Xcite Energy moved a step closer to developing its promising Bentley heavy-oil field in the North Sea by signing a £155m loan facility with a consortium of banks. The loan remains subject to several conditions, such as positive results from the Phase 1A flow test, which should start soon. Yet the share price fails to reflect the chances that the tests will be successful, so the shares are still worth buying.
IC TIP:
Buy
at
79p
The money will go a long way toward bringing the field to commercial production, with Xcite now looking to provide the balance of the funds needed by farming out an appropriate interest or through alternative methods of finance.
