.

The Intraday chart has a lovely sight just now @ 180p

The spike took the shares to 194p but down again to start the new trend ( it seems is like the GAP, it has to be revisited again )

rococo i take my hat off to you perfect trading.

thanks " marky "

the shares are ready for the next move up after the pause this afternoon

pleased the sp has held

quick spike first thing-grab any profit sharpish!

Xcite Energy Limited Update on "Rowan Norway" N-Class Jack-Up Rig & FDP
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TIDMXEL

RNS Number : 2812K

Xcite Energy Limited

13 July 2011

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES

TSX-V, LSE-AIM: XEL

13 July 2011

Xcite Energy Limited

("Xcite Energy" or the "Company")

Update on "Rowan Norway" N-Class Jack-Up Rig and FDP

The Company is pleased to announce that the "Rowan Norway" deep water jack-up rig, scheduled for use on the Company's Bentley field, has now been delivered by the Keppel FELS shipyard in Singapore to Rowan Companies, Inc.

The rig will now be transported to Dundee using the OHT Hawk heavy lift vessel, where it will undergo final testing and will be crewed and equipped for its deployment onto the Bentley field.

Preparations for the submission to the Department of Energy and Climate Change of a Field Development Plan for the Bentley field remain on track and are consistent with the rig deployment timing.

now the cash call

In Auction speed clogs to the ready

Probably just the open auction going by the time of your post.

Buyers are willing to pay higher prices since started the day

176p , 179.55p,181p, 182.2p and now paying full offer 183p though there are 17K at offer 183p ( 10K from WINS )

i wouldn't be at all surprised if there are further on offer from WINS behind that initial 10k, but no worry ..... at least sp trying to limp north

Arbuthnot note:
The Rowan Norway rig which Xcite will be using to drill the Bentley field ahead of first production has been delivered to Rowan by the Keppels shipyard in Singapore. The rig will now be transported to Dundee for final testing ahead of moving to the Bentley field.

Xcite has yet to submit its development plan to DECC for approval, once this has happened then the process should take about three months for approval. We understand that submission is due in the next few weeks.

The key issue for Xcite is funding. We still have no clarity as to the funding requirement or the split between debt and equity. Until this is resolved the issue we feel that this will continue to be a dampener on the share price.

Xcite's share price has been extremely volatile in the absence of any news flow in recent weeks. Today's news is positive and the market is very likely to see this as a major buying opportunity.

We continue coverage with a Buy recommendation and target price of 348p..

FT Alphaville and some analysts still questioning whether XEL is commercial

XEL's deepwater jack-up rig has been delivered by the Keppel shipyard in Singapore to its owners, Rowan Companies, and will now be transported to the North Sea to start appraisal drilling on XEL's Bentley heavy oilfield. Doubts still remain about the commerciality of the field and I'll be interested to see how things pan out over the coming months. Apart from anything else, a recent CPR estimated capex of almost $700m to develop the field's 28m barrels of 2P reserves. Shares have seen a recent rally after a heavy sell-off but I wouldn't be tempted in, if anything I'd be selling into any strength

"commerciality" - what a horrible word.

Do not be surprise if those on the "ville" are being paid to say that.

Possibly but the sp is in big trouble again

Xcite Energy Ltd: Arbuthnot Securities maintained a Buy rating on the stock, with a target price of 348.00p

wish someone, including their clients, would listen to them then!

Agree.Need the funding news

I am copying this post from Luckyjonah on the Motley Fool Oil and Gas Board. Supports the title of this thread, strongly. He is commenting on the FT Alpha guys.

Not heard much from LuckyJ of late - care to comment?

Sorry, I've been tied up with other stuff of late... the price swings have been bordering on the ridiculous, but I'm maintaining my view that the ultimate way to profit from XEL is to hold through to production at least (unless you are a trading genius which you'd need to be with this volatility!)


NH the prospect might not be commercial... Doubts still remain about the commerciality of the field... a recent CPR estimated capex of almost $700m to develop the fields 28m barrels of 2P reserves.

As very clearly stated in the RAR:

"The capital expenditure and construction schedule of the FSP is assumed to be the same for the Proved (1P), Proved plus Probable (2P) and Proved plus Probable plus Possible (3P) outcomes. Hence the estimated future development costs are assumed to be the same for all three outcomes."

I presume their Blackberries couldn't fit all the text of the RAR into a single screen for them. As for "doubts over commerciality", more on that below:


The NPV10 of what will get booked when they get funding is twice the market cap
...
The claim of 200m bbls recoverable looks a bit far fetched here.

Current market cap is only around 35% of the NPV10, however this doesn't take account of anything other than the RAR cold flow figures - the RAR reserves + contingent + prospective = 150mmbo, but XEL have always stated that further field development plus EOR will cause the ultimate oil recovery to be "materially improved over time". I think "material" is going to be at least 30% (ie. 200 mmbo). As well as further drilling on Bentley to prove up further reserves there are other structures on 9/3b (Brunel, Bessamer, Bunsen, Boyle) not to mention their new block awards next door.


there are a lot of tax breaks for the first $800m of production.

The Field Allowance is 800m ( not $!) plus they already have $100m CT offset. More importantly FSP is expected to generate funds for SSP which converts to booked reserves as field development progresses (no technical barriers). Total capex is $676m as per RAR, however only $182m of this is in year 1. If FSP produces 15,000 bopd this will generate revenues of $547m in year 1 which is going to fund further drilling and expansion. Of that $182m a sizeable portion must be for the rig and the company already has a $160m SEDA with Yorkville of which they have drawn down $37m (I think, please correct if these figures are wrong!) - with $20m from BP I make them $2m short of that year 1 figure excluding any potential revenue from production. That's like 1 month's pay for the Directors ;-)


You may jest but a "fresh from the box" rig does give me a bit more cause for concern than one with a few wells under its belt.

The Rowan Norway has a sister rig the Rowan Viking, which is 5 months ahead of XEL's rig - it's already been kitted out in Dundee and is about to be used by Total. I am therefore pretty confident that any issues will be ironed out by Total on the Viking.

The point of the Norway rig is that it allows for simultaneous drilling and production - this offers flexibility in cost control and therefore significant control over finance and cashflow. Since 9/3b-6z was capped and can be re-entered for production, I would see this as a "low cost" entry for them to generate cash to fund drilling the second well, etc. I'm sure they are considering all options and will choose the optimal solution for shareholders (and themselves of course ;-)

Still happy to hold, although I'd prefer a move to the main market to try to quell the volatility.

Cheers


-luckyjonah.
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