Oil explorer raises £31m to develop North Sea field

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Xcite Energy, the Aberdeen-based oil explorer, has issued $50 million (£31m) of loan notes to West Face Capital, a Canadian investment manager, to raise cash for its North Sea plans.

The Aim-quoted company will use the money to develop its Bentley field, where the Rowan Norway drilling rig is sinking an appraisal well.

The loan notes carry 14 per cent interest each year.

Analysts at Fox Davies said: “The issuing of loan notes should add contingency funds and thus strengthen the company’s cash position during the phase 1A work programme on its Bentley field.

“The fact that they now have enough to provide themselves with flexibility for the next 12 to 15 months will hopefully provide a springboard for the next phase of growth.”