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Xcite Energy1 (BUY) – Rowan Norway rig visit
XEL (Target price 242p) Market cap: £368m
Yesterday, a group of journalists and two analysts were shown around the rig which is moored in Dundee harbour. The new build rig is currently undergoing final preparations before heading to the Bentley field to start drilling.

We were told that DECC had been to inspect the rig on Wednesday and we would now expect final approval to be given in the short term. Under phase 1A it will drill two wells and conduct an extended well test for up to 90 days. Positive results from these activities should then provide DECC with enough comfort to approve the full field development plan.

The announcement of the site visit resulted in a 25% increase in the share price, an overreaction in our view. It does show that the market is desperate for any information from the company, which has been lacking of late. We feel that the DECC approval and subsequent departure of the rig should provide major drivers for the share price. Any conversion of contingent resources into reserves should also enhance valuation.

We expect share price performance to continue to be strong in anticipation of newsflow. We continue coverage with a Buy recommendation and target price of 242p.

Dr. Dougie Youngson | Oil & Gas Research | 020 7107 8068 |dougieyoungson@seymourpierce.com

Pass the parachutes round.

Incredible stock movements at the moment for the oil sector....not seen this for awhile....caught some more here....

Back up she is going....

Xcite is an apt name for this one!

Where is my £2....today i would like it, its a roller coaster ride today.

Back in auction. Which way now?!

The MMs have played this one well. Back to 187 please!

:o)

top-sliced earlier this morning at 176 as deemed it prudent given the huge rise and no obvious news

quite right cyners, spudding nextthen 3-4 weeks after up she gushes......hopefully.,.

Socius I would think must be due to sell another block. Very early sale of the first 5m

Quicker they sell , the better for all of us.

What's hot tip site (James Faulkner) have put a possible £4 tag on this.....long way up from present value !.

Was out this morning, pity would have taken some profit like cynic.,.

bought them back at 155.75 being slightly above the previous resistance but now support (i hope) of 150

did same with afr yesterday sold at 132 and bought back at 126......nice profit.,.

Been in and out half a dozen times this week.....apart from PTR...not bad overall...

The wife will be happy RF then.

Somebody elses ?.....possibly...not a bad idea...I'll look around for one this weekend....at the moment single...