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http://www.investegate.co.uk/Article.aspx?id=201210150700066497O

Suspension of 9/3b-7 and 7Z wells and rig off hire on Bentley Field


Xcite Energy is pleased to announce the safe and successful conclusion of the Phase 1A offshore work programme, with the Rowan Norway drilling rig having been demobilised and handed back to Rowan Companies Inc.

The 9/3b-7 and 7Z wells were successfully suspended for future use as production wells during Phase 1B. The Scott Spirit and shuttle tanker are now off hire and the offtake pipelines have been safely recovered.


Commenting on the conclusion of the Phase 1A programme, Rupert Cole, CEO, said:


"On behalf of the Xcite Energy team, I would like to thank everyone involved in Phase 1A for their contribution to the safe and very successful conclusion of the work programme. We look forward to progressing towards Phase 1B."

on the turning today from earlier on and now holding around the 106p

up dated broker note


http://www.edisoninvestmentresearch.co.uk/researchreports/Xciteupdate171012.pdf

Xcite Energy says new licences are part of a strategy for growth
3:16 pm by Jamie Ashcroft Xcite will explore the new prospects over an initial four year licence term, on a ‘drill or drop’ basis. Xcite Energy (LON:XEL, CVE:XEL) has confirmed it is expanding its North Sea portfolio.

The company has been awarded additional acreage, containing four significant prospects, through the UK’s 27th offshore licensing round.

It will explore the new prospects over an initial four year licence term, on a ‘drill or drop’ basis.

The company says the additional acreage enhances the development potential of the greater Bentley area, and it is part of the company’s strategy for growth.

"The offer of these Blocks is a welcome expansion of the Xcite portfolio,” chief executive Rupert Cole said in a statement.

"Whilst we remain focused on the development of the Bentley field, these additions clearly demonstrate our intent to grow Xcite into a significant North Sea player."

This expansion comes as the development of the Bentley oilfield moves to a crucial stage. The company recently completed the Phase 1A programme and it is now preparing to embark upon the next phase which will kick-start commercial oil production.

Xcite Energy a ‘compelling opportunity’, says Liberum Capital
12:10 pm by Jamie AshcroftTwo weeks ago Xcite completed the first part of its development programme for the oil field, which comprised a number of production tests

Xcite Energy (LON:XEL, CVE:XEL) offers a compelling opportunity for investors to access rare heavy oil expertise, says City broker Liberum.

It is currently on the cusp of developing the Bentley heavy oil field in the North Sea, with first production possibly coming next year.

Two weeks ago Xcite completed the first part of its development programme for the oil field, which comprised a number of production tests designed to gain an insight into the field’s longer term production profile.

It was a significant milestone the field’s development that moved Xcite closer to securing remaining project finance, which should in turn lead to approval from the UK Department of Energy and Climate Change (DECC).

And it will mark the end of a period of perceived uncertainty for investors, according to Liberum analyst Andrew Whittock.

Highlighting the significant volatility in the shares over the last two years, Whittock says there were legitimate concerns over the value of the Bentley driven by the perceived difficulty, cost and technical issues associated with heavy oil.

But he now believes there should now be greater confidence in the commerciality of the field following the recently completed testing programme, as well as the initial financing arrangements that have been put in place – which includes a $155 mln reserves based loan (RBL) from a banking consortium.

“The due diligence undertaken by the banks will have included a thorough assessment of technical risks and the offer of a debt facility demonstrated confidence in the project’s long term viability,” Whittock said in a note.

“We believe the recent extended well test should have addressed any residual concerns and anticipate this will be confirmed by the unconditional availability of RBL funds, expected to be announced early next year.”

As such Whittock believes the investment case has been de-risked and there is significant upside in the share price.

In today’s initiating note the Liberum analyst rated the North Sea firm as a ‘buy’ and set a 242p a share price target – which is some 135% more than the current price of 102p.

Looking forward the Liberum analyst reckons there will be significant potential further upside too as Xcite upgrades its reserves further as the field development advances.

And while he says that some funding concerns may remain through part of next year Xcite will be able to secure the necessary capital.

“We believe that between debt markets, industry partners and equity markets there is little doubt the financing can be raised. The only question is, given markets at that time, which source(s) can provide best value for shareholders.”

Whittock is expecting a series of positive updates from Xcite in the first half of next year – including an updated CPR, the DECC approval of the development plan and news of possible industry partnerships.

“These should provide the catalysts to move the share price closer to our value of 2P reserves (estimated at 246p) and, when the development of Bentley is clear, the experience of the team can move to focus on the next opportunity.”

The addition of new projects through the UK's 27th licensing round privided a hint of the new opportunities that Xcite is now also pursuing as it attempts to grow Xcite into a significant North Sea player

Results for the Periods Ended 30 September 2012

http://www.moneyam.com/action/news/showArticle?id=4481156

http://www.iii.co.uk/tv/episode/outlook-xcite-energy-xel

Nice little rise in a poor market today.

XEL getting excited again, but we have seen this in the past and it has all just fizzled out

I bought a few more thousand early this morning for my ISA trying to bring my average down but still sitting on a loss on these.

CAZA i have had a very good run on........sitting waiting for more good news from them.

NOW HOLDING INTO A 50% INTRADAY RETRACEMENT

Sould be bouncing from here, though the 4.50p loss from the high is far too much to undertand after such exitement this morning

MJ - i don't know how much you follow XEL, but it has a bad record of late of getting quite excited and then just drifting away again, both for no obvious reasons ..... even the volume today does not look unusual

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continuing with the bounce back as most likely the overhang was cleared yesterday >>>>>>>>>

3 matching trades totalling over 11M
delayed reported done on the 9th and 13th

i know MJ loves bollinger bands, so here below a little chart .....



MJ - given that 25+200 dma coincide at 101, do you have any confidence that sp will manage to clear that hurdle, at least this time around?

re - Bollinger Bands

Maybe you could explaing what they say

I must say your chart with so many lines and no names for it spoilts the reading

edit - I think you have added a bit at the end just now

quite simple really .... you know what bollinger bands are and how they are formulated ......
red line = 25 dma
green line = 50 dma
black line = 200 dma

and no, i did not not add anything at all to my original posting of the above - you just didn't read it all :-)

Managed to make a proper one on a small span so it shows better

Also using EMA on the second one