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

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.

I see they finished well down on the day at 84.625p and tomorrow is end of the week

also see "cynic" follow me though with a loss to my close to 20% profit in less than 2 days and did not have to pay for the stock.

that is life in the stock market of up and down, so this days the motto is: any good profit take it before is too late and if any reverse cut your loses, otherwise could be a long wait for the share bounce back.

panto - before you start on one of your very silly and offensive rants, i'd actually been holding XEL for a long time ..... thus, it was for once a very sensible and intelligent move of mine to crystalise a fairly small loss against one that would have been about 25p greater a couple of weeks back

other than that, your final comment is spot on

===========

i know it goes against your general philosophy, but in this instance, if sp drops back to an arbitrary 70p, then it would certainly look interesting to buy back

or indeed perhaps a 25p greater loss in a couple of weeks. Who knows with this one.
My average is 150p, got to hold on.

DC - hard to accept, but that has to be the wrong philosophy

Just looked back and found they first discovered oil 7 yrs ago, been a long ride.


In 2007, an oil discovery was made on exploration well 9/3-1. A year later, the company appraised the find by drilling the 9/3b-5 well to a depth of 4,105 feet (1,251 meters), encountering heavy oil bearing Paleocene Upper Dornoch formation sands at 3,712 feet (1,131 meters). During the drill stem test, the well flowed at a rate of 150 bopd from a 50-foot (15-meter) section of the oil column.

Xcite Energy recovers ground as it signs collaboration deal with Statoil and Shell
08 May 2014 by Our Oilbarrel Staff

Shares in AIM-quoted Xcite Energy enjoyed a welcome surge this week after the heavy oil developer announced a collaboration agreement with Statoil and Shell. The company, which holds 100 per cent of the Bentley heavy oilfield in the North Sea, has agreed to share technical and operational information to evaluate potential synergies between Bentley and the Bressay oilfield.

Statoil, which holds 80 per cent of Bressay alongside Shell, delayed its development late last year amid concerns about costs, thought to be up to US$7 billion to bring the heavy oilfield onstream in 2018.

BVI-registered Xcite was once the darling of the AIM oil patch but its performance has disappointed over the last two years as the heat generated by its breakthough extended well test of 2012 dissipated. Tuesday saw the company regain some of that buzz, however, with its shares surging almost 29 per cent during Tuesday trading.

By Wednesday lunchtime, the share price had edged higher to trade at 93.25 pence as news of the collaboration whetted investor appetites for a more lucrative tie-up. This speculation is not new: in 2013 Statoil paid US$15 million for a package of technical data from an extended well test on Bentley, raising hopes that the Norwegian oil giant was lining up a bid either for the asset or the whole company. Investors may be more wary this time round.

Even so, the latest news is welcome as it is again a vote of confidence in the quality not only of Bentley but also of Xcite's approach to proving up the commercial potential of this heavy oil asset and finding a cost-effective development solution. A joint team from Xcite, Statoil and Shell will now work together to analyse existing information and develop proposals to potentially share infrastructure, assets and operational solutions. Xcite's CEO Rupert Cole said it demonstrated “the value that independent oil companies can bring to the North Sea to unlock major energy assets”.

There is no doubt that Bentley is a material asset. The average UKCS discovery size over the past ten years has been 25 million barrels of oil equivalent and 90% of current fields in production on the UKCS are producing less than 15,000 boepd. At ten times the average size of a UKCS discovery, Bentley is expected to have an economic field life of 50 years and modelled to produce 15,000 barrels of oil per day after 17 years of production and approximately 8,500 barrels per day after 35 years of production.

The big issue is how Xcite can monetise this resource base. Even a scaled back phased development approach requires deeper pockets than it can currently muster, notwithstanding its efforts to line up a slate of world-class partners on a shared risk/reward basis: last month, for example, it agreed an MoU with Amec and Arup to co-operate on the the design and development of Arup's self-installing, steel ACE platform for the Bentley field and another with Teekay Shipping for the supply of a bridge-linked Sevan FSO.

These kinds of agreements mean Xcite can refine costs, design and scheduling of Bentley to present a development-ready situation to reserves-hungry oil majors – and the collaboration with Statoil and Shell shows the asset is certainly on Big Oil's radar.

75 may be a good place to buy .... it's where it conveniently hits 25 dma

Thought there would be a pullback...very few shares go up now and stay up...very few...

bollocks ..... meant to get back in this morning, but got too tied up with contract matters and have missed the boat somewhat

Faroe Petroleum is another option Cynic.....pullback overdone this morning....will rebound...