Xcite secures loan for North Sea development

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".

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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