Oil firm Xcite said today it was “making good progress” towards gaining approval of its plans to develop the UK North Sea Bentley field.
The Aberdeen-based firm said the approval process by the Department of Energy and Climate Change (DECC) should be in timing with the rig to be used on the field being ready for deployment and arrangement for finance for the project being agreed.
The Rowan Norway is undergoing final equipment testing, crew training and regulatory approvals in Dundee before being floated out to the heavy oil field, about 100 miles east of Shetland, with drilling still scheduled to start before the end of the year.
Xcite said: “Financing discussions continue to progress satisfactorily and the company’s objective is to conclude these in a consistent timeframe with approval by DECC of a field development plan for the Bentley field and the rig deployment.”
Announcing its third quarter results, the firm, which has yet to make any sales, said pre-tax losses in the three months to the end of September increased to £660,000, compared to £210,000 in the same period in 2010.
The firm had a cash balance of £50.8million as of September 30. Of that £37.6million was held in an account to pay for use of the rig.
It also has £76.95million available to draw on through a standby equity distribution agreement with US investment firm Yorkville Advisers.
As at September 30 it employed an average of 14 people, double the number from last year.