24th Aug 2015 08:20
LONDON (Alliance News) - Xcite Energy Ltd Monday said its net loss widened slightly in the first half of 2015 as it continues to source partners and funding for the Bentley field in the UK North Sea, while conceding it has been a "slow process".
The company said it made a USD830,000 net loss in the first half of the year, versus a USD810,000 loss a year before, as net cashflow from operations totalled USD3.3 million, a substantial drop from USD10.5 million a year earlier.
At the end of June, the company had a cash balance of USD34.4 million.
"Management believes it is making progress despite the industry environment remaining challenging with the oil price recently falling below USD50 per barrel, development budgets remaining under pressure, projects deferred and an increasing number of North Sea assets being put up for sale as oil companies seek to realign their portfolios," said the company.
"The company's strategy remains flexible and innovative as we pursue a range of potential funding solutions to secure the development capital required for the Bentley first phase development," it added.
Xcite said it is continuing to complete technical due diligence with a "number of potential field development partners" and said it "recognises that this appears to be a slow process".
The company is also continuing to work with a number of parties in order to develop an asset funding package for the construction and delivery of the mobile offshore production unit and the floating storage and offloading vessel for the field.
Xcite shares were down 4.7% to 27.17 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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