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

Share holders shafted in preference to the bond holders. Nothing left for share holders.

StockMarketWire.com
Xcite Energy has noted the recent rise in its share price and provides an update on the restructuring of its $135 million senior secured bonds issued by Xcite Energy Resources plc.

As announced in its full year results for the year ended 31 December 2015 on 21 March 2016, the Company has been in discussions with its principal Bondholders with respect to a potential restructuring of the Bonds and, on 16 June 2016, it subsequently announced an extension to the maturity of the Bonds until 30 September 2016 in order to continue those discussions and allow it to resolve terms for restructuring the Bonds.

At the time of this maturity extension, the Company highlighted that while those discussions had been constructive, no terms had yet been agreed, and that should agreement on the terms of a restructuring be reached, it was likely that this would involve a reduction in the balance of the Bonds in return for an equity stake in the Company.

Whilst terms of the restructuring have still to be agreed, the Company now believes that there will be a minimal residual equity stake attributed to the Company's existing shareholders following the restructuring.

The Company will update shareholders as soon as any further information relating to the restructuring of the Bonds can be made available.

Proactive investor -

Is there any recovery hope for Xcite Energy?



15:10 13 Sep 2016

The kernel of Xcite’s problem is US$135mln of senior secured debt

picture of oil rigs

Oil price slide has hit sector hard


Xcite Energy, formerly one of the most actively traded and popular stocks with private investors, lost around three-quarters of its value yesterday in a brutal early session.

Precipitating the movement was what looks likely to be a punitive debt-for-equity swap that will dilute existing shareholders to the point of being the most minor, or minority owners.

It is not the first fallen star of the oil exploration sector to tread this path.

Gulf Keystone Petroleum (LON:GKP), which took its legion of investors to the moon before burning up on re-entry, is undergoing a US$500mln refinancing that will cede the banks control of the business.

But for Xcite (LON:XEL), whose shares were up strongly on Friday, any prospect of a more generous settlement has been well and truly stubbed out.

“Whilst terms of the restructuring have still to be agreed, the company now believes that there will be a minimal residual equity stake attributed to the company's existing shareholders following the restructuring,” the firm said on Monday.

A footballing cliché is apt here: It’s the hope that kills you.

So how did we get to this point?

The kernel of Xcite’s problem is US$135mln of senior secured debt.

The owner of the Bentley heavy oil field has been in restructuring negotiations bondholders for months now.

In fact the date on which these liabilities crystalised was pushed out to September 30 to allow the parties to “resolve terms” of a deal.

With that deadline just over a fortnight away comes this morning’s advisory.

The company is just one of a handful of former E&Ps that borrowed heavily in the boom times and are now faced with the reality of oil below US$50 a barrel.

But that’s too simple an explanation, really (although taking on debt with only a trickle of revenues from test production was always going to be a major risk).

It is the story of initial entrepreneurial zeal being overtaken by the harsh reality of being a small cog in a big machine.

For Xcite also took what it no doubt saw at the time as a calculated risk.

It opted to continue on drilling in order prove the full potential of the Bentley field before bringing in an industry partner to shoulder the costs of development.

It’s not an uncommon strategy and it’s an approach that could have added tens of millions to the sum a potential partner might pay to for a chunk of Bentley.

Initially things looked good. It built a number of partnerships with operators and incentivised contractors.

BP was unveiled as a marketing partner, helping Xcite sell its crude oil, while Baker Hughes was signed up for drilling and engineering.

Larger North Sea operators such as StatOil, Shell and EnQuest inked collaboration deals covering a variety of matters, including potential infrastructure sharing arrangements.

But none of them were the kind of ‘farm-out’ partnerships that investors (and one assumes management) hoped for where a larger, deeper-pocketed business shoulders the cost of construction and expansion.

It meant that Xcite was left as sole operator and developer of an asset that didn’t really fit the conventional mould. For while Bentley is estimated to be host to 900mln barrels of crude, it is thick, viscous heavy oil that often has to be blended or might sell at a discount to lighter products.

The lack of interest meant Xcite was forced to perform a financial juggling act.

The US$135mln bonds were issued in June 2014, replacing loans carrying an eye-watering 12.5% interest rate.

It was the latest in a series of interim measures that it was hoped would ultimately be vindicated when Bentley’s real value became more tangible.

The subsequent collapse in crude prices altered fundamentally the economics of bringing new fields online.

And it also it froze industry budgets for expansion, leaving very few options for alternative financing.

Now, the group’s shareholders are at the mercy of its bondholders.

The share price tells us all we need to know.

Back in 2010, when Xcite’s investors thought the company had a tiger by the tail, the shares were changing hands for 10p short of four quid.

Today, you can pick up the stock at 2.7p – yet even at that bargain-basement price there are few takers.

StockMarketWire.com
Xcite Energy's shares have been suspended from trading on AIM after bondholders told the company that they will seek the appointment of a liquidator.

The company announced on 27 September that it was concluding restructuring negotiations with the principal bondholders and expected to exchange 100% of the value of the outstanding bonds for 98.5% of the enlarged share capital of the company.

Xcite says the principal bondholders have informed the company that they are not satisfied that the transaction is capable of being implemented in a manner acceptable to them.

On this basis, they expect to instruct the bond trustee to petition the court in the British Virgin Islands within the next 10 days requesting the appointment of a liquidator to the company, which is expected to take effect approximately 4 to 6 weeks from the filing of such request.

On the basis of advice received by the company and the directors, the directors believe that liquidation is unlikely to result in the return of any value to the company's existing shareholders.

As a consequence, the directors have requested the immediate suspension of the trading on AIM of the ordinary shares in the company.

a sad demise for a company that promised much just a few years ago

It did amaze me why punters where still buying this..

Another one bites the dust........ happy christmas...... not :((

Could never understand why a partner never came forward. What happens to all that oil now ? Same here Balerboy.

the bentley field is heavy oil and not worth a lot per barrel
i don't know at what juncture it becomes viable to extract it, but presumably a lot higher than the present level

So along will come one of the big boys and all the hard work has been done.
I suppose the heavy oil can be used for power plants, ships and factories

it takes much more refining and hence its big discount to light crude
btw, ALL extracted crude has to be refined ..... you don't just extract it and send it off to the petrol pump or factory!

Cheers cynic.

22 November 2016

Court Hearing Date


Further to the Company's announcement on 25 October 2016, a petition to the Eastern Caribbean Supreme Court in the British Virgin Islands requesting, amongst other things, that the Company be placed into liquidation will be heard by the court on 5 December 2016.

29/11/2016 7:00am

NOTICE OF CANCELLATION OF ADMISSION TO TRADING ON AIM

XCITE ENERGY LIMITED

Trading on AIM for the under-mentioned securities has been cancelled from 29/11/2016 7:00am, pursuant to AIM Rule 1.

I bet this is a fraud of some kind......it has a big discovery in the north sea....was once a stockmarket darling !....crazy....

Don't I know it........ lost a lot on this one.