Xcite upgrades Bentley field expectations

Friday's results for the six months to July from Xcite Energy showed a slight slide across all key figures, with shares down 1.4% in afternoon trading.

Net profits came in a £8.3 million, down from £10 million in the corresponding period, with basic earnings per share at 2.8p, down from 3.4p.

In the sparsely-worded announcement, the company attributed the profits to the sale of technical well data from the Bentley field for an initial $15 million (£9.6 million), plus £1.5 million from surplus equipment sales.

The exploration group was positive on the outlook for the field as "one of the largest proven, undeveloped oil fields in the UK North Sea". Xcite has increased its reserve estimates at Bentley by 65% to 909 million stock tank barrels, after having previously estimated of 550 million barrels in February last year. Costs did however rise due to the expense of developing the Bentley field.

Investor view

Interactive Investor discussion board users were more focused on the prospect of a potential takeover bid, and lamented the lack of updates. The group merely said that "discussions with potential farm-out partners and lending banks are ongoing". Cash balances currently stand at £24.9 million.

User 'Sabrage' summed up the general sentiment: "I am sure that the vast majority of us would not dream of selling because very good news could come at any time."