Excitiing news yeterday re: Bentley

23rd Jun '09 by MrT

9 comments 3695 reads

Oil exploration and development compan focused on the North Sea on the United Kingdom Continental Shelf.
In 2003, XER was awarded its 100% working interest in the Bentley field in Block 9/3b in the UK North Sea. All of the Company’s current material assets are held through XER.
Since completing a private placing and dual listing in 2007 on the AIM and TSX markets (http://www.xcite-energy.com/docs/XEL%20Final%20AIM%20wrap.pdf), Xcite Energy’s sole focus has been advancing the Bentley Field towards development. Xcite believes that Bentley is one of the largest proven, undeveloped fields in the North Sea and is now focused on drilling pre-development well on the field. Xcite successfully drilled and flow tested the fifth well on Bentley (well 9/3b-5) at the start of 2008.
Excitiing news yeterday - http://www.stockopedia.com/news/announcement/XEL/090622xel003746.htm - that, after the re-interpretation of 3D seismic, the most likely Stock Tank Oil Initially In Place (‘STOIIP’) for the Most-Likely structure has increased to 689 MMbbls, with a range of 521 to 886 MMbbls for Down-Side and Up-Side structures, respectively.

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MrT

23rd Jun '09

According to this article- http://www.proactiveinvestors.co.uk/companies/news/6265/xcite-energy-increases-most-likely-oil-in-place-at-bentley-field-to-690-million-barrels--6265.html:

"The most likely aggregate contingent and prospective resources now stand at 160 million barrels of oil using conventional recovery techniques, giving a NPV(10) (Net Present Value discounted 10% per annum) of circa US$1 billion, using a flat oil price of US$80/barrel and a 15% discount for heavy crude. Take the upside structure most likely case contingent and prospective resources of 235 million barrels, and the estimated NPV (10) jumps to circa US$2 billion".

Not bad for a company with £14.5m market cap!

AnonymousUser858

The thing that raised XEL's profile and brought it to the attention of many investors (including me) was the statement they issued on April 23 in response to budget tax changes

2009 Budget - heavy oil Field Allowance - tax reduction of GBP 160 million

In connection with the 2009 HM Treasury Budget ...the Bentley field in Block 9/3b in the UK North Sea falls
within the scope of the new Field Allowance to support investment in heavy oil projects.

The Field Allowance ...will reduce the corporation tax (supplementary) charge applicable to the Bentley field by GBP160
million, which would increase the net present value of the field as presented in the Base Case in the recent Competent Person's Report by more than US$100 million.

source: - www.stockopedia.com/news/announcement/XEL/090429xel000313.htm

This tax allowance provides a generous dowry which makes acquisition much more attractive. I have to think that the most likely future for XEL is to be taken over by a larger company with the financial and technical resources neede to undertake the necessary development project.

Jimarilo

9th Feb '10

In reply to tournesol (post #2)

XEL announced a placing yesterday, with more detail on www.sedar.com showing a strike price of 68 cents, last Thursdays closing price . Hence the heavy walk down last week

Here is an interesting post last night over on SH

Pescod interviews XEL CEO & CFO

http://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=27908853&l=0&r=0&s=XEL&t=LIST

Jim

thanks for that link - its an excellent interview which provides a number of interesting pointers - I'm mulling........

Jim

is XEL ISA-able?

I thought any stock listed on an overseas exchange could be held in an ISA but my brokers are saying that if the main listing is on AIM then it can't be ISA'd even if there is a secondary listing elsewhere. They went on to say they didn't know which of XEL's two listings was its main listing - so have gone off to check.....

If not, I'll have to put it into my pension.

Yr thoughts welcome

T

In reply to tournesol (post #5)

Hello T,

Yes they can be ISA'd, I just called the office and the two members of staff I spoke to have their shares in a Halifax ISA ;-)

I have been meaning to buy Xcite Energy for sometime and since knowing the reason for last weeks drop I bought in a couple of tranches yesterday. First oil due next year with further development thereafter.

I am hoping this will make up for disappointments with Genesis Petroleum Corp, for sure the risks are much reduced here ;-)

Cheers

In reply to Jimarilo (post #6)

Thanks for that - I'm buying also

Incidentally, hope you aren't blaming me for the debacle re GPC - I felt very disappointed and more than a bit miffed by that fiasco.

In reply to tournesol (post #7)

Absolutely not, I think I was in GPC long before you anyhow, but didn't come out to badly off

All the best with XEL

10th Feb '10

This morning's news rounds out the picture

www.investegate.co.uk/Article.aspx?id=201002100700099213G

www.investegate.co.uk/Article.aspx?id=201002100700099214G

I now see this an asymmetric risk/reward play - low risk vs medium return and within a 6-12 month timescale

Excitiing news yeterday re: Bentley

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MrT

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