Xcite Energy (XEL) has posted a net loss of £3.2m for 2014, while revealing a £25.7m net cash outflow during the year. The cash balance at the year-end was £32.5m. But funding remains the key concern for shareholders in the North Sea driller. Management is engaged in discussions with potential co-venture partners for its flagship Bentley field, which has proven and probable (2P) reserves of 257m barrels.
Commercialising the project has become more difficult due to the steep fall in Brent crude prices. The company has delayed filing a Field Development Plan for the field, but it signed Memoranda of Understanding with a number of high-profile development contractors, in addition to agreements with Statoil, Shell (RDSB) and EnQuest (ENQ) to evaluate potential operational synergies with neighbouring fields. Midway through the year, Xcite bolstered its balance sheet through the issue of a $135m two-year bond and a $5m private placement of ordinary shares.
