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11/04/2011

Rupert Cole at Xcite Energy says it’s almost set for first stage production

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Additional Information
Market: AIM, TSX-V
Sector: Energy
EPIC: XEL
Latest Price: 92.75p  (-1.07% Descending)
52-week High: 397.50p
52-week Low: 72.50p
Market Cap: 194.59M
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Xcite Energy
www.xcite-energy.com

The Company, through its wholly owned subsidiary, Xcite Energy Resources Limited (“XER”), is an oil exploration and development company, which is focused on the exploration and development of heavy oil resources in 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.

Full Xcite Energy profile here
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Xcite Energy is a development story not an exploration play, says Arbuthnot

1st Sep 2010, 2:29 pm Arbuthnot sees clear opportunities for Xcite to add value via the drill bit

Xcite Energy (LON:XEL) is wrongly perceived to be an exploration play, whereas in reality it is a development story, according to Arbuthnot Securities oil and gas analyst Dougie Youngson.

In a note entitled “Ready for Action”, Youngson looked ahead to Xcite’s upcoming work programme at the Bentley field, after the North Sea oil development company finalised a £5.8m financing last week.

According to Youngson, a lot of the Bentley field’s risks have already been removed.

“In our view, a positive result from the next well will warrant a re-rating for the company both, in terms of its asset base and its future potential.”

In a recent update, Xcite told investors that it has secured an alterative rig to carry out the 9/3b-R well, and consequently, it has been able to expand the drilling programme to include a ‘slant’ well section.

Youngson highlighted that the new programme should provide “greater certainty” for the horizontal well and subsequent flow test, which is due to spud in September.

“A positive result from the flow test should yield sufficient data to move the asset from contingent resources into reserves and provide the basis of the first-stage production (FSP) programme.”

The analyst said that the drilling programme represents a watershed moment for the company, as a positive result will enable Xcite to move its resources into reserves, and move the Bentley field into development.

“Assuming a positive result, Xcite will determine how to commercialise the field; the hope is that it can bring the field onstream via an early production system in 2011, with full field development planned for in 2014,” Youngson added.

The analyst rates Xcite as a ‘buy’, and pointed to “numerous clear opportunities” for the company to add value “via the drill bit”. Youngson said he awaits the remainder of 2010 with optimism.

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