Xcite Energy is in a race against financial fall-out as it tries to avoid becoming the latest casualty amid the continued low oil price.
The company is facing a $139million bond repayment in June but is currently struggling to meet its obligations.
As reported in the Sunday Times, chief executive Rupert Cole has been looking for a financial partner but has not yet been successful.
The company’s stock has dropped to 16p, from a previous peak of £3.68 five years ago.
Both Iona Energy and First Oil have in recent months become victim to the lower for longer oil price.
Last month, the plug was pulled on First Oil by businessman Ian Suttie after failing to find a buyer.
Chancellor George Osborne is expected to reveal a fresh round of tax incentives for the North Sea in the budget this week.
Industry body Oil & Gas UK has urged the government to do more to support the North Sea oil and gas industry and help boost exploration and production.
Last month, the company revealed it had been given some breathing space to sort out its financial arrangements for its Bentley project in the UK North Sea.
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