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http://www.proactiveinvestors.co.uk/companies/news/10391/xcite-energy-says-its-making-progress-towards-watershed-moment-as-it-prepares-for-first-development-well-in-north-sea-10391.html

Thursday, November 19, 2009

Xcite Energy Says Its Making Progress Towards Watershed Moment As It Prepares For First Development Well In North Sea

In its Q3 results statement, North Sea oil developer Xcite Energy Limited (AIM & TSX-V: XEL) said that its ‘Bentley Alliance’, will provide a watershed moment for the company as it begins the drilling of the first development well in the Bentley field in Q1 2010.

In the three months ended 30th September 2009, the group has continued to make progress with the planning for the development of the Bentley oil field. Xcite said its emphasis during the last quarter was on securing field partners and setting up the Bentley Alliance.

Xcite reached an agreement with Fugro Well Services Ltd to drill and test the first development well on the Bentley field, the 9/3b-R well, on a risked basis. Fugro will bear a material percentage of the cost of the well as the first Alliance partner.

Expenditure in the quarter predominantly comprised the costs of study work and planning for the next stage in the development of the Bentley field, including the preparation for the drilling of a technical borehole on Bentley, which is scheduled to be conducted during Q4.

The Bentley field is the company’s primary asset.

In the period the company reported a loss of 249,000, slightly widening from Q2 due to charges for previously deferred tax payments. Also in the quarter Xcite successfully completed a fund raising of 2.1 million The funds will be used to secure the necessary industry partners and to further commercial arrangements in relation to the development of the Bentley field.

Xcite said that it intends to pursue a number of commercial initiatives involving potential business partners and production sharing contractors to facilitate further work on the Bentley field. According to Xcite, Q4 is likely to be characterised by a low expenditure rate, with efforts focussed on advancing the concept of the Bentley Alliance and the completion of drilling the geotechnical test well.

Xcite Energy CEO Richard Smith commented on the company’s progress: "We are very pleased with the market's support for our recent fund raising and its positive reaction to the creation of the Bentley alliance with Fugro as the first partner. This represents a significant step forward in the development of the company and in drilling the first development well in the Bentley field, planned to commence in the first quarter of 2010. This will be a watershed event for the company and we look forward to continued support from shareholders in order to successfully pursue our strategy."

The Fugro Synergy drilling ship appears to be underway with its destination given as "xcite job". Its ETA date has passed, so we can assume therefore they are setting up preparing to spud the well.


http://www.shipais.com/showship.php?mmsi=311019800

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14% up in Canada......and the market is not open too long either :)

http://www.google.co.uk/finance?q=CVE%3AXEL


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Superb increase...much more to come in the months ahead !.

I think people have realised that spudding of the well is very soon, and its success has major implications for the "Bentley Field" and therefore the valuation of XEL.

We are on the move again it seems.

Spudding soon of the well, not far away.

gone nuts hasn't it .... but be careful as it is very thinly traded so inevitably very volatile

http://business.timesonline.co.uk/tol/business/markets/article6941725.ece

......Tiddler to watch

Shares in Xcite Energy gained 7p to 47p and could be in line for a good run. The group has a 100 per cent interest in the Bentley oilfield in the UK North Sea, which is one of the largest undeveloped oil projects in the region. Arbuthnot recently started coverage of the stock with a “buy” rating and a target price of 133p...........

why has it suddenly gone mad at this point though ?

Rig is setting up now, ready to start drilling fairly soon.


http://www.stockhouse.com/BULLBOARDS/MessageDetail.aspx?p=0&m=27688558&s=XEL&t=LIST&l=0&r=0



........Now that oil seems to be in that $70 to $80 range,one area of the world is probably going to start attract a lot more attention...the North Sea. This is an area of the world which involves pretty steep upfront costs for allthose expensive offshore platforms and for all those expensive British tradesmen.

Once you've got production on stream, the British government has some pretty tasty royalties that are actually encouraging oil production...unlike Alberta,
where they seem to be encouraging oil and gas companies to move to BC or Saskatchewan.

Some analysts such as Warren Verbonac of Octagon Capital suggest a basket of plays in the North Sea such as Sterling Resources, Xcite Energy, Antrim Energy (AEN)and Ithaca Energy (IAE), but not everyone has got all that much money to have a piece of everyone and heck—there are other areas of the world to explore.

Our preferred way is simply hoping Sterling (the toppick of Kevin Shaw of Wellington West) and Xcite Energy is the way to go. As we get closer to work actually starting on the Xcite Energy play in the North Sea, we expect more analysts to start publishing on it and morepeople to discover the play.

On November 27th, Arbuthnot Securities out of Britain publishes a report on Xcite Energy and frankly folks, Xcite will be one of the more exciting stories in the next few months as we have written up that they’ve got an awful lot of balls in the air as far as financings, when to get started, joint ventures with service companies, you-name-it. Management here might actually earn their pay
in a big way (and today, management makes us an even bigger fan as they set options that are at current prices...instead of what you usually see in the markets with directors giving them scads of stock at huge discounts and usually much more than they deserve).

The most intriguing thing about the Arbuthnot report is they are suggesting this stock will be a three-bagger if not better.

Analyst Dr. Dougie Youngson writes,XEL is extremely undervalued. The company is currently valued at c. 0.40/bbl, which in our view is derisory. Given the
current oil price of c$80/bbl and XELs asset base status, we would expect the market to value the company today in the region of $2-3/bbl

Youngson continues,Bentley is one of the largest undeveloped oil fields in the UKCS. If it can successfully covert the resource base into reserves, XEL will
become the third largest (in terms of asset size) independent oil company active in the UK North Sea."

ah I see, thankyou.

the very clear caveat is set out in post 18

??? by you ? LOL you only appear on upward swings, dont make me laugh !!

i don't care whether you take note of the caveat or whether you make enough to buy a yacht or lose your shirt - my caveat is nonetheless valid

But cynic, its a dual listed stock, and the volumes in Canadian trade are much higher.

http://www.google.co.uk/finance?q=CVE%3AXEL

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If AIM does not want to play ball, Canada will take up the slack.

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 ...............