Xcite Energy Limited (XEL) is a heavy oil appraisal and development company, with current interests in three licence blocks in the UK North Sea, all of which are held with 100% working interests through its wholly-owned UK subsidiary, Xcite Energy Resources Limited (XER).

Its primary focus is in bringing the Bentley oil field on Block 9/3b into production and in doing so becoming a significant independent oil producer in the North Sea by 2014.

Business Strategy

Bring the Bentley field into commercial production

Grow its reserves base from the existing 116 million barrels of oil equivalent
(“MMboe”) of 2P reserves through the conversion of its prospective resources base

Grow its resources base further through drilling activity on Blocks 9/3c and 9/3d

Employ enhanced oil recovery processes (“EOR”) to further increase its resource base

Increase its asset portfolio through license rounds and asset transactions whilst utilising its heavy-oil expertise to leverage opportunities


http://www.xcite-energy.com/

2012 in Review and the way ahead Robert Cole Video

After this sudden burst into life....I fear that the sp might trickle back down again as there are very few rns's from this company.....and Bentley is taking ages to get going so....still nice to some rise ....

The spike on share price continues this morning with AUCTION on the way as it rises too fast.

another 10p up so far and looking good

back in profit soon.,.

Is Xcite set for a bidding war?
By Harriet Mann | Tue, 6th May 2014 - 13:06

A collaboration agreement between a subsidiary of Xcite Energy (XEL), Royal Dutch Shell (RDSB) and Statoil (STO) has prompted rumours of a takeover.

The market reacted positively to the news and Xcite's share price rose by over 16% in morning trading to 74.25p with a spread of 0.75p. The group has a market capitalisation of £185 million and was the best performer in the AIM 100 index, which was down in morning trading.

Xcite Energy Resources (XER) and the two leading oil and gas companies will share field-specific information for the evaluation of collaborations between the Bentley and Bressay fields. The trio will work towards using common infrastructure, assets and operational solutions in the fields' development.

The Bentley field is 100% owned by XER. Statoil has a 81.625% working interest in the Bressay field and Shell holds the remaining stake.

Chief executive Rupert Cole said: "We are pleased to continue to work with Statoil and Shell in this important initiative and, following their purchase of the Bentley EWT data in 2013, believe that it demonstrates the value that independent oil companies can bring to the North Sea to unlock major energy assets.

"We also believe that the principles contained in this Collaboration Agreement complement the recent UK Government commissioned report, 'UKCS Maximising Recovery Review' by Sir Ian Wood, and will provide an important early framework through which additional value can be captured in area development scenarios."

How Much Lower Can Xcite Energy Limited Go?

By Rupert Hargreaves - Tuesday, 6 May, 2014 | See also: XEL
http://www.fool.co.uk/investing/2014/05/06/how-much-lower-can-xcite-energy-limited-go/

Xcite Energy (LSE: XEL) shareholders have every right to be disappointed in the company’s performance so far this year. Indeed, even after the company reported a stellar set of pre-production flow test results from its Bentley oil field at the end of last year, the oil minnow’s share price has gone nowhere but down during the past few months.

However, Xcite announced some great news this morning, revealing that the company had entered into a collaboration agreement with Statoil and Shell, allowing the parties to evaluate potential synergies between the Bentley and Bressay Fields. This agreement has opened up the possibility of a joint venture between Xcite, Shell and Statoil.

Still, the question remains, even after this good news, will Xcite’s shares push back to their 2011 high of 400p, or retest the 2010 low of 35p?

The bigger picture
oil rig

Unfortunately, Xcite is facing several headwinds going forward, none of which are under the company’s control.

For example, it is widely believed that Xcite is unlikely to receive any takeover or joint-venture offers to develop the Bentley field, until the Scottish referendum has taken place.

Further, the company is constrained by operating conditions within the North Sea. Specifically, ageing infrastructure, high tax liabilities and high costs are three factors driving oil companies away from the region.

Still, the recently released Wood Report, commissioned to establish the best way of extending the North Sea’s life and boosting the UK’s oil production, contains many recommendations that would make the region more attractive to investors.

Thankfully, the proposals put forward within the report are likely to be adopted after the outcome of the Scottish referendum; both the Scottish and UK governments have voiced their support for the reports proposals.

Additionally, Xcite’s management remains proactive and are doing everything possible to speed up the development of the Bentley field.

During the space of the last year alone, Xcite has signed an offtake agreement with BP, a memorandum of understanding with AMEC for the development of the Bentley field,another memorandum of understanding with Teekay Shipping for the provision of shipping services for Bentley field infrastructure, and as mentioned above, the collaboration agreement with Statoil and Shell.

But how much is Xcite worth?

Of course, the key question on everyone’s lips is how much is Xcite actually worth and are the company’s shares under, or overvalued at current levels?

My preferred method of valuing oil exploration companies like Xcite, is to compare the company’s PV-10 figure to its enterprise value.

The PV-10 ratio attempts to show us the future value of all of the hydrocarbon reserves held by the company, net of extraction expenses. Therefore, oil and gas companies trading below their PV-10 figure are often considered undervalued.

Xcite’s PV-10 value of proved and probable reserves stands at £4.5bn, after the deduction of tax this figure drops to £2.1bn, significantly above Xcite’s current enterprise value of around £250 million.

So, as Xcite is currently trading at a huge discount to the value of its oil reserves, it would appear that the company is seriously undervalued.


Risky business

Xcite appears undervalued at current levels, although one thing to remember is, that the oil business can make you rich but it can also make you poor. That's why the best investors build a portfolio with a combination of both risky oil companies and reliable dividend paying stocks, reducing risk and allowing you to sleep soundly at night.

To help you build your dividend portfolio, the Motley Fool's top analysts have put together this free report revealing the secrets on how you can "Create Dividends For Life".

Just click here to download the report for free today!

Rupert owns shares in XCITE ENERGY LIMITED.

The intraday shows the same as yesterday, once the profit taking / 50% retracement on the up again

looking good for another step up some big buys coming through now, but how far will she go, undervalued definitely............good to see rise

well mr panto, do you think this is a fundamental sea-change or just lemming-led stuff? ..... or aren't you fussed either way?

volume is certainly very heavy, for the average is only about 1.5m and already it's 4.5m

Its excite...ing

Plenty of MMs manipulation this afternoon, as many trades( all at the same time ) suddenly disappearing on the order book.

most likley they wanted some panic by the sellers to filled their books again for tomorrow

From today's Daily Telegraph:

"Xcite Energy 82p +18.25p
Questor says HOLD

INDEPENDENT North Sea developer Xcite Energy announced an agreement with oil majors Shell and Statoil that sent shares in the Aim-listed oil business up almost 29pc. If the data shows commercial production is possible then it could start a bidding war for the UK-listed oil minnow.

The successful development of the Bentley heavy oil field is critical to Xcite. The company doubled its estimates of the potential reserves there last year. However, the gap between large estimates of reserves and actually getting the black stuff out of the ground is very wide.

Xcite moved a step closer yesterday but getting the Bentley field into production is forecast to cost at least $700m (£416m) before the project turns profitable, which is expected towards the end of 2015. Xcite has some flexibility as regards its ability to finance itself, although it is seeking a partner to help it exploit the field.

An Xcite division and the two oil majors will share field-specific information for the evaluation of the field. The trio will work towards using common infrastructure, assets and operational solutions in the field’s development.
The Bentley field is 100pc owned by Xcite’s Energy Resources unit.

“We are pleased to continue to work with Statoil and Shell in this important initiative and, following their purchase of the Bentley data in 2013, believe that it demonstrates the value that independent oil companies can bring to the North Sea to unlock major energy assets,” said Rupert Cole, Xcite chief executive.

Xcite shares are certainly not for the faint-hearted, having traded in a wild range from lows of about 4p in late 2008 up to nearly 400p in early 2011. Questor thinks yesterday’s announcement removes some of the risk and those with a healthy appetite for the risk still remaining, and who can stomach some wild moves, could benefit if the data is positive.

Starting to get weak on the order book, with not much volume and mosly selling, so I did the same at 90.33p

lemmings exit left :-)

well I am still on bored, gut feeling it will be slightly down today or back in the blue, then take off again on Friday, neck on block.

plenty of volume today, only 200 more sells so all to play for

The company is worth 300p...perhaps more....I'm at a loss here but it's nice to have a rise.....long may it continue...not much news from this company that's the trouble....

i sold my balance at a far lesser loss than it was 7/10 days ago
however, that does not preclude me buying back in as i'm pretty sure we'll now see the lemmings getting out with no more news due any time soon

HOW LONG BEFORE OIL COMES OUT OF THE SEA BED, MONTHS/YEARS ?

dreamcatcher i was hoping more the company would be bought out, more buys than sells now so hoping blue before end of day.

I suppose you have to ask, why it has not been bought out to date marky. I suppose like many investors I never thought it was going to take so long and the sp declining over the last year. I hope it is bought out otherwise at this pace it will be years. So many of these small oils comps look good when they are researched but perform so poor for the run of the mill investor. I hope it does well.