Xcite Energy yesterday closed on the issue of US$10 million of unsecured Loan Notes to a fund managed by West Face Capital Inc.
The funds will be used to provide contingency funding during the important Phase 1A work programme on the Bentley field.
The Loan Notes have an initial term of 236 days and, subject to West Face approval, may be extended by XEL for a further 360 days. The Loan Notes bear interest at 14% per annum payable in arrears on 31 March, 30 June, 30 September and 31 December in each relevant year and at maturity. Interest can be paid or rolled up into the principal amount of the Loan Notes at the Company’s discretion.
West Face is entitled to receive a maintenance fee equal to 1% of the outstanding principal amount of the Loan Notes 180 days from issue date and at maturity. The Company has paid a fee of US$0.2 million to a third party in connection with the initiation of this transaction.
Xcite Energy’s Bentley field is one of the largest undeveloped fields in the North Sea, containing some 550 MMstb in-place of 10°-12° API heavy oil. Following a highly successful flow test of the 9/3b-6Z well in December 2010, Xcite Energy are moving the field towards development. Further drilling and testing is being undertaken in 2012 which will leave well infrastructure in place for the development.
Xcite Energy holds and operates 100% of the Bentley field located in Block 9/3b (Licence P1078). The Licence was granted to XER under a Promote Licence in 2003 and converted to a Traditional Licence in 2005.
The Bentley field is located on the East Shetland Platform in the UK Northern North Sea, 8 km southeast of the Bressay Field (currently operated by Statoil), 15 km east of the Kraken Field (operator: Enquest) and 20 km north-northeast of the Bruce Field (operator: BP).
Subsea World News Staff , August 08, 2012