.

TFC

I thought you must have traded RKH

Oh dear what will this news today mean for oil stocks should it be true (which it will)...... ?? ;)


Oil & Gas News:

Goldman Sachs has said that oil prices will be substantially higher in 2012 due to shirking global stockpiles and increasing global oil demand.


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After trading lower all day , us crude has jumped up...over 87 us dollars now.....looks like 90 plus could be on the cards once again...oilies should rise in turn if confirmed...gold is down today but silver is rising....

cashed in my small purchase of the other day for a very acceptable profit ..... was morbidly obese and now just severely o'weight!

P,

What's a shirking global stockpile?

Is that what eating in Nice does to you cynic??

hi man ..... it's the oysters! .... another good evening and also been good biz here .... (TFC!) went to Acchiardo, which may not be best for seafood but is like Marenda used to be, so ate and flirted well!

blackdown, its the new shrinking.

OK, that explains it.

I would estimate that its between 3 to 6 days now for the flow test to kick off.

Spotted by Jimarilo at AFN. It seems the Ocean Nomad rig has been extended on site for an additional month (prior end date of 30/Nov changed to 31/Dec).

Does this mean, is the question, that they will test the Jurassic in an updip position given the oil shows that were found during the pilot well drilling ? Is the extension and extra work the reason for the recent drawdown ?


This was from the Kingfisher Fortnightly Bulletin 2 weeks ago

Drilling Operations Bentley 9/03b-R (Update 16-08-2010)
Drilling Rig/Ship Start Date Finish Date Installation Name/ Well No Position
Ocean Nomad 04-09-2010 30-11-2010 Bentley 9/03b-R 5956.114'N 00131.681'E

This was from todays and states finish date one month later (31-12-2010)

Drilling Operations Bentley 9/03b-R (Update 01-11-2010)
Drilling Rig/Ship Start Date Finish Date Installation Name/ Well No Position
Ocean Nomad 04-09-2010 31-12-2010 Bentley 9/03b-R 5956.114'N 00131.681'E

The table below gives a value to Xcite based on the global oil price, the discounts for heavy/tax incentives for heavy are built into the final figures. It is also based on 160 Million recoverable barrels. The figures need to take into account recent drawdown but hey, not far away.








So lets be bold :

160 MM REC barrels and 90 US$ global oil price = 910p XEL

200 MM REC barrels and 80 US$ global oil price = 1012p XEL

230 MM REC barrels and 80 US$ global oil price = 1164p XEL

260 MM REC barrels and 80 US$ global oil price = 1316p XEL

260 MM REC barrels and 100 US$ global oil price = 1839p XEL



But anyway, nots let get carried away until the oil flows on the test, then we can really get carried away.

News today, funding line increased from 20m to 40m to expedite first production.

All sounds very confident.

Strong buy and 247p "pre drill results" target much as before, the big question remains how big, on success, will the "post drill results" target be.....



http://www.proactiveinvestors.co.uk/companies/news/23023/broker-roundup-ferrexpo-xcite-energy-gulfsands-petroleum-ovoca-gold-deltex-medical-23023.html


Arbuthnot Securities analyst Dougie Youngson expected investors to respond positively to Xcite Energys (LON:XEL) decision to double the size of its equity draw-down facility.

According to Youngson, access to the additional capital provides enough working capital for Xcite to move into the development phase.

The analyst emphasised that Xcite is currently working on a flow test at the Bentley field, which will be crucial.
Youngson rates Xcite as a Strong Buy with a 247 target........

.

247 is where sp is already, so when was that note put out? ..... surely not yesterday ..... that would be akin to issuing a sell note will a raised target!

No cynic, the analyst said they will not raise the target price as now its a case of success or not.

What they said they will say its that its still a strong buy, even though it may rise over the target price.

In effect they are saying ignore the target price until results are out, its in effect a strong buy whatever the price in their opinion.

It would be terrible if this was not a big success but it looks good to me...not an expert in oil so just guessing but the pay zones to me look incredible.....can this not flow now ?.....I would say it will but ?......

that's a real politician's answer, hedged as one would expect so that if there is disappointment they'll claim "strong buy" was always predicated by a successful flowtest

I was hoping for some views ......sp slipping up....I think that this will be a success...