Ross Davidson, 27th June 2012
Shares in Aberdeen-based oil and gas firm Xcite Energy traded as low as 35p yesterday despite closing at 72.5p.
It came on the day the firm said it had awarded senior employees and management a combined 4.7million share options in recognition of progress made on the Bentley heavy-oil field in the North Sea this year. Xcite said certain members of the Bentley field project team and non-board management had received the options, which vest immediately and have an exercise price of 74p.
The company announced a £99million loan facility to help pay for work on the Bentley development last week but David Barclay, divisional director for investment manager and financial-planning specialist Brewin Dolphin in Aberdeen, said shares in the company remained volatile despite greater clarity on its financing.
“Such volatility can from time to time be exacerbated by technical considerations such as we experienced in early trading on Tuesday, where price shifting by market makers triggered an intraday auction and a small line of 550 shares changed hands on the order book at around 35p.
“A significant proportion of Xcite’s shares are held by private investors, as opposed to institutions. This again can fuel volatility.”