Xcite speaks out to reassure nervous investors

XCITE Energy, the Aberdeenshire-based oil explorer, yesterday took the unusual step of issuing a statement responding to shareholder concerns over a share price fall.

The firm said it had been contacted by a number of investors seeking more information following an update a fortnight ago on its Bentley field in the North Sea.

Shareholders “expressed concern” over the fall in its market value since the announcement that it had changed its plans for the development of the field following the government’s response to its initial plans.

Shares in Xcite have lost more than three-quarters of their value since the beginning of the year when they hit almost 400p as excitement mounted over the potential of Bentley. A statement from Xcite yesterday stressed the directors and management team remain “highly committed” to the successful commercial development of the field.

“Bentley remains a complex project, which we are striving to bring to fruition as efficiently as possible in challenging economic circumstances. We have confidence in the outcome and ask for the patience and support of shareholders while we progress the various initiatives,” said the company.

Xcite said it hoped that a response to its changed field development plan would be received from the Department of Energy and Climate Change shortly.

“We shall continue to provide timely news updates based on the regulatory environment that governs our public listing status,” it said, adding that the company was now at a “decisive stage” with drilling planning for the first phase of development on schedule. Despite the statement, shares in Xcite fell 4p yesterday to 80p.