ABERDEENSHIRE, UNITED KINGDOM--(Marketwire - May 25, 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
25 May 2012
Xcite Energy Limited
("Xcite Energy" or the "Company")
Results for the 3 Month Period Ended 31 March 2012
Xcite Energy is pleased to announce its results for the 3 months ended
31 March 2012.
Highlights
- Upgrade in oil reserves of the type 1P, 2P and 3P for the core
area of the Bentley field to 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 cash of GBP78.9 million as at 31
March 2012, following net new equity capital financing of GBP36.4
million in the period.Included in cash balances are amounts held
in escrow of GBP73.9 million relating to the Bentley Phase 1A
work programme.
- The Rowan Norway jack-up rig commenced the Phase 1A work programme
on the Bentley field; the 9/3b-7 well was spudded on 18 March
2012, with good progress being made on the Phase 1A work
programme to date.
- Since the period end, $50 million additional funding has been
raised in respect of unsecured loan notes issued, as announced on
5 April 2012.
- Since the period end, contracts have been awarded for the Scott
Spirit tanker planned to be used as the in-field storage and
offtake facility for Bentley crude oil during the Phase 1A, and
for the installation of the oil export pipeline of approximately
1.8 km between the Rowan Norway jack-up rig and the Scott Spirit.
The following tables summarise the Group's performance in the three
months ended 31 March 2012 and the comparatives for the 3 months ended
31 March 2011. The Group had no trading revenue in any of these
periods.
3 months 3 months
ended ended
31 March 31 March
Income Statement Information 2012 2011
GBPm GBPm
Net profit/(loss) (0.05) (0.01)
Earnings/(loss) per share (basic) in pence (0.0p) (0.0p)
Earnings/(loss) per share (diluted) in (0.0p) (0.0p)
pence
3 months ended 3 months ended
31 March 31 March
Cash Flow Information 2012 2011
GBPm GBPm
Net cash flow from operations 3.5 (17.9)
Net cash flow from investing activities (25.1) (2.7)
Net cash flow from financing activities 36.4 14.9
As at As at As at
31 March 31 December 31 March
Balance Sheet Information 2012 2011 2011
GBPm GBPm GBPm
Total assets 192.6 152.8 99.2
Cash and cash equivalents 78.9 64.1 30.2
Current liabilities 13.0 9.5 5.0
Long term liabilities (deferred tax) 0.5 0.5 0.5
Total net assets 179.2 142.7 93.7
The Company's unaudited Financial Results for the 3 Months Ended 31
March 2012 can be found at the following link:
http://www.rns-pdf.londonstockexchange.com/rns/1348E_1-2012-5-25.pdf
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 andNomad) 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
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.
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.
Oriel Securities, 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.
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.
Cautionary Language
The independent reserves and resources audit of the Company Assets
effective 31 December 2011, as audited by TRACS in compliance with
National Instrument 51-101 - Standards of Disclosure for Oil and Gas
Activities and in accordance with the Canadian Oil and Gas Evaluation
Handbook, 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.
Prospective resources are those quantities of petroleum estimated, as
of a given date, to be potentially recoverable from undiscovered
accumulations by application of future development projects.
Prospective resources have both an associated chance of discovery and a
chance of development. Prospective resources are further subdivided in
accordance with the level of certainty associated with recoverable
estimates assuming their discovery and development and may be
sub-classified based on project maturity. There is no certainty that
any portion of the prospective resources will be discovered. If
discovered, there is no certainty that it will be commercially viable
to produce any portion of the prospective resources. The principal
risks and uncertainties associated with the recovery of the prospective
resources which prevent them from being classified as contingent
resources are that they have not yet been confirmed by appraisal
drilling.
Statements relating to "reserves" or "resources" are deemed to be
forward-looking statements or information, as they involve the implied
assessment, based on certain estimates and assumptions, that the
resources and reserves described can be profitable in the future. There
are numerous uncertainties inherent in estimating quantities of proved
reserves, including many factors beyond the control of the Company. The
reserve data included herein represents estimates only. In general,
estimates of economically recoverable oil reserves and the future net
cash flows therefrom are based upon a number of variable factors and
assumptions, such as historical production from the properties, the
assumed effects of regulation by governmental agencies and future
operating costs, all of which may vary considerably from actual
results. All such estimates are to some degree speculative and
classifications of reserves are only attempts to define the degree of
speculation involved. For those reasons, estimates of the economically
recoverable oil reserves attributable to any particular group of
properties and classification of such reserves based on risk of
recovery and estimates of future net revenues expected therefrom,
prepared by different engineers or by the same engineers at different
times, may vary substantially. The actual production, revenues, taxes
and development and operating expenditures of the Company with respect
to these reserves will vary from such estimates, and such variances
could be material.
Consistent with the securities disclosure legislation and policies of
Canada, the Company has used forecast prices and costs in calculating
reserve quantities included herein. Actual future net cash flows also
will be affected by other factors such as actual production levels,
supply and demand for oil and natural gas, curtailments or increases in
consumption by oil and natural gas purchasers, changes in governmental
regulation or taxation and the impact of inflation on costs.
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
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