.

oooouuhhhh : it's in the biggest risers of the day list...just....

http://contrarianinvestoruk.squarespace.com/

Is Xcite Energy really only worth 1.12 a share?
Tuesday, June 28, 2011 at 12:48PM
Xcite Energy's share price has been in free fall for the last few days on funding concerns. Given all the pessimism I thought it was worth checking back at a few facts. At today's current share price of 111p, Xcite has a market cap of 181 million.

Financing

■As at March 31st 30.2 million in cash
■There is unused SEDA of 56 million
On the state of the finances (from the interim report for the period ending March 31st 2011 http://www.rns-pdf.londonstockexchange.com/rns/2106H_-2011-5-24.pdf

"The cash balance as at March 31, 2011 was 30.2 million (three months ended March 31, 2010: 24,243,904), compared with 36.0 million as at December 31, 2010. The decrease in cash balance during the three months ended March 31, 2011 has arisen due to the on-going working capital requirements, principally the settlement of outstanding 9/3b-6 and 9/3b-6Z well creditors from the year end, with a corresponding offset from raising funds of 15.0 million as a result of three SEDA draw-downs and the settlement of year end receivables. Following a further two draw-downs during February 2011 totalling 10.0 million, through the issuance of 2,921,676 new ordinary shares, the SEDA facility was increased on March 18, 2011 by an additional 40 million, bringing the total facility to 100 million. On March 28, 2011 a further draw-down of 5.0 million was made, through the issuance of 1,558,314 new ordinary shares. As at the date of this MD&A, there remains unused SEDA facility of 56.25 million.

Taking into account the unused SEDA facility and the Groups financial obligations, the Group has forecast that it has sufficient financial resources for working capital for the foreseeable future and to continue the planning of the initial expenditure associated with the First Stage Production (FSP) of the Bentley field. "

The big ticket items to come are the payment of the final installment for the Rowan Norway rig (figure to be confirmed) and the beginning of FSP development (estimated $100 million).

Tax Relief

Xcite's Bentley oil field is a heavy oil field which attracts 160 million a year of tax relief on profits for up to 5 years. So 800 million of tax relief is available to Xcite which means it will probably not pay corporation tax until 2017. (see First Energy report 11 February 2011: fmlinfo.co.uk/uploads/xel/pdf/Focus-C-XEL_LN-2011-02-15.pdf page 8 "The UK governments recent scal changes in favour of heavy oil assets will allow Xcite to claim up to 800 mm in tax credit spread out over ve years. We expect the Company will not pay any tax until 2017

DECC Approval

Upon DECC (Department of Energy and Climate Change) approval, which is expected by late August, booked reserves for the core area of the Bentley field will increase from 28 million barrels to 115 million barrels. At the current market cap of $290 million, Xcite's booked reserves (as announced by TRACS in the May Reserves Report) will be worth $2.5 a barrel against Brent Crude which is selling at $107 a barrel. North Sea takeovers historically have been over $10 a barrel of booked reserves. At $2.5 a barrel, Xcite seems cheap to me!

The Rowan Norway rig has been completed and will arrive in the North Sea in Q4. Drilling for oil will be underway in late Q1 or early Q2 2012.

Bentley Alliance

BP have already committed $20 million to Xcite for field development. Could this be squeezed higher?

Looking at the SEDA and funding (BP and cash at hand), Richard Smith and his merry crew surely can't be contemplating a discounted placing at this level? You would have thought that the big hitters at Rothschild, Morgan Stanley and Oriel Securities would able to solve this without resorting to a 1 a share or below give away. Hopefully we won't be waiting until August to find out the answer!

Will xel have to find a farm in partner. How are they going to raise cash, with the sp a little over 1. Is it not better to give away a percentage and not dilute the sp.

In auction +24.6%

very heavy volume, but whether or not that presages anything interesting or even good, remains to be seen

Looking good

Has the funding been sorted, for 20% rise today with no news yet.

certainly plenty of scrambling for stock at the moment, but of course that might be just forced bear closing

Someone knows something is going on behind closed doors.

Just hope there is no sell off tomorrow

that's just wishful thinking ..... there are numerous instances of stocks rocketing one day on very high volume and subsequently just falling away again ..... such moves in either direction tend to be self-fuelling

News could stop a sell off tomorrow

profit taking will drop it,

how much? ..... sufficient for you to take a short position? ..... or are you just mouth and trousers?

Place your bets, up 5% +. The rise will be sustained

yeeeeeeeeeeeeeeeeeeehaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa!!! lol

That was not a very large yeha

lol i will have to do better!! hope you are well dc and things going good for you
cheers

Thanks for that gibby,yeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeehaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa

Xcite Energy Limited (XEL)

Exchange: TSX Venture Exchange

$2.350 Jun 29, 2011, 3:58 PM EDT Change: 0.590 (33.52%)Volume: 148,920

Day Low
1.990 Day High
2.350 52 Week Low

0.930 52 Week High

6.360 Real-time Streaming Quotes Add to Portfolio Create Alert52 Week Information close
52 Week High
2010-12-21
Close: 6.360 52 Week Low
2010-07-15
Close: 0.930



QuoteChartingNewsCompanyFinancialsPrice HistoryOptionsResearch Back
Drawdown on Equity Line and Directors' Share Purchases
Jun. 29, 2011 (Marketwire Canada) --

ABERDEENSHIRE, UNITED KINGDOM--(Marketwire - June 29, 2011) - This announcement is not for release, publication or distribution in or into the United States.
Xcite Energy (TSX-V: XEL) (LSE: XEL) (AIM: XEL) announces that it has drawn down on its Standby Equity Distribution Agreement ("SEDA") with YA Global Master SPV Ltd ("Yorkville") in the amount of 12.5 million (CAD$19.5 million). This draw down has been undertaken at a price of 1.18 (CAD$1.84) per share and will result in the issue of 10,593,220 ordinary shares of no par value in the capital of the Company (the "SEDA Ordinary Shares") to Yorkville. This funding will be used as future working capital for the Company and to progress towards the first stage production of the Bentley field.

Subject to the terms of the SEDA and except in accordance with Canadian securities laws and with prior written approval of the TSX Venture Exchange, the SEDA Ordinary Shares may not be sold or otherwise traded on or through the facilities of the TSX Venture Exchange or otherwise in Canada or to or for the benefit of a Canadian resident until the date that is four months and one day from the date of issue.

Application will be made for the admission to AIM ("Admission") of the SEDA Ordinary Shares upon approval of the share issue by the TSX Venture Exchange. The SEDA Ordinary Shares will rank pari passu with the Company's existing issued ordinary shares (each, an "Ordinary Share").

The Company has engaged Arbuthnot Securities Limited ("Arbuthnot") to assist in the placing of the stock acquired by Yorkville pursuant to the SEDA, for which it will be paid a fee of 82,800 (CAD$129,000). Arbuthnot, as agent for the purchasers, has agreed to acquire 5,508,475 shares acquired by Yorkville pursuant to the SEDA, including stock to be acquired by directors of the Company.

The Company has received communication that two of its directors, Rupert E. Cole and Stephen A. Kew intend to purchase, using entities controlled directly by them, through Arbuthnot, respectively, 1,000,000 and 1,000,000 Ordinary Shares of the Company at a purchase price of 1.18 (CAD$1.84) per share from Yorkville on the date of closing of the issuance of the SEDA Ordinary Shares to Yorkville.

Following the purchase of the 1,000,000 Ordinary Shares, Mr. Cole will hold an aggregate of 6,198,334 Ordinary Shares. Following the purchase of the 1,000,000 Ordinary Shares, Mr. Kew will hold an aggregate of 6,212,619 Ordinary Shares.

Subject to approval by the TSX Venture Exchange, following the issue of the 10,593,220 Ordinary Shares the total Ordinary Shares in the Company in issue will be 175,591,947.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Oriel Securities which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for Xcite Energy and for no one else in connection with the subject matter of this announcement and will not be responsible to anyone other than Xcite Energy for providing the protections afforded to its clients or for providing advice in connection with the subject matter of this announcement.

Morgan Stanley which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for Xcite Energy and for no one else in connection with the subject matter of this announcement and will not be responsible to anyone other than Xcite Energy for providing the protections afforded to its clients or for providing advice in connection with the subject matter of this announcement.

ENQUIRIES:





Xcite Energy Limited





Richard Smith