Xcite Energy Limited (XEL) is a heavy oil appraisal and development company, with current interests in three licence blocks in the UK North Sea, all of which are held with 100% working interests through its wholly-owned UK subsidiary, Xcite Energy Resources Limited (XER).

Its primary focus is in bringing the Bentley oil field on Block 9/3b into production and in doing so becoming a significant independent oil producer in the North Sea by 2014.

Business Strategy

Bring the Bentley field into commercial production

Grow its reserves base from the existing 116 million barrels of oil equivalent
(“MMboe”) of 2P reserves through the conversion of its prospective resources base

Grow its resources base further through drilling activity on Blocks 9/3c and 9/3d

Employ enhanced oil recovery processes (“EOR”) to further increase its resource base

Increase its asset portfolio through license rounds and asset transactions whilst utilising its heavy-oil expertise to leverage opportunities


http://www.xcite-energy.com/

2012 in Review and the way ahead Robert Cole Video

I don't think he's talking rubbish at all,just giving his view on how the market is behaving at present.Money left in stock where news is someway off in the future,is idle money,so the long term for many is no longer an option,hense the drift me
ntioned.

When is the £2.60 target going to be hit ? Sounds like 12 - 18 months before much is going to happen.

Results of Annual and Special Meeting
RNS
RNS Number : 9313E
Xcite Energy Limited
16 May 2013


TSX-V, LSE-AIM: XEL


16 May 2013



Xcite Energy Limited

("Xcite Energy" or the "Company")



Results of Annual and Special Meeting and Chairman's Opening Remarks



Xcite Energy is pleased to announce the results of its Annual and Special Meeting held on 16 May 2013.



The holders of ordinary shares of the Company approved the following matters at the Annual and Special Meeting, with votes in favour shown in brackets as a percentage of total votes cast:



(1) the reappointment of the following nominated directors to the board of directors of the Company and for them to continue in office in accordance with the Company's Articles of Association:



Rupert E. Cole (98.9%)

Scott R. Cochlan (95.8%)

Timothy S. Jones (94.9%)

Stephen A. Kew (99.8%)

Gregory J. Moroney (96.3%)

Roger S. Ramshaw (95.5%)



(2) the reappointment of BDO LLP as auditors for the ensuing year and the authorisation for the directors of the Company to fix their remuneration (99.9%)



(3) a resolution to ratify and confirm the Stock Option Plan of the Company dated 26 September 2007, as amended (94.6%)



(4) a resolution to ratify and confirm the existing Shareholder Rights Plan of the Company dated 30 November 2010, as amended (96.6%)



At today's AGM the Chairman, Roger Ramshaw, made the following opening remarks:



"2012 saw the safe and successful conclusion of the pre-production well test on the Bentley Field, which concluded in mid-September. This was a very significant achievement, for a company of our size, to manage a $250 million offshore work programme safely, on budget and on time, over a 10 month period. We produced 150,000 barrels of Bentley crude, blended it offshore and successfully sold it through our marketing partner, BP. We also captured significant quantities of data over the course of the test, which has provided the evidence to update our reserves report so comprehensively and given us a high degree of confidence in the new Field Development Plan for Bentley. From any perspective, this is something of which we can be very proud.



"The real impact of the 2012 well test is an increase in confidence in how the field might be developed. The test encompassed all aspects from drilling, through processing and flow assurance, to blending and offtake to market. We have been able to implement all the lessons learnt into a more robust and efficient Field Development Plan. The months of analysis and modelling following the well test, together with the interpretation of our new 3D seismic over Bentley, have resulted in far greater certainty in the field and its development plan, as evidenced by the recent and substantial increase in recoverable reserves and asset value.



"Our 2P Reserves for Bentley now stand at 250 million barrels, with a discounted net present value after tax of approximately $2.2 billion. This represents an increase of over 116% against the previously reported 2P Reserves of 116 million barrels).



"Heavy oil fields generally have long production lives, and Bentley is no exception with a 35 year Reserves profile out to the year 2050, reflecting the current design life of facilities used in the North Sea. TRACS, our independent reserves auditor, recognises that there is additional economic production from Bentley of a further 20 years beyond this initial period (out to the year 2070) and has assigned a further 46 million barrels of Contingent Resources to this 20-year period. We believe that by more detailed work on areas such as optimising the field and extending field life, there is the potential to access these Resources and deliver further low-risk upside.



"We also have other areas of potential future growth through the implementation of enhanced oil recovery techniques on the field, as well as exploration on adjacent assets, including those awarded in the recent 27th Licensing Round. These are at an early stage and we would expect to progress them systematically, as we have always done.



"Not surprisingly, we are greatly disappointed by the share price performance, especially following the great result we have delivered, but we will continue to move forward and focus on what we can control, which is the development of Bentley. Securing funding is a critical element of this and we have recently begun a farm-out process to find a suitable partner. We believe it should be possible to materially increase our RBL facility as a result of the Reserves upgrade and will be engaging with our existing and new banks to progress this. We will also be re-submitting an updated FDP in the coming months.



"We believe heavy oil's time has come in the North Sea, as evidenced by the very significant investments currently being made by Statoil (and partners) into the Bressay field just to the North of Bentley, the Mariner field to the south of Bentley, and EnQuest (and Partners) expected commitment to develop the Kraken field to the west of Bentley. Together, these fields represent very substantial sources of future long-term oil production from the North Sea, which as currently forecast, would make substantial long-term contributions to the UK economy.



"Finally, I would once again like to thank all of the Xcite team for their hard work, expertise and dedication to this outstanding Bentley project, which the Board has been very pleased and proud to be part of over the last few years."



For further details, please see the management proxy circular dated 9 April 2013 available on the Company's website and at www.sedar.com.

From the above -

"Not surprisingly, we are greatly disappointed by the share price performance'' You can say that again.

From iii

One quick point from reading.......Farm out with RKH was 3 months.....they say early stages also Financing seems sorted........quicker than we think maybe...


The meeting took place in a relatively small but full room with some 40 or so investors present. Certain members of the BoD seem to have a good sense of humour. That's a good sign but some of the jokes would not be appropriate to convey on public website.
Here are some main points that were said or came out of questions asked. I would invite other shareholders to give their commentary and correct anything I may have got wrong.

- Rupert Cole went as far as he could to say there would be no further dilution. IMO to have ruled it out explicitly wouldn't have been responsible.

- Financing need likely to be split $400M (RBL) and the balance to come from expected farm out. The lending basis will be the 1P reserves allocated to first stage/phase (ie 100M barrels and not 198M). However it can't be 5 X $155m (100M is almost 5x 22M which is the previous 1P figure) as the banks would put other caps e.g. financial leverage

- Farm out process is at an early stage. It was confirmed that farm out the RBL are linked. Even though RBL would be a more straight forward deal, its final outcome would depend - at least to an extent - on the outcome of farm out. Not surprising at all IMO.

- Once the way is clear (RBL, farm out, FDP) then it would be approx 2 years to production. No major technical / engineering risks are expected in that phase.

- No need for FPSO means that a simple FSO would suffice, diff. in cap ex is $1m vs. $50-60k (think it was per day but in retrospect may be wrong as the $1m pd sounds excessive)
- Still on the technical front the oil is quite hydrophobic which is good news as it reduces penetration of water into oil and the steps required to extract it. So further savings on operational expenditure.

- The other fields eg Chadwick, Chartwright have less viscous oil. That means that oil from such fields could provide the perfect diluent for the core area. Does this mean that they should be developed at the same time? Forgot to ask that one!
- It was acknowledged that the farm out partner's role would have much broader scope than merely to co-finance the project.

- A question was asked about Socius ...and Rupert replying to the question whether he saw anything untoward in the structure or the nature of the investment he said no to as far as he knew.

- Throughout the presentation there was acknowledgment or implication as to how undervalued we are.

- Director share purchases were excluded for the time being as we're in a "closed period" until farm out is complete.

- Last not least and that may be a subjective comment but one of the key things I was looking for was to get reassured about the quality of management. As far as I could tell we are in good hands and in particular the reference is to the executives. The presentation was well balanced informative and BoD and especially Rupert Cole tried to answer questions as much as possible.

Off to enjoy more of Paris.

MHB

Xcite Energy announces its results for the 3 month period ended 31 March 2013.

Highlights
· Net loss in the current period of £1.7 million, arising primarily from unrealised foreign exchange losses on a strengthening US dollar over the 3 month period.

· Cash of £20.4 million as at 31 March 2013, of which £12.3 million was held in escrow relating to the Bentley Phase 1A work programme, with £11.6 million of the escrow amount having now been released.

· Effective 31 December 2012, upgrade in 1P, 2P and 3P oil reserves for the Bentley field to 198 MMstb, 250 MMstb and 312 MMstb, respectively, based on an initial 35 year production period, as announced on 8 April 2013.

· Success in the 27th UK Licensing Round provides new acreage to the Xcite Energy Resources Limited portfolio. Blocks 9/4a, 9/8b and 9/9h add four identified prospects to the future exploration and appraisal programmes in the wider Bentley area.

· A binding agreement has been entered into relating to the sale of certain technical well data for $15 million.

· Commencement of the Bentley field farm-out process with industry participants.

http://www.moneyam.com/action/news/showArticle?id=4597796

"Under the terms of the Agreement, XER will receive $15 million in respect of the well data and associated interpretation work. An additional payment of $1 million will be made to XER following certain regulatory milestones being achieved by the purchaser"

Well If it’s a card game someone has shown their hand and very interested in been a partner……….should open the door to a few more players with a bit of luck.

Again I think things are at a more advanced stage than they are letting on………the SP will determine this.

Another good blue day

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How can you follow this thread ? cannot see the point of leaving dots. Getting very frustrating!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Its a dot dot Dash...........it means some thing is brewing with XEL

More a dot marky . :-)) Perhaps that's the only key that works on his computer.


24 out of 24 of m's posts are a (. ) , not really worth the posting ? MVO

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Thanks for that mnamreh. :-))

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thank u for pointing that out

Is there not at least a gap between Bressay and Bentley field of about 18 months between them been developed ? ..,

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Would be nice to see what you have typed as been away all weekend and just logged on.