Xcite gets tanker but still waiting on approvals

Xcite Energy, the North Sea focused oil company, has managed to secure a storage tanker as it battles to bring its Bentley field to full production.

Xcite is under mounting pressure from its shareholders over when (or whether) it will extract some of the 115m barrels of probable reserves claimed for the site.

The problem for Xcite is that, according to ShareCast sources, the UK government is worried the company does not have access to enough capital to complete the project.

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Today's announcement, that a letter of intent has been signed with Teekay Shipping Norway for the provision of a tanker, has seen Xcite's shares climb 6% in morning trading.

Exploration and Development Director, Steve Kew, says the move "serves to highlight the concurrent activity that is underway whilst we await the necessary approvals from DECC."

But until those approvals are won from the Department for Energy and Climate Change investors will be holding their breath.

Xcite says it hopes to enter into a definitive agreement for one of Teekay's "dynamically positioned shuttle tankers" within three months.

BS