LONDON (Alliance News) - Xcite Energy Ltd on Monday reported results for the third quarter of 2015 which showed that its net loss narrowed year on year and that the cash on its balance sheet fell by more than half, as it continues "diligence and discussions" with potential field partners and funders.
The oil appraisal and development company, which has a portfolio of heavy oilfield assets in the northern North Sea in the UK, said it made a USD0.3 million net loss in the three months to September 30, compared with a net loss of USD4.3 million in the corresponding quarter the prior year.
Cash and cash equivalents fell to USD27.9 million at the end of September, from USD62.8 million at the same stage the prior year.
As well as its talks with potential partners and funders, Xcite said it is continuing with a technical assessment of the Bentley development in the North Sea with the UK Oil & Gas Authority.
The oil and gas team at Liberum Capital, an investment bank, said the third-quarter results contained "no surprises as management continues to progress the Bentley development in a difficult environment".
"The revisions to our forecasts are small. We have not made any significant changes to our Bentley assumptions and the oil price assumption has confirmed our NAV [net asset value] for Xcite at around 100 pence. This is our target price and, with the share price a long way south of this figure, with few financing issues short term and discussions with potential development partners ongoing, we reiterate our Buy recommendation," Liberum said.
Shares in Xcite were down 1.2% at 18.77 pence on Monday late morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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