Xcite Energy plummets on concerns over capital
Xcite Energy, the North Sea focused oil company, has fallen dramatically this morning following an announcement that it has "re-configured its approach" to development of the Bentley field.
Xcite Energy, the North Sea focused oil company, has fallen dramatically this morning following an announcement that it has "re-configured its approach" to development of the Bentley field.
The re-configuration (essentially a rescheduling of drilling operations) follows feedback from the Department for Energy and Climate Change on the financial viability of the project.
According to Sharecast sources, the DECC is thought to be concerned over Xcite's access to capital. For understandable reasons, the UK Government is not keen on having half-completed oil wells in the North Sea.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Xcite maintains "first oil" is still expected in 2012 but there are also murmurs among analysts that this is an ambitious, and possibly unrealistic, timetable.
In a separate announcement Xcite said it had made use of a £2m equity line from the alternative investment manager Yorkville Advisors. The move will see 1,814,059 new shares issued, bringing the total to 190,810,070. This equates to a share dilution of just under 1%.
At 13:39am Xcite shares were down 16% at 94p. In the year to date the firm's share price has plunged 75%.
BS
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Taking control of your business expenses with Wallester
Why Wallester Business is your cost-effective solution to help you take financial control of your business
By MoneyWeek Published
-
Four AI ETFs to buy
Is now a good time to buy AI ETFs? We examine four AI ETFs that investors might want to add to their portfolio
By Dan McEvoy Published