1 Nov 2010 07:00
THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES
TSX-V, LSE-AIM: XEL
November 1, 2010
Xcite Energy Limited
("Xcite Energy" or the "Company")
Financial Results for the 3 Month Period Ended September 30, 2010
Xcite Energy, a developer of heavy oil assets in the UK North Sea, today announces its unaudited financial results for the 3 month period ended September 30, 2010.
Highlights
v The 9/3b-6 well has now spud and an update on the excellent results of the pilot well was issued on October 25, 2010. Management believes this confirms that an upside structure is present in the eastern half of the reservoir, significantly increasing the volume of oil in place.
v UK 26th Offshore Licence Round award to Xcite Energy Resources Limited over Blocks 9/3c and 9/3d, thereby enhancing the development potential of the Block 9/3 area containing the Bentley field.
v Net assets up to £52.9 million as at September 30, 2010.
v Cash balances of £27.8 million as at September 30, 2010.
v Gross funding raised of circa £5.8 million in the 3 month period.
v Additional gross funding raised of circa £3 million since balance sheet date from draw down on Yorkville standby equity line. Balance of £17 million still available.
v Additional gross funding raised of circa £0.4 million from the exercise of share warrants and share options.
Richard Smith, Xcite Energy Chief Executive Officer commented:
"An excellent few months on all fronts, with the 9/3b-6 pilot well confirming that we have been conservative in our predictions for the Bentley field thus far. With the upside reservoir structure now confirmed and the 100% net to gross oil column, the location selection for the horizontal well test is an outstanding piece of planning by the team. We look forward to the next few weeks with high expectations."
The Company's unaudited Financial Results for the 3 Months Ended September 30, 2010 can be found at the following link:
http://www.rns-pdf.londonstockexchange.com/rns/3245V_-2010-10-31.pdf
ENQUIRIES:
Xcite Energy Limited |
+44 (0) 1330 826740 | |
Richard Smith | Chief Executive Officer | |
Rupert Cole | Chief Financial Officer | |
Arbuthnot Securities Limited (Nomad and Broker) |
| +44 (0)20 7012 2000 |
Antonio Bossi | Director | |
Pelham Bell Pottinger | +44 (0) 20 7861 3232 | |
Mark Antelme Henry Lerwill
| Director |
|
Paradox Public Relations | +1 514 341 0408 | |
Jean-Francois Meilleur | Consultant | |
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.
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 October 26, 2010 and in the annual Management's Discussion and Analysis for Xcite Energy dated March 24, 2010 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.