5th Jul 2011 14:42
THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES
TSX-V, LSE-AIM: XEL
5 July 2011
Xcite Energy Limited
("Xcite Energy" or the "Company")
Increase to Ring Fenced Expenditure Supplement
The Company notes the announcement today by HM Treasury of an increase in the annual Ring Fenced Expenditure Supplement ("RFES") from 6% to 10% for the North Sea fiscal regime.
The increase in the RFES enhances the underlying asset value of the Bentley field by increasing the taxable losses that the Company may carry forward to offset against future Corporation Tax liabilities.
Richard Smith, Chief Executive Officer of Xcite Energy commented:
"We welcome today's announcement as an indication of the benefit of industry consultation and the Government's appetite for assisting with the development of new oil fields in the UK Continental Shelf.
The uplift in the supplement together with the Heavy Oil Allowances previously introduced can only improve the already robust economics of the Bentley field".
ENQUIRIES:
Xcite Energy Limited |
+44 (0) 1483 549 063 | |
Richard Smith | Chief Executive Officer | |
Rupert Cole | Chief Financial Officer | |
Oriel Securities (Joint Broker and Nomad) | +44 (0) 207 710 7600 | |
Emma Griffin Simon Edwards | ||
Morgan Stanley (Joint Broker) | +44 (0) 207 425 8000 | |
Andrew Foster | ||
Pelham Bell Pottinger | +44 (0) 207 861 3232 | |
Mark Antelme Henry Lerwill |
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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.
Oriel Securities which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for Xcite Energy and for no one else in connection with the subject matter of this announcement and will not be responsible to anyone other than Xcite Energy for providing the protections afforded to its clients or for providing advice in connection with the subject matter of this announcement.
Morgan Stanley which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for Xcite Energy and for no one else in connection with the subject matter of this announcement and will not be responsible to anyone other than Xcite Energy for providing the protections afforded to its clients or for providing advice in connection with the subject matter of this announcement.
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Xcite Energy