Xcite Shares Soar on Statoil Bid Speculation (UK)

March 14, 2013

Shares of Xcite Energy Ltd today jumped 3.00% on speculation that Norway’s oil giant Statoil is thinking of launching a 2 GBP per share takeover offer, Daily Mail has reported. According to Daily Mail, Statoil is interested in the company’s Bentley field.

The company did not immediately reply to an e-mail seeking comment, sent by Offshore Energy Today.

Xcite Energy, a UK-based oil and gas exploration company owns a 100% in the still undeveloped Bentley field. The heavy oil reservoir is located 160 kilometres east of the Shetland Islands on the western edge of the Viking Graben, covering an area of approximately 70 square kilometres. The field has been described as one of the largest remaining, undeveloped North Sea oil fields.

The company has recently said that it is considering a range of options to provide the balance of the funding required to commence the Phase 1B development at Bentley including, but not limited to, farm-out, other industry participation, convertible debt instruments and equity financing.

As part of preparations for discussions with potential industry partners, Xcite has recently appointed Jefferies International Limited and N M Rothschild & Sons to act as advisers to the company in this process.