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 for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
Which investments can I hold in a stocks and shares ISA – and which ones are banned?
HMRC has a list stating which investments are allowed in ISAs, but sometimes investors, and even ISA providers, get confused by the rules. Here’s what you need to know when picking your investments.
By Ruth Emery
-
Review: Andronis Minois and Andronis Arcadia – two Greek island idylls
Travel Andronis Minois on Paros and Andronis Arcadia on Santorini are two beautiful, authentic hotels on two different islands in Greece
By Nicole García Mérida