Xcite Energy slumps as talks with farm-out partners continue

29th Nov 2013 07:22

North Sea-focused oil appraisal and development firm Xcite Energy disappointed investors on Friday after saying that talks with potential farm-out partners and lenders are still ongoing regarding its flagship project, the Bentley oil field.The AIM-listed group has current interests in six blocks in the UK North Sea but is mainly focused on bringing the Bentley field into commercial production.The company is yet to record any revenues this year, compared with maiden revenues of £13.3m generated in 2012 through the sale of 149,000 barrels of Bentley crude to a major refiner in Europe.Nevertheless, Xcite earned £0.9m in net profit during the three months to September 30th, compared with a loss of £0.6m during the same period the year before, arising from unrealised foreign currency gains.The firm has now made a total of £9.6m in net profit over the first three quarters of 2013, up from £0.8m in 2012. This is mainly due to the £8.3m earned from the sale of technical well data to a third party and the disposal of surplus oilfield equipment during the first half.However, there was very little new information in the company's third-quarter results, as the company continues to look for a "suitable and robust partner for the Bentley development".Chief Executive Rupert Cole said: "We have an understanding of the key investment drivers for Bentley and will continue to work diligently towards delivering a result to create value for all parties."During the third quarter, Xcite submitted an environmental statement for the Bentley field development plan to the Department of Energy and Climate Change. It is currently addressing the comments received and will only submit a final development plan once the complete development package, including funding, is finalised, it said.The stock sank sharply in early trade, down 17.19% at 91.5p in the opening minutes.BC