Xcite Energy investors continue to worry over Bently

published 12 December 2011

Following demand from its shareholders for more information, Xcite Energy has given an update on the development of the Bently field, about which the Department for Energy and Climate Change (DECC) has had concerns.

At the start of December, the firm announced that it had "re-configured its approach", following feedback from the DECC on the financial viability of the project.

According to Sharecast sources, DECC is thought to be concerned over Xcite's access to capital.

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In the most recent statement the firm said: "We recognise that the announcement of 1 December comprised an evolution of our field development plans from those set out earlier in the year. We believe these changes provide the company with a viable and more financially efficient solution to achieve our shared objective of commercialising the Bentley field.

"We are currently waiting for the DECC response with respect to the Field Development Plan (FDP). We are unable to provide definitive guidance on when this will be received, but based upon our positive, on-going dialogue with DECC, the company is expecting to receive the necessary response shortly.

"This will allow us to move forward with the reconfigured development plan and to deliver Phase 1A on Bentley, which includes an expected First Oil date in the first half of 2012."

The company is also optimistic that it will be able to convert the 87m barrels of contingent resources to probable reserves in due course, giving the firm around 115m barrels of probable reserves.

The share price fell 3.57% to 81p by 13:37.