Xcite Energy Share Discussion Threads

[mikepage19] 15/11/2014 21:05

If you look at page 10, you can clearly see the future gas import pipeline.


The reason I mention this, look at the date- April 2013.
Now 18 months later we get this from the company-

A joint XER, Statoil and EnQuest team will work together to analyse the current available information and develop a number of proposals to assess the potential benefits of installing a shared gas import pipeline in conjunction with the development of the Kraken, Bentley and Bressay fields.



So anyone who thinks the company have been sitting doing SFA, think again.
Something massive is going down!!!!

[mikepage19] 15/11/2014 20:52

runnerpete22, if you read between the lines-

Following a high-level concept screening, Statoil has identified a revised way forward towards a concept selection in 2015 and a final investment decision in 2016.

So concept- develop the two Bs together, massive cost saving and a truly Monster Heavy Oilfield.

[mikepage19] 15/11/2014 20:34

I would like to take this opportunity to give the BOD and all employees of Xcite Energy, a massive thankyou for your fantastic efforts and contribution over the past years, in helping bring the BENTLEY MONSTER to life.

All will be revealed very shortly!!!!!!

[mikepage19] 15/11/2014 20:27

runnerpete22 15 Nov'14 - 18:27 - 49415 of 49416

Great post mate.

jcd1972 15 Nov'14 - 19:34 - 49416 of 49416

Another good post.

[jcd1972] 15/11/2014 19:34

Runnerpete - one would think a share swap would be the best bet. Below is an article on the Acquisitions Daily website recently. As the article states the Norwegian government is content to reduce its stake. It would also tally with RC's comment that the value is in the FDP rather than having to wait until production.

'Like Alexander the Great at the start of his conquest of Asia, Statoil’s new CEO is to be presented with a dilemma: in order to maintain a dividend yield of 4.8% do you cut future dividends or focus on costs, capital expenditure and pursue asset disposals? The answer won’t come as easy as cutting the knot with a sword.

According to a research note from Nordea on October 24: “We do not believe Statoil will cut its dividends (as questioned in the market), but rather raise debt, sell assets, reduce its capex commitments and cut costs. This should gradually improve free cash flow, but we believe it is impossible for Statoil to improve it so fast that it covers the dividend in 2016 with organic free cash flow.”

That view may well be right as regular dividend yield is what investors are looking for at a time of historically low interest rates. Hence the company is unlikely to opt for a solution that would make the stock a lot less popular with its investor base.

A reduction in the capex or selling assets is unlikely to provide a long term solution; neither is costly exploration. Nordea Equity Research notes that Statoil’s exploration has been unsuccessful recently.

Securing reserves that could be exploited at low production costs per barrel might be the way forward. That can come through acquisitions and the currently depressed oil price and oil companies’ share prices must be giving Statoil and its new CEO a number of interesting options.

Take the North Sea, for example: Enquest, Ithaca Energy (already producers) and Xcite Energy (with proven reserves and at pre-production stage) with whom Statoil is already in some form of collaboration over the Bressay and Bentley fields, could provide good fits to such strategy and they could go some way to filling its cash flow and reserves gaps.

The share prices for those companies – already battered by the uncertainty preceding the Scottish referendum – were then even further hit by falling oil prices and now stand to be 47% (Enquest), 46% (Ithaca Energy) and 39% (Xcite Energy) lower than at the end of June this year. Enquest, in particular, benefits from strong cash flow of over US$500m p.a. (US$318m in the first half of 2014) and 2P reserves of over 200m barrels of oil equivalent.

Although Enquest’s enterprise value, at just under US$2.5bn, appears only marginally discounted compared to the five times multiple of its estimated debt-adjusted cash flow from operations – a benchmark around which some of its more sizeable peers are currently valued – it could provide still a useful boost to Statoil’s cashflow.

Xcite Energy, whose current market valuation including debt stands at US$1.4 per 2P barrel and has 2P reserves of over 250m, is expected to commence production in 2018 and could also be seen as a compelling takeover target.

After all, it was only a few months ago that the Norwegian government indicated that it would be happy to reduce its 67% stake in Statoil. A takeover or merger in the form of a share swap would provide a politically acceptable way forward as an alternative to a cash take-over.

The jury is out for Statoil. It remains to be seen whether the new CEO and his crew will be as decisive as Alexander the Great'.

[runnerpete22] 15/11/2014 18:27

Currently abroad, but had a very interesting “discussion221; with a couple of Norwegian chaps last night who work in the oil industry in Norway, but wouldnt state exactly who with or where. Both very familiar with what was going on with Statoil & Co and the Bentley field, which they agree is huge. All the pieces of the jigsaw are slowly coming together and RC is playing a blinder. They claim we have no need to worry about finance etc, Statoil, who have a first option/refusal re T/O, will be taking that on after they have taken us over once the BOD have completed all the paperwork etc with the relevant authorities in the UK and further info re upcoming budget announcements. Not known at this stage whether it will be a cash or cash and share offer, or details/agreements regarding the XEL EOR technology. Those who believe they know what is panning out and what the field is worth are regularly acquiring 20k, 30k + blocks of shares on any nice dips and will continue to do so even when the price is at several multiples of todays price. From the Statoil point of view though...... the downside is a raid from the Chinese who could well offer silly money.

Presume that is why the board and Mike Page are confident in claiming all shareholders will see full value in the very near future.

AIMHO, DYOR etc etc.

[irnbru2] 15/11/2014 13:20

With the oil price at $70-80, this development is nowhere.

Come back in 3-4 years, when it is back North of $100.

[irnbru2] 15/11/2014 12:50

It was a sell.

[pensioner2] 15/11/2014 12:04

This might put a few cats amongst the pigeons. A hostile t/o on the way:



Edit. I should have said for B-H not XEL.
P.S. Another big buy after the bell.

[leedskier] 15/11/2014 11:29

When opened click to expand ....

[mikepage19] 14/11/2014 15:30

NEW YORK--Oil prices bounced higher Friday as traders who had bet on lower prices closed out positions after futures fell sharply to four-year lows.

Light, sweet oil for December delivery recently rose 94 cents, or 1.3%, to $75.15 a barrel on the New York Mercantile Exchange.

Brent rose $1.92, or 2.5%, to $79.41 a barrel on ICE Futures Europe.

The oil market is "rallying into the weekend as market participants try to catch a falling knife," said Matt Smith, commodity analyst at Schneider Electric SA, an energy-consulting firm.

The eurozone's gross domestic product grew 0.2% in the third quarter from the second, the European Union's statistics office said Friday, slightly better than forecasters had expected but still not indicative of strong growth.

A weak supply-demand outlook continued to weigh on the market. In a monthly report released Friday, the International Energy Agency called for demand to fall steeply in early 2015 and said "production growth shows few signs of abating."

Oil prices have dropped about 30% since mid-June as new additions to supply have surpassed growth in demand. Market watchers are increasingly skeptical that the Organization of the Petroleum Exporting Countries will act to cut production at its Nov. 27 meeting to reduce the global glut of oil.

"Economic development no longer spurs oil demand growth as it once did, especially in the absence of wage gains," the IEA said. "A return to previous price highs may not be a close prospect."

Still, the report maintained its estimates for global demand in 2014 and 2015, which some analysts pointed to as a sign that the market is stabilizing. The agency has sharply cut its demand estimates in recent months, and prices have fallen in response each time.

However, demand typically rises in the winter, as consumers use oil products to heat their homes and transport goods around the country during the holiday-shopping season.

Meanwhile, Libya's largest oil field shut down after a rival armed group shut its pipeline to an export terminal, a top Libyan oil official said Thursday. The field can produce 340,000 barrels of oil a day.

December reformulated gasoline blendstock, or RBOB, recently rose 3.54 cents, or 1.8%, to $2.0370 a gallon.

December diesel gained 4.45 cents, or 1.9%, to $2.4066 a gallon.

[mclellan] 14/11/2014 14:18

Thanks, mikepage
I guess we will hear, in time

[mikepage19] 14/11/2014 14:17

mclellan 14 Nov'14 - 13:34 - 49405 of 49406

Nothing would change but the name probably.

[mclellan] 14/11/2014 13:42

Slightly O/T

[mclellan] 14/11/2014 13:34

Interesting development, mikepage
What would happen to the XEL MOU with BH?

[mclellan] 14/11/2014 13:10

Mega quiet
C'mon XEL, sign the MOU, please.

[irnbru2] 14/11/2014 10:13

Not sure what you mean mate.

Ok, got it.

The debate here, is not quite to that standard.

[arlington chetwynd talbot] 14/11/2014 10:00

Wilberforce and Huxley.

[carla1] 14/11/2014 08:54

THE Buying has started here... think XEL will be good Today :-)


All Aboard

[mclellan] 14/11/2014 08:26

It was just an idle question, really:-)

[carla1] 14/11/2014 08:10

Done well lately mc...it was GKP if it had not opened up 10%..

QPP if you can watch it....its all over the place

[mclellan] 14/11/2014 08:02

Lol....what's your tip for today?