 Sept
Income Statement Information 2012 2012 2011 2011
GBPm GBPm GBPm GBPm
Revenue 13.3 13.3 - -
Net profit/(loss) (0.8) (0.6) (1.0) (0.7)
Earnings/(loss) per share (basic (0.3p) (0.2p) (0.6p) (0.4p)
and diluted) in pence
9 months 3 months 9 months 3 months
ended ended ended ended
30 Sept 30 Sept 30 Sept 30 Sept
Cash Flow Information 2012 2012 2011 2011
GBPm GBPm GBPm GBPm
Net cash flow from (8.2) (13.0) (16.8) 0.7
operations
Net cash flow from (100.8) (35.4) (12.2) (4.9)
investing activities
Net cash flow from 99.5 21.3 43.8 10.6
financing activities
As at As at As at
30 Sept 31 December 30 Sept
Balance Sheet Information 2012 2011 2011
GBPm GBPm GBPm
Total assets 260.7 152.8 130.2
Cash and cash equivalents 54.6 64.1 50.8
Current liabilities 53.7 9.5 7.0
Long term liabilities (deferred tax) 0.5 0.5 0.5
Total net assets 206.5 142.7 122.7
http://www.rns-pdf.londonstockexchange.com/rns/7492Q_-2012-11-9.pdf
ENQUIRIES:
Xcite Energy Limited +44 (0) 1483 549 063
Rupert Cole / Andrew Fairclough
Oriel Securities (Joint Broker and Nomad) +44 (0) 207 710 7600
Michael Shaw / Ashton Clanfield
Morgan Stanley (Joint Broker) +44 (0) 207 425 8000
Andrew Foster
Pelham Bell Pottinger +44 (0) 207 861 3232
Mark Antelme / Henry Lerwill
Paradox Public Relations +1 514 341 0408
Jean-Francois Meilleur
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 Company's annual information form dated 26 October
2010 and in the Management's Discussion and Analysis for Xcite Energy
dated 24 July 2012 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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