Xcite’s shares to offset debts

Xcite Energy enjoyed a small share price recovery after it agreed a deal with owners of its £100million debt pile.

The North Sea explorers' shares closed 85% higher to 2.22p on Friday despite the agreement with bond holders set to nearly wipe out shareholders' value in the firm.

Yesterday, Xcite said 100% of the value of the outstanding bonds – worth $ 135million (£104million) would be exchanged for 98.5% of the enlarged share capital of the company. The firm said its proposals were approved unanimously.

Xcite, which is headquartered in Surrey, but has its operations base

“Enjoyed a small share price recovery after it agreed a deal”

in Aberdeen, has been struggling to sort out its finances to support its flagship Bentley project in the UK North Sea. The company has been in negotiations with its lenders since December.

Meanwhile, Canadian firm North Sea Energy said Premier Oil have informed the Bagpuss joint venture of its plans to resign as operator of the licence by the end of the year.

Premier are also said to have agreed in principle to sell their 40.1% stake in Bagpuss to ReachHalibut – a newly formed firm based in Aberdeen – subject to approval from partners and the Oil and Gas Authority (OGA).

InAugust, Premier Oil revealed it had made a “significant" discovery at the Bagpuss prospect.

The company said well 13/25-1, on the Halibut Horst in the Outer Moray Firth, reached a total depth of 1,532 feet (TVDSS) in granite basement.