Xcite Energy Share Discussion Threads

[arlington chetwynd talbot] 06/11/2014 09:23

Yes, but we have already been informed that the rig tender process was already ongoing in the interims;

"The Company continues its discussions with additional development partners to complement the Bentley development group, including drilling contractors and services companies as part of its rig tender process and overall well strategy."

[steve73] 06/11/2014 09:22

mcl - MOU's should be OK for FDP - as long as they have proof of funding..

As to the 7 year contract duration - this will be for the initial 2 main phases (or drill centres)... Thereafter, there will certainly be need for workovers and redrill's but that would be subject to further analysis depending on initial well performance, and a suitable contract would be agreed closer to that time.

IMO of course.

[steve73] 06/11/2014 09:17

Thanks Ian - that makes it much clearer.... The chinese translation could have been written by "chinese carla".

My understanding is that CSOL have ordered the rig, and are bidding to drill for XEL with Maersk and Noble as possible alternatives.... so as net said previously, no real need for XEL to comment .....YET.

[mclellan] 06/11/2014 09:17

Wouldn't you have to have more than MOUs signed to go for FDP submission?

[ianio5691] 06/11/2014 09:15

Until a contract for a rig is agreed, it's all just speculation, and there is nothing for them add.
Interesting to see that we are clearly in negotiation for the rig though.
Once this final piece of the jigsaw is in place, we can finally go for FDP submission and provide some clarity on how it will all be funded.

[arlington chetwynd talbot] 06/11/2014 09:08

If COSL do win, and it's a 7 yr contract, then that's not long enough.

Drilling is not a 7yr process.

Unless the plans have changed yet again?

[mclellan] 06/11/2014 09:02

Ianio- it would be nice to hear from the Company.
I suppose they will just wait to announce the winning bidder.

[ianio5691] 06/11/2014 08:56

I have them all on filter Mc.
It's all there in black and white. It would be nice if the Co would make a statement to either confirm or deny.

[mclellan] 06/11/2014 08:54

Thanks, Ianio- the daft shorting MAT on the other thread says we are making it up and that the FCA are interested !!
Perhaps he should ring Upstream!
You have to laugh.

[ianio5691] 06/11/2014 08:51

The Upstream article, for comparison......







UK-listed Xcite Energy is close to signing a memorandum of understanding for drilling services for its Bentley heavy-oil field in the UK North Sea.

Industry sources said signatures could be placed on the preliminary deal within days and that China Oilfield Service Ltd (COSL) is well-placed.

Upstream understands that, if selected, COSL will simultaneously sign a similar preliminary agreement to lease Singapore rig owner TS Offshore’s KFELS N Plus-design jack-up rig being built at Keppel Fels for the possible Bentley work.

The rig, which was ordered in March this year, would be ready for operations in 2017 under a contract that could run for seven years, sources said.

Other bidders Xcite is talking to are understood to be Maersk Drilling and Noble Drilling, said to be offering GustoMSC CJ54 and CJ62-design units respectively.

Another company, Norway’s Ocean Yield, is also understood to have bid a planned E-Class design unit.
An Xcite spokesman declined to comment on the details of the tender, but said: “We have a tender process for the provision of a drilling rig. We have previously said that is the next role in the development group to fulfill, and we are evaluating a number of options.”

Xcite holds a 100% operating stake in Bentley, but is yet to secure funding and is on the hunt for farm-in partners, with the aim of bringing it online in mid-2018.

In the meantime the company has signed a series of MoUs to establish a risk-sharing development group in preparation for delivering a development plant to the UK authorities.

The latest MoU, with Baker Hughes for oilfield services, was announced last week.

The group also consists of Teekay for the project’s floating, storage and offloading vessel and Amec and Aibel for the platform.Xcite has also signed agreements with Statoil and EnQuest to explore sharing a common gas pipeline on their respective Bressay and Kraken fields.

Xcite chief executive Rupert Cole said: “All the MoUs we’ve signed set out the principles on which we are drafting the commercial contracts. So, each one is an important step towards the field development plan.

“The last key part is the drilling rig. And those discussions are also going well.”

Bentley is located in Block 9/3b and contains about 909 million barrels of in-place oil.

[mclellan] 06/11/2014 08:29

carla- we don't know what the state of the finances are yet.
The rig hasn't been built obviously.....just bids in!

[mclellan] 06/11/2014 08:20

There seem to be a few bidders:

COSL or will sign a lease with a drilling platform Xcite
Views: 1253 Source: Upstream Editor: Pang Xiaoyu Time: 2014-11-04
Singapore and London-listed Xcite Energy will sign a memorandum of understanding for the development of heavy oil fields in the North Sea drilling platform leasing Bentley England. Industry sources said the agreement will be signed within a few days, COSL is currently at the company ahead of the competition.
The source said that if COSL can get Xcite lease, the company will simultaneously and Singapore shipowner TS Offshore signed a lease contract to rent the latter being built by Keppel Shipyard KFels N Plus type drilling platform that provides oilfield drilling for Bentley service. This rig will be delivered in 2017, a term of seven years.
Other companies negotiating and Xcite also includes Maersk Drilling and Noble Drilling. Drilling platform provided by these two companies are GustoMsC CJ54 and CJ62 type type jack-up drilling platforms. It is reported that the Norwegian company Ocean Yield also participated in the bidding, the company recommended that the E-Class model Keppel Shipyard's self-elevating drilling platforms.
Xcite has a Bentley 100% of the shares, but the development costs have not yet implemented. The company are looking for investors to buy shares in order to achieve first oil in 2018. Meanwhile, Xcite has also recently signed a number of memoranda of understanding in order to reduce development risk. Last week, Xcite and Baker Hughes signed a memorandum of understanding on oil field services. Bentley at 9 / 3b block, reserves of 9.09 billion barrels.

[arlington chetwynd talbot] 06/11/2014 08:11

Steve,

XEL wouldn't RNS a drill-rig-bidding round surely? The article simply names some bidders. They'll RNS the winner.

[carla1] 06/11/2014 08:04

Lol

ps..steve is the lucas good Guy.... special occasions :-)

[mclellan] 06/11/2014 07:59

Today is of little consequence.
It's what happens in the general process that matters.

[steve73] 06/11/2014 07:57

ok - clear as mud now... but alas, I fear a red-day today since mystic-carla has spoken...!

;-))

[mclellan] 06/11/2014 07:48

Steve- the link for the Chinese article is only back a few posts.

mikepage19 5 Nov'14 - 17:45 - 48815 of 48834 2 0Moderate | Ban

From China Offshore-



Thanks for the USOL link...have replaced the one in the header

[steve73] 06/11/2014 07:45

The USOL article seems to be working - if you search directly, but it does require being registered (my subscription expired a long time ago although some articles are available for a short while without..)

not sure what you google translate link was supposed to provide...?

try this for the USOL...

[carla1] 06/11/2014 07:41

Morning all....

Now it gets interesting....

They have a rig so they have finance...

RBL was cancelled for a reason as NOT REQUIRED :-)

I declare a BLUEY !!!

[steve73] 06/11/2014 07:36

thanks - do you have a link for the chinese one (or have I missed it somewhere along the line - not being as diligent at reading all the posts as I once was..)?

[mclellan] 06/11/2014 07:30

Steve- I did read it at the time it appeared and put it into the header for reference.It now won't open.
I've run that Chinese article through Google translation and it is pretty clear.
It is dated the 4th November whereas the Upstream one was earlier...around the 31st October

[steve73] 06/11/2014 07:23

I suspect that USOL reported the news from the chinese news item (that mike found/created a very poor translation of), but that the USOL were advised to pull their article...

Did you mcl (or anyone else) actually manage to open the link... or take note/copy of it?

[mclellan] 06/11/2014 07:18

Funnily enough, I copied this on to to the header the other day and the link now won't open.

Article relating to the rig MOU deal being close to being signed

[steve73] 06/11/2014 07:14

uptream-online often have "scoop" news from Asia, concerning western cos.. but usually the oil co quickly issues its own RNS to confirm (or ocasionally deny), but XEL are remaining tight lipped on this one..be good to get an official release one way or the other.

[mclellan] 06/11/2014 07:03

Excellent detective work, mikepage.
How on earth did you find that?
'Xcite' and 'Bentley' clearly mentioned.