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Xcite Energy Share Chat (XEL)



Share Price: 62.75Bid: 62.25Ask: 64.00Change: 0.00 (0.00%)No Movement on Xcite Energy
Spread: 1.75Spread as %: 2.81%Open: 62.75High: 0.00Low: 0.00Yesterday’s Close: 62.75



Share Discussion for Xcite Energy (XEL)


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CHAPPI
Posts: 5,762
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Opinion:No Opinion
Price:67.75
View Thread (7)
RE: HB
12 Jun '14
Statoil can afford to vacillate, indeed they need to with what remains to be done with Bressay, but they have multiple projects on the go, $$ billions in the Bank, whereas XEL basically has one,

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And that's the point RC clearly highlighted at the AGM, we are not waiting around for Statoil to say production will be in the year xxxx! We are cracking on regardless.
highlandsbull
Posts: 958
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Price:67.75
View Thread (7)
RE: HB
12 Jun '14
I think it's all part of the implication as to what's going on behind the scene, it's the way to go, but RC's with the NDA clearly implied he's tee'd off with the time this is taking for problems that are basicallyy eminating from Statoil with their current Bressay licence situation, and their FDP review necessity due to the Bentley data that brought that about in the first place.

So we now eventually, one year late probably because of that have another plan B in place, that Statoil can buy into as and when they can get their Bressay act together. If they happen not to, which I doubt looking at the XEL field equipment, that FSU is huge, then closer to the FDP going in sure someone else will jv by then. Whatever, within a month things should be much clearer imo.
CHAPPI
Posts: 5,762
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Opinion:No Opinion
Price:67.75
View Thread (2)
RE: highlandsbull
12 Jun '14
SK: "DECC are encouraging Statoil/ Shell and ourselves as a prime example where true collaboration can work, you only need to look at a map to see where Bentley is and Bressay is to see that the collaboration in the area and the development of the two fields will be absolutely critical to reducing the costs of both fields"

I don't think it can be laid down any clearer that the chance of a JV of some sort is looking highly probably imo.
highlandsbull
Posts: 958
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Price:67.75
View Thread (7)
RE: HB
12 Jun '14
Sorry, I did not say a Statoil jv is a disaster, all things being equal for both parties, and fair, it's the way to go. What has clearly been bad however is the timing for XEL hence the sp is where it is. Statoil can afford to vacillate, indeed they need to with what remains to be done with Bressay, but they have multiple projects on the go, $$ billions in the Bank, whereas XEL basically has one, with some follow ons as and when they can push Bentley down the road, and a few $$ millions in cash.

What we need is for the BoD to come clean with just what is going on, it's implied, but they're also stymied, as Statoil, until DECC give clearance to Statoil/Shell for the Bressay licence extension. High time this marriage made in heaven is outed, as per Premier/Catcher today.
CHAPPI
Posts: 5,762
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Opinion:No Opinion
Price:67.75
View Thread (2)
highlandsbull
12 Jun '14
Below was a post somebody made a couple of weeks ago on iii and I responded with a bit more depth with my thoughts:

"simple. Our BoD have been sidelined.

If anyone else was interested , it would have all kicked off by now ... ?"

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I feel you are missing the point completely about a Statoil/Shell/ Xcite collaboration (tieback to Bentley?)..................it's in ALL of our interests, but more so Statoil and Shell's given their huge development costs ($7 Billion) compared to ours ($3.6 Billion), to work together.

"Anyone" else interested wouldn't be able to offer the deal that a collaboration of Bentley and Bressay would offer............it's staring you in the face and even more so after the Statoil and Shell "collaboration" confirmation imo.

Options:

1. Xcite have a profitable standalone Bentley Field.

2. Statoil/Shell have a "not so profitable as Bentley" standalone field. (but could make it more profitable with our IP/ knowhow as they have already demonstrated by "reviewing their plans because of our data which was limited in detail by the way, but that will cost them)

3. We join forces and make the two fields even more profitable. (but we hold the key to that door, IP, know-how call it what you will)

OPEX savings alone because of a tieback have been suggested to be possibly slashed by 40- 50% (I can't verify that, but makes sense)........$8-9 per barrel OPEX savings?

See why a $8 -10 per barrel farm in (selling part of our field) makes no sense when we can actually just save that amount by working together with Statoil/ Shell?..........

And that's just OPEX savings!

There's then sharing a new build rig?

Huge development cost savings?

It would be a travesty if these two fields are not developed together given the Wood review and it's recommendations in my opinion.

It ticks the economically feasible box and the environmental side of things also as far as I can see.....

Basically a $10 per barrel offer from an outside party is not anywhere near enough for a slice of Bentley but is the maximum they would offer imo......and is not enough because a JV with Statoil and Shell will SAVE us more than that!!

See the dilemma for an outsider? They couldn't afford to make any offer that would stand up versus a JV with Statoil and Shell......and it appears that Statoil/ Shell have shown their intentions now.
CHAPPI
Posts: 5,762
Observation
Opinion:No Opinion
Price:67.75
P.S....................
12 Jun '14
R.C in response to shareholder when talking about Statoil, says: "do you want to get stuck behind Statoil with maybe a 5 year timframe? Do you want Statoil to be able to tell us what to do?

Nothing in that sounds to me like Statoil are in the driving seat!
CHAPPI
Posts: 5,762
Observation
Opinion:No Opinion
Price:67.75
View Thread (7)
RE: HB
12 Jun '14
In effect a double edged disaster to XEL re timing for pushing on with Bentley. Probably also explains the no show to date of any other jv partner, they'd also be stymied with the current Statoil/Bressay situation if XEL/Statoil were to chose to include them, unless they opted for a complete t/o..

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Again I disagree, a Statoil/ Shell and Bentley joint venture is a hugely attractive proposition for ALL of us.Any external farm in partner coming to the table even offering $8-10 per 2P barrel and it would not be enough but would be all they probably would want to pay versus a J/V of Bentley and Bressay imo.

We could SAVE that per 2P barrel by economies of scale on the OPEX side (it has been suggested 40 - 50% per barrel, but I cant verify that personally) and then there are the obvious reduced CAPEX costs.

Combine this with the Wood Review and it's recommendations, it's a marriage made in heaven.
CHAPPI
Posts: 5,762
Observation
Opinion:No Opinion
Price:67.75
View Thread (7)
RE: HB
12 Jun '14
Don't like to harp on about it, but the attractive to both joint economics point to Statoil being in the driving seat,

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Not according to RC try listening to the AGM. I hour and 48 mins in!

Shareholder: Because they (Statoil) have got the muscle they may get more out of it than us?

R.C: I can assure you that is most certainly not the case, (and listen to the emphasis on assure)

http://www.axisto-live.com/investis/clients/xcite-energy/presentations/534e596390f494e6741f1d49/agm14
highlandsbull
Posts: 958
Observation
Opinion:No Opinion
Price:67.75
View Thread (7)
RE: HB
12 Jun '14
I suspect they do, changes and delays are pointing to plans frustrated in moving forward. Don't like to harp on about it, but the attractive to both joint economics point to Statoil being in the driving seat, XEL silenced by this NDA and the delays re extension of the Bressay licence and the Bressay FDP revision. In effect a double edged disaster to XEL re timing for pushing on with Bentley. Probably also explains the no show to date of any other jv partner, they'd also be stymied with the current Statoil/Bressay situation if XEL/Statoil were to chose to include them, unless they opted for a complete t/o..



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