.

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

http://www.spreadbetmagazine.com/blog

North Sea oil gold rush - risk:reward ratio improves further for investors

The North Sea oil sector had a boost this week when the Government announced further tax breaks to companies working over older oilfields in order to enhance production - a welcome change from the dark days of 2010 when the Government was seeking to do the opposite and hobble the industry!

Often with AIM and FTSE350 companies there are many pitfalls to cross – the sheer lack of finance available has hindered both exploration and the all important move to “first oil” for many companies. However, over the last few months, M&A activity has been in the ascendance. This week Edison Investment Research published a piece of analysis (Link here - http://www.edisoninvestmentresearch.co.uk/research/sector-commentary/#a-8272) in which they noted that since their previous review of the sector that, of the dozen players in the North Sea region that can be invested in, 6 have been approached or taken over in 2012. Whilst some of these companies like Encore and Nautical Petroleum effectively had to call time on their efforts to go it alone and accept offers some way below their potential value – they still managed to sell for between $8-12 dollars a barrel which is a not too bad return for investors. In fact this seems to be the benchmark level for North Sea players in takeovers.

Despite the massive money printing exercises and bond buying by the major central banks, capital markets access remains tight however. What is noticeable in recent months though and encouraging for shareholders is that management of these companies are themselves now balking at further equity dilutions as they are finding their holdings being diluted too much. One prime example is Xcite Energy which has seen the decimation of its share price due to perpetual equity and attached warrant issuance and so structured a $155m RBL lending deal recently. Bearing in mind the corporate acquisition benchmark of an average around $10 to the barrel, and a typical undisturbed share price prior to acquisition of a discount of around 50% to $10 , this would imply an enterprise value of less than $6.50 per barrel being a good investment proposition. Xcite currently trades for around $4.80 a barrel implying 20% upside just to harmonise with the peer group. If one is optimistic on the Enhanced Oil Recovery (EOR) in relation to the believed 550m boe in Bentley then a share price meaningfully higher than 200p can be postulated in the event of a takeout.

Ithaca Energy, itself a successful producer, turned down an offer at 205p just a couple of months ago and promptly saw its share price halve and only recover today to 140p. This turning down of the bid does however demonstrate that as the field of companies suitable for take-over shrinks that those companies that address their intermediate funding needs are getting more pricing power when the raiders come knocking.

Below is the list of companies and their current resources that are listed on the FTSE and AIM markets. Of the North Sea players there are only a handful left in the smaller market – Enquest, Ithaca, Xcite, Serica, Faroe and Premier Oil. Premier is established enough that is an unlikely takeover target and indeed may in fact be a consolidator.

The lack of targets left in this politically stable, proven area of Oil exploration and, with easy access to the market and plentiful infrastructure, will help to underpin the prices of these remaining companies for sometime to come in our opinion. In fact, it is only a matter of time until the major players take out another few of these.

Another 25 - 30p and I will :-))

at least my current holding is now nicely in the money, albeit i'm sure i must have lost a fair bit somewhere in the the past - unless i was astute enough to bank sufficient profit en route (can't remember!)