ABERDEENSHIRE--(Marketwire - March 23, 2012) -
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART
DIRECTLY OR INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO
WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF
SUCH JURISDICTION
TSX-V, LSE-AIM: XEL
23 March 2012
Xcite Energy Limited
("Xcite Energy" or the "Company")
Results for the Year Ended 31 December 2011
Xcite Energy announces its results for the year ended 31 December 2011
and progress in 2012 to date. The key highlights are as follows:
Highlights
- Achievement of oil reserves of the type 1P, 2P and 3P for the core
area of the Bentley field of approximately 96 MMstb, 116 MMstb and 140
MMstb, respectively, with NPV10 (after tax) for the core area of $1.076
billion, $1.464 billion and $1.921 billion on a 1P, 2P and 3P basis,
respectively (see "Cautionary Language" below for a general explanation
of the method and assumptions used in these calculations).
- Strengthened balance sheet, with net new equity capital financing of
GBP62.7 million in 2011. Cash balance at year end of GBP64.1 million,
with an additional net GBP26.4 million raised since the year
end. Included in cash balances at the year ended 31 December 2011 are
amounts held in escrow of GBP47.1 million relating to the Bentley Phase
1A work programme.
- Department of Energy and Climate Change approvals to drill and
produce the planned Bentley field 9/3b-7 and 7Z wells under the Well
Operations Notification System, the Petroleum Operations Notice and the
Oil Pollution Emergency Planning.
- Rowan Norway jack-up rig commenced Phase 1A of the work programme on
the Bentley field, with 9/3b-7 well spudded on 18 March 2012.
The following tables summarise the Group's performance in the year to
31 December 2011 and the comparatives for the year to 31 December 2010
and the year to 31 December 2009. The Group had no trading revenue in
any of these periods.
Year ended Year ended Year ended
31 December 31 December 31 December
Income Statement Information 2011 2010 2009
GBPm GBPm GBPm
Net profit/(loss) 0.1 (2.4) (0.9)
Earnings/(loss) per share (basic) 0.1p (1.9p) (1.4p)
in pence
Earnings/(loss) per share (diluted) 0.1p (1.9p) (1.4p)
in pence
Year ended Year ended Year ended
31 December 31 December 31 December
Cash Flow Information 2011 2010 2009
GBPm GBPm GBPm
Net cash flow from operations (12.6) 20.9 (1.5)
Net cash flow from investing (22.0) (39.3) (0.5)
activities
Net cash flow from financing 62.8 52.6 1.9
activities
As at As at As at
31 December 31 December 31 December
Balance Sheet Information 2011 2010 2009
GBPm GBPm GBPm
Total assets 152.8 102.8 24.8
Current liabilities 9.5 23.7 0.2
Long term liabilities (deferred 0.5 0.5 0.5
tax)
Total net assets 142.7 78.6 24.1
The Company's full Financial Results for the Year Ended 31 December
2011 can be found at the following link:
http://www.rns-pdf.londonstockexchange.com/rns/9245Z_-2012-3-22.pdf
The Company has filed copies of its audited financial statements and
management discussion and analysis in respect thereof for the year
ended 31 December 2011. These documents can be found for viewing by
electronic means on the System for Electronic Document and Analysis
Retrieval at www.sedar.com
ENQUIRIES:
Xcite Energy Limited +44 (0) 1483 549 063
Richard Smith Chief Executive Officer
Rupert Cole Chief Financial Officer
Oriel Securities +44 (0) 207 710 7600
(Joint Broker and Nomad)
Emma Griffin Partner
Michael Shaw Partner
Morgan Stanley +44 (0) 207 425 8000
(Joint Broker)
Andrew Foster Managing Director
Pelham Bell Pottinger +44 (0) 207 861 3232
Mark Antelme Director
Henry Lerwill Account Director
Paradox Public Relations +1 514 341 0408
Jean-Francois Meilleur Consultant
Cautionary Language
Oriel Securities Limited, which is authorised and regulated in the
United Kingdom by the Financial Services Authority, is acting
exclusively for Xcite Energy and for no one else in connection with the
subject matter of this announcement and will not be responsible to
anyone other than Xcite Energy for providing the protections afforded
to its clients or for providing advice in connection with the subject
matter of this announcement.
Morgan Stanley, which is authorised and regulated in the United Kingdom
by the Financial Services Authority, is acting exclusively for Xcite
Energy and for no one else in connection with the subject matter of
this announcement and will not be responsible to anyone other than
Xcite Energy for providing the protections afforded to its clients or
for providing advice in connection with the subject matter of this
announcement.
The independent reserves and resources audit of the Company Assets
effective 31 December 2011, as audited by TRACS is based on forecast
and prices effective as at 31 December 2011 from McDaniel & Associates'
October 2011 Brent oil forecast, less a 12% discount for Bentley crude
(www.mcdan.com).
The calculation of the NPV10 (after tax) for the core area disclosed
above takes into account the following: (a) UK Corporation Tax is
charged at the rate of 30% on net taxable income; (b) UK Supplemental
Corporation Tax ("SCT") is charged at the rate of 32% on net taxable
income; and (c) heavy oil allowances of up to GBP800 million have been
applied to offset the SCT to the extent possible.
Glossary"1P" means proved reserves."2P" means proved plus probable
reserves."3P" means proved plus probable plus possible reserves. Possible
reserves are those additional reserves that are less certain to be
recovered than probable reserves and there is a 10% probability that
the quantities actually recovered will equal or exceed the sum of
proved plus probable plus possible reserves."MMstb" means millions stock
tank barrels."NPV10" means net present value in money of the day using a
10% forward
discount rate, which values do not represent fair market value."$" means US
dollars.
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 26 October
2010 and in the annual Management's Discussion and Analysis for Xcite
Energy dated 22 March 2012 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)
accepts responsibility for the adequacy or accuracy of this release.
This information is provided by RNS
The company news service from the London Stock Exchange
END
