XCITE ENERGY Limited

Got any links please to the discussions?

There's another article here if anyone is interested. This is an exciting stock indeed, and risky.

It seems Excite Energy aren't a alone in seeking the benefits of heavy crude oil production. Interesting article on heavy crude here> Middle East producers see heavy oil in their future.

The Bentley oil Field in the North Sea is Excite's sole asset, so obviously everything depends on them getting the oil out successfully. Drilling is set for late July with testing due to be completed in late August or early September. The economics of the project have also been improved by changes introduced in the April 2009 UK budget when the government announced new tax incentives for heavy oil projects.

Any oil experts here with a view on this? The advances in technology in recent years for heavy crude production seem to be making this look very attractive indeed.

Is this going to make 'Excite Energy' the third biggest player in the North Sea as many are claiming? Any opinions greatly appreciated.

Would a straddle option work on this. Will this be very volatile on the news of the character of the oil.

Raskolnikov wrote: »

It must be a great investment then!

No one has bothered to answer the two most important things that any investors needs to know about an oil stock.

1. What are the proven reserves?
2. What are the rough costs going to be in pulling the stuff out of the ground?

These are not difficult questions to answer and if you're too lazy to find them then stop wasting peoples time, this is an investing forum, not a gambling one.

Oh sweet jesus, would you ever relax! I said it was exciting as in 'Xciting'. It is indeed risky, because they might not be able to get the bloody stuff out of the ground. In the broker's report: they're giving it a 70% chance of success. And yes, I've read the various share price targets depending on the reserves and a successful commercial' extraction/flow rate.

I actually read an article on this company before this thread ever started , so I decided to make a post, and it annoyed you.

1. What are the proven reserves?
2. What are the rough costs going to be in pulling the stuff out of the ground?

These are not difficult questions to answer and if you're too lazy to find them then stop wasting peoples time, this is an investing forum, not a gambling one

Oh dear me. I already know the answer to these questions. The funds are already there (£25m through the share placing) to complete the drilling and flow testing of a pre-development well (late July or early August). Everything boils down to this drilling and the results. I also think some of the partners involved may have different percentage stakes in the project (BP, AMEC and Transocean/ADTI). I have also read various reports on the strong management team at Excite, and all the years of experience they have, and how well they're thought of in the industry. AMEC, the engineering company, are also very highly regarded. BP are only responsible for getting the oil to market, thank god!

I still have no idea what you're getting at here; only to make yourself come across as a real serious investor. LOL.

You might want to read my second post in this thread, where I genuinely sought advice from experts in this field, as I normally don't invest in oil companies. This is called research.

Even from a non-investor's perspective, this is a very exciting project indeed. Even if I don't decide to invest, I'd still be very interested in the outcome.

Raskolnikov wrote: »

Hey now, there no need to get xcite-d; you asked for an opinion, and I gave it. They have no revenues, have never made a profit, and they may not even be successful in their drilling operation.

Well done. Your opinion is invaluable. I already stated this in my post a few days ago (post no.6) when I stated "The Bentley oil Field in the North Sea is Excite's sole asset, so obviously everything depends on them getting the oil out successfully." How is god's name could they have ever made a profit or have any revenues? I then went on to ask other people's opinion on the extraction of heavy oil, advances in technology etc.. I also posted a link to a recent article on this very topic.

And you go on about me wasting people's time. Incredible!

This is starting to move.

Just an update on this stock. The drill rig has been secured, moved to the drill site and drilling has started. Soon they will be testing for flow rates, which if they prove commercial should bring the stock to £3 or £4 depending on flow rates achieved.

The stock is currently at £1.33 (i bought at 64p back around july so im already happy!)

katie21 wrote: »

Yeah, i am very happy too. I bought in in the low 70's and topped up again at 1.12 so happy with the gains made so far. Onwards and upwards for this share I think.

Yeah I bought the bulk of my holding at 75p and topped up a couple of time at around 103p.

Hoping it'll reach 150p+ on the run up to flow rate results so I can top slice as its very risky leaving all in, nice to take some profit and de-risk.

Are ye going to do the same or are ye staying all in?!

Flow rate results of 3500bopd+ and this will be 300p+

Yeah, a slight retrace today on the gains over the last two days (14% Tues and 6% yesterday). Down around 6% today so not bad at all.

Comparing the 70%-80% COS here to the popular Fawkland oilies like Desire Petroleum for instance makes XEL a no-brainer if one had to choose an oil stock to invest in. The next campaign by DES (after the sidetrack on Rachel) of the Dawn/Jacinta prospect has a mere 6% and 8% COS respectively. I think the industry average is around 1/4 COS. DES had a market cap of £500m only a fortnight ago and that's with NO proven oil at all. Quite extraordinary really.

I got in here at 64p after they signed the rig contract, so 100% up atm. Actually it was the easiest 'risk-free' money I ever made (paper profit) as the share price was always going to go up getting closer to the drilling campaign.

We should be seeing results mid to late November as it's a 62 day drilling campaign. It's obvioulsy risker buying at today's price, but positve flow results and a possible increase of recoverable resources (Bentley is a 1 billion barrel field) could see this going to £3-£4 p/s by the end of the year. Poor results would probably see it back to the 40p-50p ranges. Altough, looking at what flow rates Statoil got (3,400 bopd) from the neighbouring/analogous Bressay field, it's makes our prospects look very, very good indeed.

If flow rate is poor and they drop to 40p could i gain it back (131p)?

Is everyone happy taking the risk with the 70pc chance it'll go to 3pounds?

What's the longer term outlook if you had to guess?

Buy what you can afford to lose?

MrK

sweet jesus

Mr Cawley wrote: »

sweet jesus

Yes, a nice RNS to wake up to on a Monday morning. It explains the big buys late on Friday now. It was up over 30% when I logged on first thing this morning and around 22% as I type.

For those interested, the RNS was a drilling update and basically they encountered greater oil volume from the drill. Article from iii.co.uk here explains.

The flow test results due in late November is the biggie though and could send into a few £'s.