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Danny Boy is Xcited again...

http://brokermandaniel.com/2010/12/03/xcite-update-confucius/

Xcite Update. Confucius?
Posted by Brokerman in oil on December 3, 2010

Confucius speaks to Daniel

Goodness me theres an awful lot of emails in the in-tray some are asking for flow rates and such forth it is practically impossible to give them out other than to say that news is expected to be positive.

As for those who continually post abuse via the comments section your IPs have been noted and action may be taken. Some of the lesser human beings that inhabit the shadowy world of the internet and post quite literally disgusting abuse think that they are immune from detection, abuse has ranged from threats to kill to quite disturbing homophobia,racism,foul language and down right despicable references wishing for my children to die of cancer(By the way I dont have any children but thats not the point!)this is coming from 5/6 different IPs. So be warned in light of the recent court action taken by several oil companies this Blog will if it persists take action on these few individuals. Because we here are not short of a few bob!

Back to Xcite well its been a terrific ride here over the last few months especially the last two big spikes (foretold here). Theres a plethora of doubt still out there re flow test results but ask yourself this question just what are the riggers and crews doing right now at this minute? They are certainly not having a cup of tea!

The company informed the market that flow-testing would begin in early december we are in early december. The company contracted Knutsen tankers for the off-load Knutsen tankers are in the area the company told us they would be fast tracking production they have increased capital via drawdowns etc for the financing of the fast tracking. It does not take a Confucian genius to put the news together and come up with an answer. The share price is trending up because the Xcite planets are coming into alignment not because of a blog post! news is being sought from every corner of the market the watchers are on this one. It is up to each individual investor to research their investment we here do not give out buy or sell advice what we say is that Xcite are a very good company well-managed well-financed and very well partnered up with some of the worlds leading oil/technologically advanced companys.

A 400/500p price is probably on the low side over the short-term (thats 12 months in market speak not 2 days!) but nothing is ever what it seems. Take Arbuthnots broker target that has been smashed (as foretold) it really is up in the air they could just as easily double in a day depending on sentiment and good news.

So its eyes down here for Monday! News will break its already leaking!

Good Luck

Daniel

News today.

Oil & Gas News:

JP Morgan have said that oil prices will increase to USD 120 by the end of 2012 due to strong growth in demand from emerging markets. JP Morgan have also increased their 2011 price forecast for WTI Crude oil by 3.6% to USD 93.

http://www.proactiveinvestors.co.uk/companies/news/23650/xcite-energy-shares-advance-further-as-investors-await-crucial-bentley-flow-test-23650.html


Xcite Energy shares advance further as investors await crucial Bentley flow test
Friday, December 03, 2010 by Jamie Ashcroft

Today Xcite shares hit an all time high, while this time last year they were changing hands at just 40 pence

Just look at any basic chart to see how far Xcite Energy (LON:XEL, TSX-V:XEL) and the Bentley oilfield have come in the past year.

Today the stock advanced around 23 pence, or 10 percent, to hit yet another new high at 333 pence.

Investors are positioning themselves ahead of crucial flow test results from the Bentley heavy oil field in the North Sea.

Xcite recently completed the horizontal section of the well and flow testing was expected to get underway in the first week of December.

The Xcite share price has been through a staggering transformation in 2010, which will have seen some plucky investors doubling their money several times over.

This time last year Xcite shares were changing hands at around 40 pence.

Xcite shares finally broke through the 300 pence level yesterday, after testing it a few weeks ago in mid-November.

On Thursday, the stock rose from the previous close of 282.75 pence to end the session at 309.7, a 9.5 percent gain.

This marks a three-fold increase since October, after the initial drill results from the vertical section of the high profile appraisal well impressed.

In the vertical section the oil column was around 40 foot thicker than expected, with 113 feet of oil in a high quality Dornoch reservoir. The oil column had 100% of oil net-to-gross, and the well also confirmed the oil/water contact at 3,729 feet.

This is a significant outcome as it justifies the placement of the horizontal well, finance director Rupert Cole told Proactive Investors in October.

Cole highlighted that the pilot results confirm that the horizontal flow test will assess a good part of the reservoir.

The stock was then boosted further through November, as work progressed and Xcite reached target depth in the horizontal section of the well in early November.

On 8 November, Xcite told investors that it has successfully tracked the top of the oil reservoir, and the well provides over 1,800 feet of gross reservoir.

Ultimately the wells outcome is likely to be pivotal for Xcite. Investors and analysts alike are eagerly awaiting the upcoming flow test.

Last month Arbuthnot analyst Dougie Youngson commented: The drilling results so far have been extremely encouraging; we highlight that both the vertical and horizontal wells have shown that the reservoir is thicker, which increases the prospect that the oil in place will be towards the high case scenario, Youngson added.

The data collected so far, as well as the flow rate data, will be used to update the reservoir model and this will provide the basis for scoping any future development.

Lots of chunky buys around today, suggestive that, as has been said, more is known that is officially released as known within the inner circles.......

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Its worth remembering, the company staff are looking for 1200 bopd or more for it to be classed as a decent result.

This is what Wellington West said in June...

".........Due to the very similar oil and qualities of the two reservoirs and the solid results of the Bressay vertical test, we believe it would not be overly optimistic to expect a horizontal test rate out of Bentley in the range of 1,500 bopd 2,000 bopd........."

So anything over 2000bopd would be an out of this world superb result. Over 1200bopd decent and if over 1500 bopd its very good.

As the results get near its worth going over expectations again.

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time will tell, but the chances are that, unless the test results are truly staggering, there will be some hefty profit-taking on the announcement .... depending on one's own analysis/perception, that may well present a further good buying opportunity ..... for sure it would be pretty lunatic to be topping up beforehand

Took some very good profits this week...just had to....(had a shed load from very low).....in all probably sold 60% of my highest total....left with 40%.....you just have to take profits sometimes.....(I learnt the hard way I'm afraid)...

As a flow rate expectation reminder its worth noting the company wants over 1200 bopd.

Lower than that they will have to tweak the completion a little in order to boost the rate, all is not lost just will need a bit more work.

Over 1500 bopd would be a very good result.

If you get over 2000 bopd then you can call it a superb result.


Worth re-reading the Wellington West Update of Oct.

http://www.xcite-energy.com/docs/XEL_10262010%20Wellington%20West.pdf

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RF - glad you have some sense; your post reiterates my own oft-voiced views ..... only idiots (now who might fall into that category i wonder?) mock those who so act, though usually with the unerring benefit of hindsight

Thanks.....I'm still hoping for a good result on the flow test....might be monday morning.....when this vital rns is issued....

http://business.scotsman.com/business/Oil-firm-Xcite39s-shares-soar.6650220.jp

"Oil firm Xcite's shares soar 800% on Shetland field news

Published Date: 05 December 2010
By Perry Gourley

ABERDEEN oil firm Xcite Energy has been touted as the "new Dana Petroleum" as its shares rocketed to fresh highs ahead of an update expected this week on its exploration work in the North Sea.

The firm, based in a city business park, has seen a dramatic rise in the value of its shares amid positive news on its Bentley oilfield around 100 miles (160km) east of the Shetland Isles.

In February its shares were trading at just 35p on the Aternative Investment Market (Aim) but by market close on Friday they had risen by more 800 per cent to reach a record level of 332p, valuing the business at 518 million.

Shareholders - including Standard Life Investments which has 4.5 per cent of the shares - are sitting on stellar gains and many of the directors and senior management have been made paper millionaires in a matter of months.

Industry veterans Steven Kew, Richard Smith and Rupert Cole, who are executive directors of the company, each own more than six million shares, worth almost 21m.

The company's share price gains have also seen other managers at the firm share in a paper profit of more than 4.3m after 3.6 million share options were awarded to bosses in recognition of progress on the Bentley oil field.

When the options were granted just five weeks ago the share price was around 200p.

Xcite shares saw further strong gains last week after the company revealed a defensive "shareholder rights plan" to help repel a hostile takeover bid if necessary.

The plan allows existing shareholders to buy new Xcite shares equal to the amount they already own at a substantial discount if another party tries to acquire 20 per cent or more of the company in a bid.

Although it is not thought any takeover approaches are imminent, a further positive Bentley update could see the firm attract interest from a larger oil company. A report from house broker Arbuthnot recently said positive figures from Xcite's current well "would transform the company into the third largest independent exploration and production company" based on its North Sea reserves, behind Premier Oil and Dana.

The report also pointed out that unlike Dana, which has seen been acquired by Korean buyers, Xcite would have a "kingmaker" asset in Bentley rather than a fragmented portfolio."

let's hope the above is not just a pipedream ..... meanwhile, you guys should also keep an eye on PMO (Premier) which has not only been performing very well indeed, but has been mooted as a t/o target in recent weeks

have just banked further profits here, leaving myself still a bit o'weight but a lot more sanguine regarding the imminent RNS

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all starting to look a little flakey ..... we shall see

Ditto...funny that....still have plenty but happier with a reduced position as I had far too many....

i was watching live on L2 ...... no huge offerings that i could see, but almost all that came through were sales .... whether or not that was just prudent PIs like you and me, i do not know, but all should be revealed within the next day or two

Rumours abound on the other BBs.

Mainly that the flow test has not been completed and XEL have pulled out of the Oil Barrel conference (because they have nothing to report).

MMs must be very happy this afternoon.

Whilst I have no idea if the rumours are true, it's fairly typical of an oil stock approaching an important RNS.

tricky call it has to be said - especially if one is tempted to be greedy

If there are leaks out sp usually rise's pre report. must admit don't like the drop at this stage.,.