.

Good update....

Thanks to gramacho on ii



T09:19 Well Done XEL Setting Clear Expectations Gramacho 53




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Well done XEL management for clearly describing the expectations for Phase 1A. From a short term financial point of view it would have been beneficial to have located the wellbore near the top of the reservoir to maximise the oil recovered during the test. However the only satisfactory way to calibrate a reservoir model for water cut development is to produce water, monitor the build up of water cut over a period of time and adjust the reservoir parameters within the model to match the build up in water cut.

The results of the test will ensure the reservoir model predictions are more robust and carry less uncertainty. This is clearly what the DECC has been looking for to satisfy itself that the development plan is based on a calibrated reservoir model and therefore is as optimal as it can be at this stage. From XELs standpoint greater confidence in the reservoir model‘s ability to predict oil profiles should assist funding efforts.

Early water production during Phase 1A could have been seized upon by shorters as an opportunity to invoke much negative sentiment regarding poor well performance etc. XEL has made it clear that due to the well location mid way in the oil column water production is to be expected. As long as the water cut is not markedly higher than the quoted 50% (e.g. 80%) then there is no cause for significant concern.

Regards and GLA

Gramacho

Good news and down it goes, frustrating.

Isn't it time this went up?.....flow testing soon.....production soon.....

Gone back into its sleepin' beauty routine again of a few years ago.....time it woke up......still stuck in here at a loss.....

Break even me.,.

Just think what will happen if this drill has problems for the extended flow test has problems - 50p would be coming very quickly. Very high risk at the moment is XEL and the price of the share is telling you that.

Yes, but if all goes well they know they will hit oil and not gas proselenes, :-))

High five dr.,.

lol

Compared to some this is low risk....they have already had an exploration well with a flow (two years ago)...then an appraisal well with an excellent flow and now this is a production well......way...way...undervalued.....ridiculous here...

Agree rf

I do know XEL quite well you know, I was in at 21p and out nearly at 400p.

Unlike many :)

It should in my view be worth double the sp today....once the production in safe british waters gets underway...the cash inflow (if I can call it that) will be serious....everybody has forgotten about BP and Schlumberger being on board with the production development for this one....

of course you were .... that's why you've now retired to sunnier climes

Never gets anything wrong by the sounds. :-))

So was I.....made the mistake of buying back in I think around 250p.....but anyway....this seems to be the ugly duckling of the market......might change soon....

BBs are full of such folk; they just find it simpler and more fun to join this type of exclusive club than say muirfield or st andrews

Lets hope rf. Perhaps more prosperous companies in the mean time.

I for one am surprised at the low sp....but I suppose I shall have to be patient as usual....