.

there are plenty of others than XEL!

This is a ridiculous sp.....before the bentley discovery it was around 20p to 40p or so...now several years later and more than 100 million barrels recoverable (just about)... perhaps a lot more...production due to start within 2 months....sp is 115p....just nonsense....should be 180p if not more....blinkin' market...cannot believe how ridiculous some of these share prices have got like....well I've just bought some more....crazy this drop....market cap of 280 million only...and more than a billion pounds worth of heavy crude in the ground if not more :...ripe takeover target ? with imminent production !...

Going the wrong way, will soon be back to a £1 at this rate.

I hope not.....

Ridiculous like you say rf

Posted on ADVFN:
-----------------------------
"Socius have completed two 'Placings' worth £12.9m and £12.6m @ 85p and 95p share prices respectively. This has provided them with additional Warrants of 7.6m @ £1.02 and 6.7m @ £1.14 respectively. Xel have protected themselves with a 'Forced Exercise Provision of these warrants in the event the sp VWAP exceeds 120% of the warrant price i.e. £1.224 and £1.368 respectively. Meanwhile: Esousa are obligated to purchase shares up to the value of £60m. So far they have purchased three tranches: 30th Dec 3,765,060 @ 93.95p = £3.537m 2nd March 7,912,891 @ £1.38 = £10.9m 21st March 8,310,540 @ £1.24 = £10.3m Total £24.737m leaving an outstanding obligation to spend £35,263 on additional shares. Clearly Esousa would like the share price to remain low until their purchase obligation is complete and Xel have drawn down all the £60m. Socius probably do not want to spend additional funds just yet having already laid out £25.5m over the last 3 months. If the 20 Day VWAP exceeds the limits I've detailed above and the volume stays above 1m shares then Xel can force them to exercise the warrants which they would probably rather hold for as long as possible (max 3 years). So with the two financiers both interested in maintaing a low sp, Xel are probably keen to take Esousa out of the picture -- so are drawing down on the Equity early. Once Esousa are done they will be very happy for the sp to rise. Summary: Socius want a low sp for as long as possible up to 3 years. Esousa want a low sp until they have been asked to provide the full £60m (£35m to go). Xel want to unlock things so will run Esousa more quickly than necessary. Also aids balance sheet for Q1 results. I think we can expect to see the sp stick around the current levels for some time to come to ensure Socius hand is not forced on the warrants. But ultimately both companies will own a shed load of shares and this thing will rocket when the time is right."

Carries on like this will soon be BELOW a £1

Time is of the essence and this will cause more delays.

http://contrarianinvestoruk.squarespace.com/


Xcite Energy issues $50 million in loan notes to secure funding
Thursday, April 5, 2012 at 8:40PM
$50 million in funding means:

1. No more dilution and manipulation from Esousa and Socius. I think Smith, Cole and the other directors were fed up with the price being forced down to close to £1 in order for Socius to get warrants on the cheap

2. 1a fully funded and large chunk of 1b with West Face Capital and BP loan of $20 million (EWT could generate at least $12 milion plus profit on a flow rate of only 6000 bpd) see http://contrarianinvestoruk.squarespace.com/posts/2012/4/2/xcite-energy-bentley-well-drilling-update.html

3. No more talk of sub £1

4. 14% interest but standard for early stage project and repayable after August 2012

5. No one would loan $50 million if they truly believed the EWT would be a disaster

Xcite Energy Limited ("Xcite Energy" or the "Company") - Issue of US$50 million of Unsecured 14% Loan Notes

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART DIRECTLY OR INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION

TSX-V, LSE-AIM: XEL

TORONTO, April 5, 2012 /CNW/ - Xcite Energy announces that it has today issued US$50 million of unsecured Loan Notes to a fund managed by West Face Capital Inc. ("West Face"), a Canada-based investment management firm.

The Loan Notes have an initial term of 360 days and, subject to West Face approval, may be extended by XEL for a further 360 days. The Loan Notes bear interest at 14% per annum payable in arrears on 31 March, 30 June, 30 September and 31 December in each relevant year and at maturity. Interest can be paid or rolled up into the principal amount of the Loan Notes at the Company's discretion.

West Face is entitled to receive a maintenance fee equal to 1% of the outstanding principal amount of the Loan Notes 180 days from issue date and at maturity. The Company has paid a fee of US$1 million to a third party in connection with the initiation of this transaction.

The Company may prepay the Loan Notes at any time after 14 August 2012, either in full or in part in an amount equal to at least 10% of the principal amount outstanding, provided that it also pays on the amount prepaid accrued interest up to the date of prepayment and an amount equal to the interest that would have been paid on the amount prepaid up to maturity.

In certain circumstances (including any person(s) acquiring a 35% or greater holding in XEL's shares, the current directors of XEL ceasing to constitute the majority of its board, the amalgamation or merger of XEL into another company or the liquidation of XEL), holders of Loan Notes may elect to have all or part of the principal amount of their Loan Notes prepaid together with accrued interest and an amount equal to the interest up to maturity that would have been paid, on the amount prepaid.

Prepayment of the Loan Notes, together with accrued interest and an amount equal to the interest that would have been paid up to maturity, on the amount prepaid, may also be required from the proceeds of any non-ordinary course disposal of assets by XEL or its subsidiary, Xcite Energy Resources Limited.

West Face is also entitled to be paid in the event of any prepayment on the Loan Notes an amount equal to the maintenance fee that it would have been otherwise paid on the amount of Loan Notes prepaid.

The funds raised by the issue of these Loan Notes strengthen the Company's balance sheet and provide additional contingency funding during the important Phase 1A work programme on the Bentley field. The funds will be used for the Company's working capital requirements and general corporate purposes.

Oriel Securities

So actually its 18%.

1 million set up fee (which is 2% of 50m).

14% interest + 1% at 6 months + 1% at 12 months.


So all in all its costing XEL 18% interest. Why not just continue with the SEDA ? Seems strange to me to do this and pay 18% for it.

thanks to cumingtonite1 on ll




This is really good news. Obviously $50 million is an awful lot of money and takes care of financing concerns for the short to medium term but I would say that it is better news that even that. Here's why:

- Obviously It differs from an equity draw down from the point of view of being non-diluting (It would be the equivalent of an additional 44million shares (18%) dilution at yesterday's £1.13 level). And if we assume as we must that Esousa would have continued to sell as further shares are obtained to maintain whatever their pre-decided target stake is in the company then that dilution would have been even heavier. Just the fact of continual diluting RNS would have surpress the SP. A 90p share price would mean 56million news shares, 80p = 63million etc... Today's news obviates this threat.


.- Further to this it is symbolically significant. An Equity line finance from firms such as Esousa is done on limited risk to the financing company. For the simple reason that they alway buy shares at a discount and will be able to buy more if the share price falls again at a discount. Thus keeping their average price lower that current share price.
The same can not be said for West Face. They are simply lending money and accepting that if the company cannot afford to pay them back then they will at the very least take a substantail hair cut. They therefore have to quantify that risk by way of interest rate. Here the acceptable risk for the whopping sum of $50million is 14%. Symbolically this sends a significant symbol to the market.

Finally it's signifcant because we are all very confident that the oil is there and that it can be retrieved. There is a tipping point which we are all waiting for beyond which this company generates more money than it spends. The question is how many shares in issue will there be at that point? Once this drill starts to send back further confirmation of comerciality then there is no reason to think that further reserve based financing will not be forthcoming, perhaps at even lower rates of interest. This is a very significant step to stabalising Shares in issue at 2-300million. We now know that they can raise substantial sums without issuing shares and that's before the further imminently anticipated news.

When in a year's time we're sitting at home reflecting on when it was that we first knew that our investment was going to come good I think that we'll remember right now.

I thought they needed close to a $billion to get up and running 100%?

We will see what the market think on Tuesday ?
Have the company just raised enough funds until a takeover or a jv comes along.

Must confess have not followed this company much in the last year or so, with reading. Anyone know what this EWT is? Is it the current drilling program ?

Just wonder how many investors are sitting with a sp of £2, £3 + just waiting to get out. Im one.

i don't but i'ld be out even at £2 with a handsome profit

EWT some sort of flow rate results ? Good for you cynic.

http://tmx.quotemedia.com/article.php?newsid=50082545&qm_symbol=XEL

Extended well tests
DECC may authorise extended periods of test production (extended well tests – EWT) from exploration or appraisal wells prior to development approval if it can be demonstrated the licensee will thereby gain technical understanding or confidence in the performance of the field needed to progress towards a development.

The EWT should have realistic and definable appraisal objectives essential to the success of a development, and not be prejudicial to ultimate recovery. There is no strict criteria governing the maximum volume to be produced or the duration of an EWT, although duration is not usually expected to extend beyond 90 days. Duration may be extended if there is technical justification but please note EWTs are not an alternative to production under an approved development plan.

There is no obligation to proceed with development following an EWT. EWT consent requires a formal letter of application that sets out the timetable and objectives of the test and quantities of oil and gas to be produced and saved or flared/vented. If oil and gas is to be saved during the EWT, a field determination may be required for the field in question. Throughout the test the operator should submit to DECC monthly oil, gas and water production figures. Please email these at the end of each month to david.roberts@decc.gsi.gov.uk

looks like the 50m is not enough then?