XCITE ENERGY LIMITED : Results for 3 & 9 Month Periods Ended 30 September [QRT]

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TSX-V, LSE-AIM: XEL

29 November 2013

Xcite Energy Limited

("Xcite Energy" or the "Company")

Results for the 3 and 9 Month Periods Ended 30 September 2013

Xcite Energy announces its unaudited, consolidated results for the 3 and 9 month periods ended 30 September 2013.

Highlights

·     Discussions with potential farm-out partners and lending banks ongoing.

·     The terms of a refinancing of the Company's unsecured loan noteshave been agreed subject to final documentation.

·     Submission of the Environmental Statement for the Bentley field development plan to the Department of Energy and Climate Change.

·     Entered into a Memorandum of Understanding with AMEC Group Limited for future cooperation to support the development of the Bentley field.

·     Sale of Bentley extended well test data for $15 million.

·     Revised Reserves Assessment Report for the Bentley field updated 2P Reserves to 250 million stock tank barrels ("MMstb") (from 116 MMstb), with a further 46 MMstb of Contingent Resources in April 2013.

·     Net profit in the current period of £0.9 million arising from unrealised foreign currency gains.

·     Cash balance of £22.0 million as at 30 September 2013.

Rupert Cole, CEO of Xcite Energy commented:

"It has been a very busy and successful 12 months for Xcite, in which we have appraised a major, strategic asset and delivered clear value for Xcite, as well for others in the industry. We are now engaging, through data sharing and a collaborative approach, in the process of finding a suitable and robust partner for the Bentley development.

We have an understanding of the key investment drivers for Bentley and will continue to work diligently towards delivering a result to create value for all parties."

Outlook

The Company continues to progress the detailed work programme on Bentley, focused on optimising the development plan and schedule in preparation for project execution.  Critical long lead items have been identified and are being sourced through a structured procurement process and strategic alliances.  

To support the development of the Bentley field, Xcite Energy is seeking a suitable farm-out partner with an aligned strategy and the required financial capacity.  The initial phase has provided the Company with the opportunity to share the substantial amount of information collected on the field with interested parties for the first time, and engage in a number of on-going discussions.  

The process so far has reinforced some of the key drivers currently affecting the decision-making processes for investment in the North Sea basin, including scheduling commitments and resources. It has also highlighted key attractions of Bentley and the selected development concept, as well as potential areas for further investigation and optimisation through a collaborative approach between a farm-out partner and the Company, to deliver the best outcome for all stakeholders.  Discussions with potential partners are continuing.

The re-assessment and potential increase of the Reserves Based Lending facility has progressed satisfactorily, with significant interest having been demonstrated by existing and new banking institutions following the successful well test in 2012. This work will continue in parallel with the discussions with potential field development partners.

The Bentley field Environmental Statement was submitted to DECC on 2 July 2013 for public consultation, which commenced on 12 July 2013 and concluded on 9 August 2013, and the Company is in the process of addressing the comments received. A formal Field Development Plan will only be submitted once the complete development package, including funding, is finalised.  

The terms of a refinancing of the Company's US$60 million unsecured loan notes have been agreed subject to final documentation, which is expected to be concluded as soon as practicable.

The following tables summarise the financial performance of Xcite Energy and Xcite Energy Resources Limited in the 3 and 9 months ended 30 September 2013 and the comparatives for the 3 and 9 months ended 30 September 2012.  

The Company's unaudited Financial Results for the 3 and 9 Month Periods Ended 30 September 2013 can be found at the following link:

http://www.rns-pdf.londonstockexchange.com/rns/2331U_1-2013-11-28.pdf

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 annual Management's Discussion and Analysis for Xcite Energy dated 25 March 2013 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) acceptsresponsibility for the adequacy or accuracy of this release.