Xcite Energy, the oil company looking to develop the Bentley field in the North Sea, says it has agreed a loan facility with a group of lenders that ought to pay for much of the project.
The $155m facility has a five year term and is dependent on a series of project milestones - all but one of which Xcite claims to have completed.
The one outstanding condition is for a flow test, which will give a good guide on how quickly the oil can be extracted from under the sea bed. Xcite says this test will start "in the coming weeks".
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
Now the loan is in place Xcite must complete its funding plan for Bentley and win the all important approval from the Department for Energy and Climate Change.
The firm makes clear it is considering a possible farm out for an interest in Bentley, or other debt instruments to make sure it has the necessary financial firepower.
At 9:59 the stock had gained 0.6%.
BS
-
8 of the best converted properties for sale nowThe best converted properties for sale – from an apartment in the former Hartley’s Jam factory on London’s Southbank, to a converted 18th-century mill in Itteringham, Norfolk
-
How taking a two-year career break could leave a £26k hole in your pensionCareer breaks are increasingly common but it is important to take steps to protect your pension, as gaps compound over time
