Financing: Contractor partner model expands options
Following finalisation of the technical and commercial agreements with the contracting group, Xcite will then (and only then) look to finalise financing. Few indications have been given as to the overall make-up of the financing as this will be a key part of the commercial negotiations with the partnering contractor group. However, we expect the funding to most likely come from three sources, as follows:  A degree of cost carry from partnering contractors for field services and equipment supply;  Project finance on key offshore facilities (most probably the MOPU platform); and Xcite Energy | 19 December 2014 6  Corporate debt, either bonds or reserve-based lending (RBL), to cover the outstanding balance of development costs over and above the two above. As a reminder, Xcite previously signed a $155m RBL facility agreement in June 2012, with drawdown subject to successfully completing a number of objectives during the 9/03b-7 EWT. This was based on expected 2P reserves at the time of c 116mmboe. Xcite would expect to secure a reserve-based facility well in excess of this given the subsequent increase in 1P reserves to the current 203mmbbl. While the overall funding package remains to be defined, Xcite has made it clear it does not intend to utilise equity for any additional funding.
Let's hope for the same strong p.m. showing today as per the last 3 days. A blue finish would be terrific but anything above 37.5 looks pretty bullish to me. What do our chartists out there say? I know scott our resident lunatic will agree today but probably disagree come Monday!
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