I think timeframe was a significant factor in Xcite not doing a farmout deal with Statoil after the EWT. At the last AGM someone asked about discussions with Statoil and RC made a comment that suggested that there would have been a very long wait before production if such a deal had proceeded. My view of his comments were that we'd have been positioned in the queue behind Mariner etc. When RC spoke of the value being in the FDP he could well have been referring to greater interest from the majors in investing in XEL, including potentially by Statoil and a shorter timeframe to production in the event the FDP is approved. Hopefully the partnership arrangements will be in place.
Overman. Have you not read Mark's posts? He's positive on XEL and very informative. My view is balanced, neutral but slightly negative due to timeframes, stalled POO recovery and chart momentum. 30p is under threat.
Please read the posts before commenting. It's a new dawn here, we're all friends.
I see no evidence of traders here, no volume increases, no rumours, no news-flow impetus. It's more like a conventional main market stock in terms of posting and activity. That may not be a bad thing, as it takes some of the noise and hyperbole out of the equation and we can instead focus on areas of value and associated challenges. Why would anyone buy this now then? Maybe a value investor would see a MC of £100m as being a reasonable entry point compared to the £300m and £200m levels pre-farm-down failure and oil price falls. Sometimes factors outside one's control can lead to opportunities that would have once seemed highly unlikely. Having said that, there are clearly major risks ahead given the relatively low oil price, highly convoluted partnership model, existing debt and future borrowing requirements. The questions for new investors are quite simple; are these risks factored into the £100m or has the market overreacted to the farm-down failure and oil price falls? Some may even ask was the MC before these events too low anyway? AIM is black and white, with very little grey... but what it does do is offer a brutal analysis of sentiment. Betting against sentiment is for some extremely counterintuitive, for others it's not so difficult.
i wasn't actually saying that we hadn't had any farmout failures.........i actually said none had been reported officially by an RNS.........therefore everything else is just pure speculation........SPkillers line "It may be that there was significant interest but the BOD decided the offers weren't good enough"......seems about right to me........theres a 1st time for everything :-)
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