Xcite Energy Limited XEL Results for the Periods Ended 30 September 2012

  Xcite Energy Limited (XEL) - Results for the Periods Ended 30 September 2012

RNS Number : 7197Q
Xcite Energy Limited
09 November 2012



                             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 

· 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 

· 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  £13.3 million from the  sale of the blended  crude 
oil and diluent.

· Net loss in the three month period of £0.57 million. Further increase in
net assets  through  continued investment  in  the Bentley  field  development 

· Cash of £54.6 million as at 30 September 2012, following net new  equity 
capital  and   debt  financing   of   £21.2  million   in  the   three   month 
period.Included in cash balances are amounts held in escrow of £44.0 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  27^th 
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 
27^th Round  licences), will  form  part of  the  updated reserves  report  (a 
Competent Person's Report) and the RBL banks review process, expected early in

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 

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
                                                 £m       £m       £m       £m
Revenue                                        13.3     13.3        -        -
Net profit/(loss)                             (0.8)    (0.6)    (1.0)    (0.7)
Earnings/(loss) per share (basic and         (0.3p)   (0.2p)   (0.6p)   (0.4p)
diluted) in pence

                                     9 months ended 3 months 9 months 3 months
                                                       ended    ended    ended
                                            30 Sept
                                                     30 Sept  30 Sept  30 Sept
Cash Flow Information                          2012     2012     2011     2011
                                                 £m       £m       £m       £m
Net cash flow from operations                 (8.2)   (13.0)   (16.8)      0.7
Net cash flow from investing                (100.8)   (35.4)   (12.2)    (4.9)
Net cash flow from financing                   99.5     21.3     43.8     10.6

                                       As at       As at   As at

                                     30 Sept 31 December 30 Sept
Balance Sheet Information               2012        2011    2011
                                          £m          £m      £m
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

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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


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