Xcite will explore the new prospects over an initial four year licence term, on a ‘drill or drop’ basis.

Xcite Energy (LON:XEL, CVE:XEL) has confirmed it is expanding its North Sea portfolio.

The company has been awarded additional acreage, containing four significant prospects, through the UK’s 27th offshore licensing round.

It will explore the new prospects over an initial four year licence term, on a ‘drill or drop’ basis.

The company says the additional acreage enhances the development potential of the greater Bentley area, and it is part of the company’s strategy for growth.

"The offer of these Blocks is a welcome expansion of the Xcite portfolio,” chief executive Rupert Cole said in a statement.

"Whilst we remain focused on the development of the Bentley field, these additions clearly demonstrate our intent to grow Xcite into a significant North Sea player."

This expansion comes as the development of the Bentley oilfield moves to a crucial stage. The company recently completed the Phase 1A programme and it is now preparing to embark upon the next phase which will kick-start commercial oil production