Excitiing news yeterday re: Bentley

Tuesday, Jun 23 2009 by
  • 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.


As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. The author may own shares in any companies discussed, all opinions are his/her own & are general/impersonal. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.

Do you like this Post?
2 thumbs up
0 thumbs down
Share this post with friends

Xcite Energy Limited (XEL) is a heavy oil development company focused on the development of discovered resources in the North Sea. The Company operates through the segment, which includes the appraisal and development of oil and gas reserves and the geographical segment in which it operates is the North Sea. The Company holds and operates Bentley field located in Block 9/3b (License P1078) in the United Kingdom North Sea through its subsidiary, Xcite Energy Resources plc (XER). The Bentley field is located on the East Shetland Platform in the United Kingdom Northern North Sea, over eight kilometers southeast of the Bressay Field, approximately 15 kilometers east of the Kraken Field and over 20 kilometers north-northeast of the Bruce Field. The Company also holds and operates blocks 9/4a, 9/8b and 9/9h (License P1979) in the United Kingdom Northern North Sea. more »

Mkt Cap (£m)
P/E (fwd)
Yield (fwd)

  Is Xcite Energy fundamentally strong or weak? Find out More »

9 Posts on this Thread show/hide all

MrT 23rd Jun '09 1 of 9

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!

| Link | Share
tournesol 23rd Jun '09 2 of 9

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.



| Link | Share
Jimarilo 9th Feb '10 3 of 9

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 


| Link | Share
tournesol 9th Feb '10 4 of 9


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

| Link | Share
tournesol 9th Feb '10 5 of 9


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


| Link | Share
Jimarilo 9th Feb '10 6 of 9

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 ;-)


| Link | Share
tournesol 9th Feb '10 7 of 9

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.

| Link | Share
Jimarilo 9th Feb '10 8 of 9

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


| Link | Share
tournesol 10th Feb '10 9 of 9

This morning's news rounds out the picture



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

| Link | Share

What's your view on this thread? Log In to Comment Now

You can track all @StockoChat comments via Twitter

 Are Xcite Energy's fundamentals sound as an investment? Find out More »

Stock Picking Tutorial Centre

Let’s get you setup so you get the most out of our service
Done, Let's add some stocks
Brilliant - You've created a folio! Now let's add some stocks to it.

  • Apple (AAPL)

  • Shell (RDSA)

  • Twitter (TWTR)

  • Volkswagon AG (VOK)

  • McDonalds (MCD)

  • Vodafone (VOD)

  • Barratt Homes (BDEV)

  • Microsoft (MSFT)

  • Tesco (TSCO)
Save and show me my analysis