.

Mention in the FT.

http://www.ft.com/cms/s/0/0788dd7a-0c76-11df-a941-00144feabdc0.html

Hopes rise for Xcite Energy

By Neil Hume and Bryce Elder

Published: January 29 2010 02:00 | Last updated: January 29 2010 02:00

Xcite Energy was in demand yesterday, rising 8.7 per cent to 50p on news of a supply and financing agreement with BP for its flagship asset.

Xcite owns the Bentley heavy oil field, which is one of the largest undeveloped fields of the UK continental shelf. If the company is able to convert the resource base of viscous oil into reserves, Xcite would become the third-largest oil company active in the North Sea, according to analysts.

"This is a very positive step for the company, which has now attracted two very strong partners [Fugro, and now BP] to commercialise the field, said Dougie Youngson of Arbuthnot Securities. "The announcement de-risks the development phase of the project and also enhances its economics as the heavy oil discount should be reduced."

The likes of BP don't get jump in with minnows unless it is an almost sure thing......could say the same with the TLW-AEX relationship but to me that is a little bit riskier.....in XEL and AEX by the way plus TLW not BP. at the moment.

the rns re fugro was a positive, and of course, this latest one, even more so ..... however, unless i have missed something, there is no timetable as to when XEL will start drilling .... if so, no wonder sp is totally stagnant

.

XEL is starting to show lowering peaks.
SELL.... Now 46.5p

certainly a disappointing day for this stock when most oilies were strongly ahead ..... see my post 98

Funny isn't it.

The stock is up 1000% (yes one thousand) percent in 12 months and people start seeing a little profit taking as "bad signs".

LOL :)

The coming drill could see the price zoom past 100p and more, now, for those with 1000% gains they might take a little profit, others will be coming in for the potential 100% short term and the other 1000% in the longer term possible.

I will add more at 40p, if it goes there.

in that case please tell us when this drilling prog is to start, as i have seen nothing

It's 40p now. Have you added more, Proselenes?

You didn't have to wait long for it.
In my opinion, it's back to 20p.

Crazy drop.....nuts....those you want to get in should in my opinion.

hyleo - so have you shorted? ..... if not, then suggest you do and marry money to mouth instead of hotair to same - and no, i do not hold these

Good for you, cynic. Wow...u seem to be in a real bad mood today.

i take it that you haven't shorted this or any other stock then, so clearly no belief in what you say or no balls or both

Well, to be honest, shorted at 48p. Wanted to short at 50p but missed it.

hyleo - it's incredibly easy to paste up charts when markets have plummeted or rocketed, but their validity becomes slightly questionable, as baby and bathwater do tend to intermingle at these times

RNS out and explains the quick drop to 40p.

Placing ahead for the EPS. Get that done around 40p and away we go with the drilling.

Rumour says placing price to be 41p

News today. Rumour is placing price circa 41p.


http://www.proactiveinvestors.co.uk/companies/news/13067/xcite-energy-raising-funds-through-placing-to-progress-bentley-oil-field-development-in-north-sea-13067.html

Xcite Energy (AIM, TSX-V: XEL) has appointed book-runners to conduct an equity placing to finance the development of its Bentley oil field in the North Sea. The company estimates that approximately C$50m is required in total. To facilitate the equity financing the company hired Arbuthnot Securities in the UK and Octagon Capital Corporation and CIBC World Markets in Canada.

The net proceeds will be used primarily to fund the C$40m drilling and flow testing of a pre-development well on the Bentley oil field. Additionally C$5m is intended for early production system planning and engineering, and a further C$5m will be raised for general working capital purposes.

The planned pre-development well represents the company’s next step towards full production following the BP (LSE: BP) off-take agreement signed in January 2010. The international oil major’s BPOI unit will sell the crude from the Bentley field in return for an incentive-based fee per barrel. The off-take fee is directly related to the realised price achieved by BPOI for the Bentley crude oil in relation to the prevailing Brent crude price, thus incentivising BPOI to maximise the price per barrel achieved for XER by minimising the discount to Brent crude.

Furthermore the FTSE100 constituent is also supporting the commercial development of the Bentley oilfield. BPOI will procure US$20 million of financing from a commercial bank for Xcite and provide credit support from BP once Xcite moves to full field development.

Last month, Xcite said it will be drilling the development well in the current first quarter of 2010. Last October the company announced an agreement with Fugro Well Services Ltd to drill and test the well, called 9/3b-R, on a risked basis. Fugro will bear a material percentage of the cost of the well in return for a commitment to be engaged to carry out future work if the well is successful. Fugro has joined the Bentley Alliance, a management and operational structure created by Xcite to direct the Bentley field into full field development.

According to Xcite, the Bentley field is among the largest undeveloped heavy oil prospects in the North Sea. Its resource estimate was last year upped to 690 million barrels of oil (mbo) with the upside at nearly 890 mbo following a 3D seismic survey.