Update: Bentley funding key

The next few months are critical to the future of Xcite. $135m of bonds mature at the end of June 2016 and there is no visibility yet that they can be refinanced, or at what cost. At the same time, Xcite has done an excellent job of driving down costs for its Bentley development, both through cost deflation and optimisation of the project. With improving fiscal terms, the Bentley project is potentially more robust than ever before and is resilient across a wide range of commodity prices. However...

Outlook: Critical year ahead

2015 is a critical year for Xcite and its shareholders. Having seen its Bentley development delayed, the company is taking an innovative approach, engaging early with major service contractors to put in place a development group that would get it through FID as well as reduce execution risk to both cost and schedule. With the consortium complete, we examine how potential terms could affect returns, concluding there is strong upside potential for all parties, Xcite and contractors alike, with an ...

Institutional Comment: Daily comment

Update: Pre-FDP funding platform secured

Xcite has announced a $140m financing package, the majority in the form of two-year senior secured bonds. This provides a stable platform on which it can conduct its ongoing negotiations with service providers and potential farm-out partners to fund the Bentley development. We view a closer working relationship with Shell and Statoil as positive overall, confirming the value of Xcite’s Bentley well data. Our core NAV remains broadly flat at 146p, with a farm-out still the main driver of potent...