.

Fox Davies...hmmmm

Xcite Energy (LON:XEL) Xcite's arrangement that BP will provide $5mm in the event of a successful financing is positive, but we temper caution; it is conditional on achieving financing with the wider group of banks. We are concerned that the extent of the use of diluents, that would create a $20 - 40mm working capital benefit, indicates how complicated this operation potentially is. While there are more complex fields and operating platforms, these fields and platforms are operated by companies with deep pockets with which to fund any working capital requirements; the management team has ample experience, and that which they lack they will be able to access. We have never doubted that the field would flow, and we still see no reason why it shouldn't, but we continue to have concerns that it will not flow in commercial quantities over a long enough period to be deemed truly commercial. As a consequence, until there has been production history, we remain cautious on the stock. In this news:

• BP will provide the offtake services to market and sell the Bentley crude oil in return for an incentive-based fee per barrel.

• BP will deliver diluents products in-field to Xcite Energy for blending with the Bentley crude to maximise its value prior to off take by BP.

• It will subject to certain conditions, provide US$5 million of financing for Phase 1B of the Bentley field development as part of the reserves based lending facility being negotiated with a group of commercial banks.

The market does seem unsure at the moment about this company. You have to start to question why this is still below a £1 .

This does not read well from FD - ''but we continue to have concerns that it will not flow in commercial quantities over a long enough period to be deemed truly commercial. As a consequence, until there has been production history, we remain cautious on the stock. In this news'':

dreamcatcher

The field flowed better than they expected when they did test last time over a number of days so with BP willing to invest money in them i dont see any bad news in the RNS at all.

Plenty of reason why the share price is where it is over the last 15 months i could blame lots of reasons but not with the field.

I dont see why FD have said that as there are other heavy oil fields that are flowing just fine so why should this be any different.

Am I right in thinking XEL are not a client of FD. If you go on their client list XEL does not appear. If they are, it seems a very negative statement they have put out.
The BOD of XEL are not going to be impressed at all.

Bentley Phase 1A Operational Update
RNS
RNS Number : 2389F
Xcite Energy Limited
13 June 2012



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



13 June 2012

Xcite Energy Limited

("Xcite Energy")



Bentley Phase 1A Operational Update





Xcite Energy is pleased to announce that the 9/3b-7z well has reached target depth of 9,646 ft (measured depth) on the Bentley Field.



A reservoir section in excess of 2,000 ft has been drilled with 100% net pay and sand control screens have been run successfully. The top reservoir, at 3,609 ft true vertical depth, is higher than previously encountered in any part of the field to date, thereby giving an oil column depth of approximately 121 ft. Geo-steering was again used successfully in the reservoir section to place nearly 100% of the wellbore in the target range of within 5ft to 12 ft from the roof of the reservoir.



The remainder of the planned operations, including installation of the smart completion equipment (enabling individual laterals to be flowed, co-mingled or shut-in), the down-hole pumps and commissioning of the processing equipment will now be undertaken prior to the production test commencing.



Steve Kew, Exploration and Development Director, commented:



"We are pleased with the work programme to date and this marks the end of the drilling phase as the rig operations now focus on the completion and preparation for production testing, with the upper lateral now ideally positioned as the first production well for Phase 1B of the Bentley development programme. The additional oil column encountered will be assessed and modelled in due course, and augurs well as we move ahead with the work programme towards first oil on Bentley."

http://www.moneyam.com/action/news/showArticle?id=4387273

More oil found

Another positive RNS,i cant moan only at the SP which will change in time.

Sold my npe and put into here. Lot of interest in north sea at mo.,.

Just had a small top up again in this,i see no word from Fox Davies on this today.

I guess no gloom for them to spin today.

13 Jun Xcite Energy Ltd XEL Oriel Securities Buy 89.13 - - Retains
13 Jun Xcite Energy Ltd XEL Seymour Pierce Add 89.13 242.00 242.00 Reiterates

Private Placement of 30,000,000 Units


http://www.moneyam.com/action/news/showArticle?id=4387947

a good deal for some, but not us! ...... plus ça change, plus c'est la même chose

http://www.moneyam.com/action/news/showArticle?id=4389018

dreamcatcher

Dont understand why they need this extra money i thought they had enough funds?

whats your take

markymar, The cash burn must be huge . Perhaps just keeping a good balance.
Still low share issue at 258,278,323 shares. Just need the share to start rising.

http://www.proactiveinvestors.co.uk/companies/news/44161/city-analyst-eyes-more-potential-takeover-targets-as-north-sea-consolidation-continues-44161.html

http://www.moneyam.com/action/news/showArticle?id=4390558

Signing of US$155m reserves based loan facility
RNS
RNS Number : 9207F
Xcite Energy Limited
22 June 2012



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





22 June 2012



Xcite Energy Limited

("Xcite Energy" or the "Company")





Signing of US$155 million reserves based loan facility



Xcite Energy is pleased to announce that it has signed a US$155 million secured reserves based loan facility agreement (the "Facility") for the Bentley field with a leading group of lending institutions. The Facility, with a term of five years, will be used to provide a substantial part of the funding required for the Phase 1B development of the Bentley heavy oil field in the UK North Sea.



The Facility has been arranged with Royal Bank of Scotland plc, Societe Generale Corporate & Investment Bank, GE unit GE Energy Financial Services, Nedbank Limited and Britannic Strategies Limited (a subsidiary of BP plc). Royal Bank of Scotland is acting as the Facility agent and security trustee, with Societe Generale acting as technical and modelling bank.



The draw down under the Facility is subject to conditions precedent, including the achievement of certain principal objectives in the Bentley Phase 1A work programme announced on 19 April 2012 as set out below, together with their current status:



v Drilling of a horizontal motherbore well in the geological formation immediately overlying the reservoir.



Current status: the drilling of this motherbore in excess of 1300ft has now been successfully completed.



v Drilling of the toe extension well (9/03b-7 well), a horizontal wellbore from the toe of the motherbore, with a reservoir section of up to 2,400ft in length. This well is be positioned approximately at mid-height in the reservoir at an elevation above the oil-water contact such that, when produced at an oil rate of at least 1,500 barrels of oil per day ("bopd"), it should initiate water breakthrough at the well and subsequently develop sufficient water cut (to approximately 50%) within the flow test period. This well will be plugged and abandoned at the end of the production test.



Current status: as announced on 29 May 2012, the drilling of this toe extension well has now been successfully completed, with a reservoir section in excess of 2,200ft having been penetrated with 100% net pay. Sand control screens have been successfully installed.



v The 9/03b-7 wellbore is planned to recover a minimum cumulative volume of 45,000 barrels of oil during the flow test period to help ensure that the data gathering will be as effective as possible. This flow test is planned to be up to 90 days in length and to be conducted at a range of different flow rates (specifically not 500 barrels per day for 90 days), again to assist in the data gathering programme, to achieve sufficient water cut to enable satisfactory calibration of the reservoir model and a revised, independent reserves assessment report.



Current status: this flow test is expected to commence in the coming weeks.



v Drilling of a lateral well (9/03b-7z well) from the side of the motherbore, a horizontal wellbore with a reservoir section of approximately 2,450ft in length. This well is positioned as high in the reservoir as possible, being similar in design and completion to the successful 9/03b-6z well. This wellbore was drilled after the toe extension well, but will not be flowed until after the toe extension well has been flowed to achieve sufficient water cut. This lateral wellbore will be cleaned up and then flowed at a rate of at least 1,500 bopd for a minimum period of one day, prior to being suspended as the first full production well on the field in Phase 1B.



Current status: as announced on 13 June 2012, the drilling of this lateral well has now been successfully completed in the roof of the reservoir, a section in excess of 2,000ft has been penetrated, 100% net pay was encountered and the oil column was found to be thicker than expected. Sand control screens have been successfully installed. The flow test on this well is expected to be completed in the fourth quarter of 2012.



With the Facility now signed, the Company will continue its preparations for the development of the Bentley field in Phase 1B, including the inter-dependent completion of the funding programme and the DECC approval for the field development plan.



In line with the previously outlined funding strategy and with the Facility now signed, the Company intends to pursue its other options to provide the balance of the funding required to commence the Phase 1B development. Such funding could be provided by the potential farm-out of an appropriate interest in the Bentley field following the outcome of Phase 1A programme in the fourth quarter of 2012, other industry participation, convertible debt instruments, mezzanine debt and potentially equity financing.







Commenting on today's announcement Rupert Cole, Chief Financial Officer, said:



"We are very pleased to have secured the Facility from such a high quality banking consortium with considerable experience in reserves based lending. The process to secure the Facility has involved a further rigorous, independent technical assessment of the Bentley field, the Company's field development plan for the Bentley field and the route to market for the Bentley crude.



Having secured the Facility in the current, difficult banking and financial market conditions, the Company has demonstrated a further substantial de-risking of the Bentley field and its proposed development plan."





Rothschild acted as independent financial adviser, and Pinsent Masons LLP as legal adviser, to Xcite Energy in relation to the Facility.



Herbert Smith LLP acted as legal adviser to the lending group.

.