Heavy oil appraisal and development company Xcite Energy toasted a year of progress on many fronts yesterday as it reported a swing into the black.
It said it had expanded its resource base, substantially increased reserves, secured an extension for its North Sea Bentley licence, advanced its development plan for Bentley, gained short-term financial stability and progressed longer-term financing options.
Xcite, which has its operational base in Aberdeen, also said it had started 2014 with “real purpose”, thanks to confirmation of existing reserves and financial projections despite rising costs and forecasted lower oil prices.
Chief executive Rupert Cole added: “We have also received confirmation of a material licence extension on Bentley until the end of 2016.”
Xcite continues to move ahead with its plans for Bentley, south-east of Shetland.
The field was discovered in 1977 and is wholly-owned by Xcite, which successfully applied for one of the industry’s Promote licences – designed to encourage new entrants – in 2003 and converted this to a traditional licence in 2005.
Results for the company yesterday showed net profits of £6.6million for 2013, compared with losses of £1.7million in 2012.
The firm’s proved plus probable oil reserves are now put at 257million barrels, up from 116million-250million barrels in April 2013.
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