Xcite Energy achieves first annual revenue

Xcite Energy's Chief Executive Officer Rupert Cole said 2012 was an 'excellent year' for the oil and gas company following the completion of a 250m-dollar project in the UK's North Sea.

The group achieved its first annual revenue after the conclusion of the of pre-production extended well test on the Bentley field.

It produced more than 149,000 barrels of Bentley crude which was sold to a major refiner in Europe, contributing to revenues for the year of £13.3m. The oil field developer made a £1.7m net loss, compared to a profit of £0.1m in 2011.

Xcite has signed a $155m reserves based lending facility with a group of lending institutions to develop the Bentley field further.

The prospect helped strengthen the company's balance sheet with cash at year end of £25.6m.

"2012 has been an excellent year for Xcite, with the successful, and, most importantly, safe, conclusion of a $250m project in the North Sea, on time and on budget, which is a testament to the skill and experience of our team," said Cole.

"The entire team has worked tirelessly during the well test and in the time since its conclusion in September last year, to re-engineer the reservoir model in order to deliver an updated field development plan based on the excellent data and results from the test."

He said the company remains on track to deliver the new competent persons report for the Bentley heavy oil field in the early part of this year.

Shares rose 0.67% to 112.50p at 08:30 on Tuesday.

RD