December 2013 David Sorin from The Chemical EOR Alliance met with representatives from BP, Talisman Sinopec, EnQuest, Taqa, Shell, Total, Chevron, Xcite Energy and Statoil to explain how the extra production and new chemical plants would also create thousands of jobs.
David said: There is a lot of interest. The Department for Energy and Climate Change has shared with us data from a number of fields in the UK which would be good candidates for the technology. Based on the early analysis we have done, there are some good prospects.
BP North Sea boss Trevor Garlick added: Maximising oil recovery needs to be critical on our agendas. We need greater emphasis on reservoir recovery. I would love us to create a bit more urgency and a bit more pace around EOR in the North Sea.
will trigger a bidding war. And potential predators realise that.
I wonder if a major player could be unveiled as a farm in partner before much longer?
As for Statoil, they would have most to gain from joining any farmee, and eventually buying Bentley outright IMO. It might even be discussion have already taken place along these lines. Some may ask if that is going to be the case, why don't Statoil just buy the field themselves as it stands at the moment, with the SP being where it is?
1. The BOD would rebuff any low bid approach, presumably leading to a hostile bid and triggering the poison pill.
2. By putting the MOU's in place XEL have clearly signalled they have the capabilities to go it alone - should they need to. Further deterring any low bid.
3. Other competitors are likely to emerge to buy the field, particularly based on any anticipated low initial price offered by Statoil. Thus driving the price up in a bidding war and perhaps depriving Statoil of the opportunity of acquiring such a strategic asset as Bentley.
4. Statoil have extensively examined the EWT data and evidently liked what they found. They would love a development ready Bentley to be at the centre of their long intended heavy oil production hub in the North Sea. Not least to unlock other opportunities with the new licences they acquired.
Plus both Bentley and Bressay could be developed a lot cheaper due to economy of scale synergies etc. Not forgetting the heavy oil tax concessions of £800 million for each field.
Resulting in Statoil and their partner/s securing around 300 million barrels on a development ready field good to go, with all the service companies in place, and around 600 million barrels from the combined Bentley and Bressay fields. A figure which would increase with EOR techniques, over the 50 years or so the fields would be producing.
And they could easily replicate what Statoil have successfully done in the past by selling 40% of Bentley/Bressay to far east NOC's. Gaining billions in the process, while at the same time retaining around 350 million barrels.
Then again the Chinese might already have a finger in the Bentley pie, thereby cutting out the middle men altogether. They certainly have the financial muscle to do this and are also very keen to gain innovative heavy oil extraction technology...
In the next week I personally think the company is going bankrupt. The Bonds are secured against the asset so if they run out of cash it's a petty serious situation. As for XEL for over 2 years now it has been on the radar of majors for the asset it has and some IP which is becoming seemingly meaningless as the weeks go by but it may have some value for the Bentley reservoir. However my point is if at this price XEL isn't attractive to a t/o offer at this price then something is seriously amiss here. Everyone knows oil will be going back up in price at some stage not even the Saudis can protect market share losing $280 million a day in doing so, so that leaves this company at a ridiculously low valuation and must be picked if off by cash rich Majors soon before the price goes back up.
Can't believe it was less than four weeks that the Chinese rig deal was announced. Just re-reading some articles I came across this independent article which states that "CNOOC now wants to buy up as many energy-related assets as possible to glean intelligence from partners as well as to control the assets".
But a junk bond crisis could become more likely if oil prices stay low for an extended period of time. Once a few companies begin to default, the problem could quickly spread. Another variable is how quickly the U.S. Federal Reserve will raise interest rates, which could significantly affect the attractiveness of the junk bond market.
Local and regional banks could be highly exposed as well, especially if energy loans make up a large share of their lending portfolio. The Wall Street Journal pointed out that banks like Oklahoma-based BOK Financial – with 19 percent of its loan portfolio made up of energy loans – could be the most vulnerable. Moreover, an economic downturn in regions that depend heavily on energy, such as Texas or North Dakota, could see a broader decline in demand for loans of all kinds. That could add to the pain for local banks.
Low oil prices are not just a problem for oil companies. Investment funds, hungry for yield in a low interest rate environment, have poured money into oil and gas. To be sure, we are far from a crisis at this point, but if oil prices don’t rebound, a lot of people are going to lose a lot of money.
I'm no finance expert and ( would appreciate opinions from anyone who is, but personally I'm less worried about it being sorted within six months but that it was sorted on favourable terms. In view of that I'd be happy to wait a further 3-6 months on top of the aforementioned 6 months wait we probably have here (subject to a t/o?). Any thoughts?
I remember when oil was $10-$15 a barrel,yep and the oil companies were making a profit.Then I remember it jumping to $30 a barrel,how the high fives, and the big fat cigars in Texas and Aberdeen were lit.Then it jumped to $110 a barrel. Then take a look at the likes if Shell,BP,Statoil,Exon Mobil,Total to name but a few ,look at their quarterly profits,billions upon billions. Tell me are we really worried about life at the moment.They run governments around the world believe me,they run countries around the world.money,money ,money. Sit back and wait,something will happen somewhere,sometime,and bang,here we go again,Xcite will produce oil,its to big to ignore.
I just hope we have something half sorted for financing the project. The big issue if not is that terms will change and not be as favourable as hoped.
The BOD have had a tough job and seen through many key elements but at the end of the day all pointless if we can't go to the next stage, next 3-6 months is when they will either make or break us (if we get another AGM stating that discussions are taken place they have royally screwed us!!)
Good post hku It puts it in perspective! This situation isn`t going to stay like this for long! If you don`t need the money hold as the worst thing investors can do is sell at the bottom! AIMHO Merry Christmas
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