.

unless you have a special arrangement, it's only UK stock you'll be able to buy ..... arguably they go hand in hand, but it's not necessarily the case

and today's gyrations show exactly the potential problems i highlighted

hmm, Like our chart this end looks pretty close to theres ? no real dumps in sp between them today, whats the difference, am I missing something ?

Can you explain seriously, because honestly I'm not with you at all here.

So if I said tomorrow isn't going to be a good day here, would you agree ?

My view, tomorrow won't be very nice so i'll wait till next week or further to enter maybe, whats your take on this ?

Could well be a run of profit taking on Friday so it may be better to wait for next week to collect some more.

though uk sp should run parallel with canada, it doesn't necessarily work that way, especially with regard to spread and also times are out of sync ...... if canada is the main "home", and you rate this company - i agree it's prospects are pretty good though its cap is very small - then perhaps try to arrange to deal in canadian stock

http://www.proactiveinvestors.co.uk/companies/news/10999/arbuthnot-gives-extremely-undervalued-xcite-a-strong-buy-rating-sets-target-at-133-pence-10999.html

Friday, December 04, 2009

Arbuthnot gives 'extremely undervalued' Xcite a 'strong buy' rating, sets target at 133 pence


Arbuthnot initiated coverage of Xcite Energy (AIM: XEL), giving the North Sea explorer a “strong buy” rating and setting the target price at 133 pence, which more than favorably compares to the stock’s current value of 39 pence.

The broker said that projects like the “extremely undervalued” company’s sole asset, the wholly owned Bentley viscous oil field, one of the largest underdeveloped fields in the North Sea, give the oil and gas industry the opportunity to boost reserves and further extend the productive life of a very mature oil province in decline, foreseeing a significant increase in investment into such projects. Viscous oil makes for 9 bn bbl (billion barrels) compared to the UK continental shelf’s total resource of 20-25 bn bbl and needs to be developed to extend the productive life of the North Sea.

The valuation was based on the current oil price of around US$80/barrel and the company’s resource base, which, if converted into reserves, could make Xcite the third largest independent oil company active in the UK North Sea and be transformational for the share price. A report prepared by RPS Energy determined an NPV (net present value) of US$181 million and recoverable resources of 72 mmbbl (million barrels) as the low case scenario, translating into a valuation of 133 pence per share.

The stock’s market value is expected to reach US$2-3/bbl, while the current value stands at US$0.40/bbl.

The Bentley project is currently at the pre-development stage and a pre-development well is due to be drilled in early 2010. In the event of a positive outcome of the well, the company will determine how to commercialize the field, hoping to ...............

Shares tip...one of the plays of the week....

The Arbuthnot Nov 09 note on XEL :


http://www.xcite-energy.com/docs/FINAL%20XciteEnergy271109.pdf


.

Nearly 1 C$ a share in Canada. Closed up 5% at 0.98.

Tick tock.

L2 solid blue.

Now 4 v 2 @ 55/59

ARBT/LIBC/FOXY/CANA all

WINS/SCAP offering

XEL is getting boring...will sell it now.

http://www.oilbarrel.com/oilbarrel_forums.html


18th February 2010
9.30 am - 1.30 pm

The Brewery, Chiswell Street, London EC1Y 4SD

Presenting companies include:

Resaca Exploitation Inc
Dominion Petroleum Ltd
Serica Energy Plc
Chariot Oil and Gas Ltd
Xcite Energy Ltd
DVM International Ltd
For further details please contact Mary Smith at conference[at]oilbarrel.com

Due to overwhelming demand for places at recent conferences we regret that anybody who does not register prior to the event will not be allowed admittance on the day.

due to underwhelming excitement about XEL in the City, you may not miss much!

cynic, if the test well which spuds in a few weeks turns out well, you might find the city clambering over itself to try to get into XEL.

Such is life.............patience is the virtue.

i shall be more than happy to climb in after the event if it's warranted ...... there'll still be plenty of money to be made at far less risk

currently stupidly wide spread (52-55.5), with MMs only offering in batches of 5,000 maximum, and wowee!!!! - a huge volume today of 16,500 shares

Strong again today, I expect continued buying into the spudding of this well. The result could mean quite a strong re-rating for Xcite.

I agree with cynic...the spread does not make it attractive at all.

Yes, but people were saying that at 10p, 20p, 30p, 40p and now at 50p levels.

Tipped in The Times


NEWSPAPER SHARE TIPS (19 JAN 2010):

Newspaper Company Stance Price

The Times Bunzl Buy 639.5p
The Times Asos Hold on 434.5p
The Times Xcite Energy This is worth a punt 56p

http://business.timesonline.co.uk/tol/business/markets/article6993043.ece

From The Times

January 19, 2010

Expect more deals as ‘boring’ Bunzl returns to takeover fray

Nick Hasell: Tempus

RECOMMEND?

Boring it may be, but Bunzl — the distributor of carrier bags, plastic cutlery, protective masks and thousands of other disposable items for gro..............

...........Xcite Energy

Viscous oil need not mean a sluggish share price. Ask Xcite Energy, the AIM-listed explorer that owns the licence to Bentley, one of the North Sea’s biggest undeveloped fields of heavier-grade oil. Its shares rose more than 16-fold last year, making Xcite one of the best half-dozen performers in the London stock market. The oddity is that, on most measures, they still look inexpensive.

The company is best considered a lower-risk developer rather than a wildcat explorer. Conoco discovered Bentley in 1977 but was looking for lighter oil and moved on. However, subsequent improvements in extraction technology and a persistently high oil price have made the field commercially feasible. On independent estimates of 160 million barrels of contingent resources, Xcite ranks as the third-biggest North Sea independent, behind Premier Oil and Dana Petroleum. Critically, at its present stock market value, Xcite is valued at less than $0.50 a barrel, against a peer-group average of between $2 and $3 a barrel.

The difficulty is that Xcite still needs to drill an additional well if it is to meet its target of first oil by summer next year, suggesting that a $40 million fundraising is required. Further, rather than “farming out” the field to an oil major, Xcite, run by former Conoco executives, is pursuing a partnership approach, a common model elsewhere in the world but unusual for the North Sea.

However, the presence of Statoil, of Norway, near by raises the prospect of shared costs — or an eventual bid. At 56p, this is worth a punt.

a major prob of buying XEL is that it is an MM stock only, and thus almost impossible to get decent deals .... further, MMs only offer in lots of 5k max, which is pretty dire