Slow progress at Xcite Energy

Xcite Energy says it made good progress in the first half toward submitting a field development plan for its Bentley project in the North Sea. But it's slow-going and there was not a great deal else to report in the oil company's half-year update.

"We have continued to make good progress towards our near term objective of the submission of the field development plan, with expansion of the development group, continuing engineering work and constructive contract discussions," said chief executive Rupert Cole.

Talks with additional development partners, including drilling contractors and services companies, for the Bentley development group are ongoing, the company added. And Xcite, which agreed a $140 million (£83.9 million) financing package in June, is trying to tie down other alternative sources of financing.

"With much to do in the coming months, we shall keep stakeholders updated at each step of the way," said Cole.

Xcite, which is still expected to submit the field development plan (FDP) for the 257 million barrel of oil equivalent (mmboe) Bentley project at the end of the year, had £41.5 million of cash on 30 June.

Broker and nominated advisor Liberum Capital decided not to publish any fresh forecasts Thursday, implying little has changed since its last piece of research back in April, just after the full-year numbers.

Then, Liberum cut its fair value assumption for Xcite shares (currently trading at 65p) to 254p per share. Edison, which expects FDP approval in 2015 and first oil in 2018, calculates a core net asset value of 146p.

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