Xcite Energy (LSE: XEL) published its results for the three- and nine-month periods ending 30 September this morning, in which it reported a 2.7mloss for the three month period to the end ofSeptember, owing tounrealised foreign exchange losses caused bya strengthening US dollar.
The share price of the North Sea-focussedheavy oil appraisal &development companyiscurrently up 1.1%in trading so far today.
The companyhighlighted various partnerships and collaboration agreements signed during the year-to-date, including:
- aMemorandum of Understanding signed with China Oilfield Services Limited, which sets out the principles for the provision and operation of a new-build, harsh environment, jack-up drilling rig;
- an agreementsigned with Statoil and EnQuest to share information to evaluate the potential benefits of a future shared gas import pipeline;
- an agreement signed with Statoil and Shell, which provides for thesharing of information to evaluate potential synergies and collaboration between the Bentley and Bressay fields.
Xcite also reported that it had raised$140mvia the issue of senior secured bonds and new equity share capital, and had repaid$80m of unsecured loan notes. The company hadcashbalance of 38.7m,as of the end of September.
Commenting on the results, CEO Rupert Cole said
Offshore oil and gas developments are major and complex engineering projects, which require detailed planning and execution for successful delivery. We believe that our strategy to work with our selected development partners early in the project life, in a collaborative partnership model, with aligned incentives to deliver the project safely, on-time and on-budget, is an innovative and appropriate strategy for addressing the key challenges currently facing our industry.
As we look forward to formalising the relationship with our partners over the coming months, we remain committed to delivering value for all stakeholders and firmly believe that this collaborative strategy is the right approach in the current market environment.
At 45p, Xcites share price has slumped by 53% since the start of the year, compared with an 18% decline in the AIM index. And over the longer term Xcite is only just beating its index, with a share price gain of 8.5% over the past five years, during with time the AIM 100 has risen 7.25%.
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Jon Wallis has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
