.

A good flow test and also some upgrades on recoverable barrels and OIP could easily see XEL trading in the 400p to 600p range.

Only a few weeks to wait for more news.

From Arbuthnot this morning, 247p present target price which will get a serious upgrade should the flow test be good, and another upgrade should the upside to the OIP and recoverable barrels figures be there too :)


"Xcite Energy* Strong Buy
XEL.L / 168p / 248.8m / TP: 247p

Xcite has announced its quarterly results ending September 2010. It highlights that the well is making excellent progress following the completion of the vertical well and the identification of a thicker than expected reservoir.

During the quarter the company has raised 3.4m via a combination of the equity drawdown facility (3m) and the exercise of shares and warrants (0.4m). The company is fully funded for the drilling campaign and we expect the completion of the well and flow test in late November.

Xcite continues to make good progress at its Bentley field; the initial results from the vertical well are particularly encouraging.

We continue coverage with a Strong Buy recommendation and target price of 247p.

Dougie Youngson, 020 7012 2098, dougieyoungson@arbuthnot.co.uk

UK equity research
1 November 2010"

Finished strong in Canada. I am sure more people must realise the potential here....... far better short term bet than EO. or anything like that in terms of upside in the near term.

i'm still very well in the money on EO. but it is certainly being somewhat tiresome of late .... meanwhile, XEL powers ahead and i bought some more yesterday (greedy bastard!)

i bought some more looking for 240p by friday then booooom 500p , 800p and about 15 in january.

Well berty, good luck with that !! I will be happy with 600p by Christmas.

Twitter :

Xcite update - Schlumberger guys heading out to Bentley this week to begin well test! Cmon XEL

12 minutes ago via web

Hedgef0x
Hedge Fox

where that from?

Twitter.

Hedgef0x

Lets hope we get some good results, sold my holdings in gkp a few days ago to top up in xel and missed out on the 30p increase.

silly boy......gkp going up and up, think you might regret that one thimar.,.

http://www.oilbarrel.com/nc/news/display_news/article/excitement-levels-build-as-xcite-energy-continues-with-critical-bentley-well/860.html

"......November 02, 2010
Excitement Levels Build As Xcite Energy Continues With Critical Bentley Well

Shares in Xcite Energy, the North Sea heavy oil specialist, have more than doubled over the past two months on the back of a key well on its Bentley field development. Monday morning saw the shares gain another ten pence to stand at 178.5 pence as chief executive Richard Smith used the release of the Q3 interims to say the results of the 9/3b-6 pilot well showed predictions for the Bentley field had been conservative
This is encouraging as the 9/3b-6 pre-development well has been designed to remove some of the uncertainties surrounding the commercial potential of this heavy oil deposit, which carries a contingent resource estimate of 160 million barrels of oil equivalent plus upside. Xcite management now believe the pilot well has confirmed the upside structure in the eastern half of the reservoir, significantly increasing the volume of oil in place.

The pilot section of the well confirmed a 113 ft oil column, some 40ft thicker than the 73 ft prognosis, in a good quality Dornoch oil reservoir, and confirmed the oil water contact at 3,729 ft total vertical depth (on prognosis). The oil column has 100 per cent net to gross, compared to previous average of 88 per cent. The pilot section also encountered 15 ft of Jurassic reservoir with oil shows. A horizontal side-track is now underway to flow test the Dornoch oil column, with completion and testing expected by the end of November. We look forward to the next few weeks with high expectations," said Smith.

Analysts at Edison Investment Research say the US$35-US$40 million well is critical and must achieve stable and explainable flow rates to give confidence for first stage production to proceed. The test equipment has been limited to 2,800 to 3,000 barrels per day to ensure low-end to mid-range performance: this is not about maximum flow rates but sustainable, stable production. The well should also help to move an initial volume of resources to 1P and 2P reserves, which would pave the way for a field development plan and possible first oil as early as next year.

First stage production would be around 15,000 bpd and the aim would be to iron out any longer term production issues associated with heavy oil developments, specifically water issues. This would not only de-risk the project before committing to full field development but would also generate revenues and book reserves, which if confirmed at 160 million boe or more would transform the 248 million market cap company, making it one of the more substantial independent players.

Bentley lies 160 km east of the Shetlands in a known heavy oil area, with Nautical Petroleums Kraken field and Statoils Bressay field as neighbours. The field was discovered by Amoco in 1977, before transferring to Conoco, which drilled three wells in the 1980s (one poorly tested, one untested and one was dry). Xcite acquired the asset in 2003 and drilled the 9/3b-5 vertical well in December 2007, which flowed 100-250 bpd despite formation damage. A CPR reckons a flow rate of 3,700 bpd could be achieved using a horizontal well. The crude is 10-12 degrees API with low sulphur and no wax and Xcite already has an offtake agreement in place with BP.

Indeed, Xcites management team have worked diligently to put together an alliance of technical and commercial partners, including AMEC and BP. This unique alliance financing structure incentivizes the partners for the work they do on a risk/reward basis yet sees the AIM company retain 100 per cent of the equity in the project......."

the dreaded oilbarrel self-promoting platform ..... i gave up reading stuff there a year or more ago, for exactly the aforementioned reason ..... shame there is not proper critical analysis there or it would have some credibility

On a charge for 200p, will we get to the 240p pre flow test results target price soon ?

and i thought i was brave (stupid and greedy!) topping up a few days ago at 179!

And you called me stupid for buying this at 20p as it was an "MM stock only".

LOL :)


Still is an MM only stock, but glad I was in at 20p.

you're stupid because, inter alia, you never bank profits .... for myself, buying at 47/67/81/179 has done me very well

Morning Balerboy,

bit happier this morning as starting to see a bit more of a gain, lets hope we see the 240p before the end of the week. GKP still looking promising as well.

Nice little post on TMF.

http://boards.fool.co.uk/xciting-options-12084293.aspx

.

Another 7 million in the bank and given them warrants to buy at over 3.60 a share.

That might be cheap in a few weeks time.

Anyway, looks like its full steam ahead and as the RNS says "without delay".