The next few months are critical to the future of Xcite. $135m of bonds mature at the end of June 2016 and there is no visibility yet that they can be refinanced, or at what cost. At the same time, Xcite has done an excellent job of driving down costs for its Bentley development, both through cost deflation and optimisation of the project. With improving fiscal terms, the Bentley project is potentially more robust than ever before and is resilient across a wide range of commodity prices. However, with depressed equity and debt markets and cautious industry sentiment, securing development funding in addition to the refinancing of the bonds remains a daunting challenge. Our risked NAV of 74p/share, reflecting a farminee earning a 25% IRR, dramatically deteriorates towards zero if funding partners require better returns or if substantial equity is required to refinance the current bonds.