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

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.

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http://oilbarrel.com/news/xcite-energy-tantalises-shareholders-as-it-sells-bentley-well-data-for-us-15-million

May 28, 2013

Xcite Energy Tantalises Shareholders As It Sells Bentley Well Data For US$15 Million



Xcite Energy surprised – in a good way – its followers last week when the AIM-quoted company announced the sale of a package of technical well data for US$15 million. This is an unusual move but then £300 million market cap Xcite has prided itself on thinking outside the box when it comes to its 100 per cent owned Bentley heavy oilfield in the North Sea.


The confidential deal covers technical data for the Bentley 9/03b-6, 6Z well and the 9/03b-7 and 7Z extended pre-production well test plus associated interpretation work. Xcite will receive an additional payment of US$1 million when the buyer passes certain regulatory milestones.

This is good news for Xcite, adding up to US$16 million to the coffers. The company ended Q1 with cash of £20.4 million, of which £12.3 million was held in escrow for the Bentley Phase 1A work programme; £11.6 million of this has now been released.

The data sale also underscores the technical credibility of Xcite's work on the Bentley field, signalling that the work has value to other operators. And while there is no information as to the identity of the mystery buyer, investors are obviously speculating that the deal signals some very real interest in the project or possibly the company itself.Xcite CEO Rupert Cole said the deal was “complementary” to the farm-out process that recently got underway, a statement that had industry watchers scratching their heads as companies engaged in the farm-out would surely have had access to this data in the data room as part of the due diligence.

“This has been done without compromising the company's intellectual property and is a good commercial outcome that provides additional working capital," said Cole.

Bentley is a major asset. It was discovered in 1977 by Amoco and is one of the largest undeveloped oilfields in the North Sea. The Bentley field may be heavy oil – between 10 and 12 degree API – but it's a quality reservoir, with oil saturations of more than 90 per cent and high porosity and permeability. Xcite has now drilled three wells into the field – that makes seven altogether when adding in wells already sunk by former operators Amoco and Conoco – and its work has successfully derisked this heavy oilfield, demonstrating it is capable of flowing at commercial rates and firming up 1P reserves of 198 million barrels, 2P reserves of 250 million barrels and 3P reserves of 312 million barrels.

It hasn't all been good news, however. The stock was the darling of the small cap markets, surging more than 700 per cent in 2010, but was dented following a conservative reserves report of 2011 and an FDP knock back by DECC. To restore confidence – and secure a US$155 million reserves-based lending facility - Xcite ran a pre-production test, known was known as Phase 1A, with the well exceeding management expectations. Water breakthrough was better than expected – a key indicator in heavy oil economics – and around 149,000 barrels of oil plus diluent were successfully sold to BP, raising £13.3 million. Importantly, the company now has a better understanding of how oil, gas and water move through the reservoir to help optimise the field development plan.

This, however, is still a long way short of being what most investors consider a developed oilfield. Phase 1B, involving a 15-well template, is the next key milestone and a farm-down is necessary to shoulder the development costs. This will be a key benchmark of how the industry values this project. Bulletin boards are alive with chatter, however, that the company will be acquired before then, with Norwegian oil giant Statoil tipped as the most likely candidate given that it is already signed up for the US$7 billion development of the 250 million barrel Mariner heavy oilfield.

Indeed, industry watchers suspect Statoil could be the mystery buyer of the Bentley well data – after all, £15 million is relatively small change to the Norwegian giant – signalling its potential interest either in a farm-in or corporate transaction. For its part, Xcite is playing its cards close to its chest but once again the AIM company has won plaudits for extracting cash from industry before a deal has even been inked.

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Cancellation of Rowan Rig Option



Xcite Energy announces that its 100% subsidiary, Xcite Energy Resources Limited ("XER"), has cancelled its option for a jack-up drilling unit from British American Offshore Limited, a subsidiary of Rowan Companies, Inc. The rig contract was initially entered into in February 2011 and subsequently amended in February 2012 ahead of the pre-production extended well test on the Bentley field, which was completed in September 2012.



Following the extended well test, which has led to the significant increase in reserves and updated field development plan, the Company no longer believes the terms and structure of the rig option to be appropriate for its commercial objectives.



XER has been in constructive dialogue with other drilling rig providers to develop alternative commercial solutions, which potentially would deliver better strategic alignment and fit for purpose structures to reflect the amended Bentley field development programme. Consequently, Expressions of Interest have now been issued to a number of drilling rig providers to formally develop an optimised drilling solution for the Bentley field.



Rupert Cole, CEO of Xcite Energy, commented:



"We are grateful for the provision of the Rowan Norway and the associated drilling support during the successful extended well test last year. The amendments to the Bentley field development plan have given us the opportunity to construct a more commercially attractive and longer term approach to drilling up the field, and we are encouraged by the alternative structures that the industry has to offer. We look forward to updating the market in due course on the outcome of this initiative, which could further enhance the economics of the Bentley field development."

Completing; forming a complement.
(of two or more different things) Combining in such a way as to enhance or emphasize each other's qualities.

Xcite Energy is pleased to announce that its 100% subsidiary, Xcite Energy Resources Limited ("XER"), has entered into a non-exclusive, confidential, binding sale and purchase agreement ("Agreement") for certain technical data in respect of the Bentley 9/03b-6, 6Z well, and the recently concluded 9/03b-7 and 7Z extended pre-production well test.

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.

Rupert Cole, CEO of Xcite Energy, commented:

"We are very pleased to have completed this agreement, which is complementary to the recently commenced farm-out process....."

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looks like she is starting to blow at long last