.

Xcite Energy (Frankfurt: A0M7X9 - news) , which, as Roland Head reports today , has climbed 48% to 113p over the last month. Still very much a share for oil and gas veterans rather than widows and orphans, Xcite combines the best of the 'small oilie' world in one package: revenues from existing production, and the prospects of gains from future production. Analysts have pencilled in profits of £25 million for next year, and reckon that the share is a 'strong buy'. Long-term shareholders, who have had a decidedly bumpy ride, can only hope that they're right.

I mentioned a while ago this was a strong buy but a bit of patience may be required. I could check back but I think the SP was in the high 80s when I posted.

As to the Statoil rumour, yes, that's true, although bb rumour rather than press. But that's not the only expectation, potential for a farm in as well. but the main focus right now is the EWT which is over 60 days in of a planned 90 days. The result of the EWT, apart from banking about $10M from the test in revenue from recovered oil is the likley update in reserves. Throw in that the test will (if successfu)l finally prove that Bentley is commercial, Xcite begin to look more attractive. This is one of the biggest under-developed fields remaining in the North Sea, it's no surprise that investors think it's worth more than a share price in the 60-100p range. The oil has been flowing at about 3000bbl/day so looking good.

I can't see that this is been ramped heavily, sure there's the usual clowns spouting £5 by Xmas but not the 300-500 posts a day that can be expected on ADVFN.

Bp could be interested ?

No idea Dreamcatcher, synergies with Statoil due to their proximity to Bentley which is why they keep getting flagged up as a potential suitor. I think any suitors will wait for the result of the EWT or at least some inkling it's met expectations before mounting an offer. If that's what anyone intends.

Agree chuckles.

When can we expect EWT chuckles?

Just over 60 days in out of a planned 90 days. I think XeL will announce completion of the test by RNS. Probably include how many bbls of oil flowed at what rates and how much water. Remember water is expected and intended so not bad news.

Thanks C.,.

Balerboy
This links summarises the Xcite story so far bettert than I can.

Xcite warming up

Thanks again C, looking very good.,.

("Xcite Energy" or the "Company")

Sale of Bentley Crude Oil and Flow Test Update

· Sale of in excess of 135,000 barrels of Bentley crude oil
· Pre-production flow test continuing in line with expectations

Xcite Energy is pleased to announce that through the marketing and offtake agreement with BP Oil International Limited ("BPOI"), it has sold in excess of 135,000 barrels of Bentley crude to a major refining participant in the European market. Pricing of the Bentley crude was better than the Company's assumption of anticipated discount to Brent (modelled at 12%) for the conservative full field economics.

The pre-production flow test continues to be conducted in line with the Company's expectations and is approaching the end of its planned programme. It is expected to be concluded within the next two weeks, with additional crude oil production in this period included as part of the sold cargo.

Commenting on today's announcement Rupert Cole, Xcite Energy CEO, said:

"We are extremely pleased with the progress of the flow test and the substantial amounts of data and information that is being gathered. We have also had a great outcome with the sale of this first cargo of Bentley crude, which has been priced at a comparable value to the expected full field production. BPOI has again provided us with excellent support in its role as marketing and offtake partner for the Bentley

but this isn't nearly as good news as from FOGL - ask MrP :-)

No thanks :-)) We have oil

Nice bit of income from the test, about $15M judging from the RNS and more to come.

Remind me of FOGL's revenue stream again? Silly me, they don't have one, lol.

Lol, sp should start to move north now. Ramp,ramp, ramp

Carry on ramping Dreamcatcher

what ho marky .... how goes life with you? ..... haven't heard from you in ages

Lots of changes at the mine Cynic,i will chuck you a wooden clogs at some point.

http://www.spreadbetmagazine.com/blog/

Xcite Energy finally issues positive update on Bentley field

Posted on Friday, September 7, 2012 at 7:54AM


After a wait of over a month since the last operational update, Xcite Energy issued an RNS this morning on the progress of the Bentley North Sea field extended well test.

The company has sold in excess of 135,000 barrels of Bentley crude, with pricing better than the Company's assumption of anticipated discount to Brent (modelled at 12%) for the conservative full field economics.

The pre-production flow test continues to be conducted in line with the Company's expectations and is approaching the end of its planned programme. It is expected to be concluded within the next two weeks, with additional crude oil production in this period included as part of the sold cargo. The original target for production was at least 45,000 barrels, so a very strong result.

So with the test completed by the end of September and the Rowan Norway rig off hire in October, plenty for the management team to get their teeth stuck into. Firstly there's the submission of the revised field development approval to DECC, modelling of the new reservoir data which may lead to a reserves upgrade by the end of 2012 and then the start of farm in discussions to finalise the funding of phase 1b of Bentley production.

With the extended well test seeming to be a great success and the data package looking encouraging, Xcite may be looking more enticing than ever for a potential acquirer.

For long term shareholders, it is a great shame that DECC threw out the original field development plan submitted in 2011, since Bentley would now be producing crude oil at substantial quantities. The set back means that full production is still more than a year off.

The shares are up 2.5% percent right now, but a catalyst for a major rise may not be apparent for some time unless a bid emerges given the need to complete a farm in and get the necessary approvals.

So far so good for the revised management team, following the retirement of CEO Richard Smith - now to deliver DECC approval and get the replacement rig for the Rowan Norway ordered as soon as possible given the 12-18 month lead time for delivery.

Contrarian investor UK