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"Cyan,why are you here?" "149 post for last 30 days. He/she not a share holder and so much of time here." I like to have reasoned discourses on XEL. Why are you posting? Got any of your own thoughts, research or experience to share.?
149 post for last 30 days. He/she not a share holder and so much of time here.
Notso. The platfom and the fpso were ordered in tsndem with Mariner. Since then we know the Bentley cost plan is half that of mariner, there's a better and cheaper way to do things apart fron the fact costs have cratered so no surprise sto canned what they had taken options on four years ago.
Cyan,why are you here?
not administration
I think my song would be " If I were a rich man ......" Might see Rupert busking soon; singing " buddy, can you spare a dime...."
cyan2. Totally agree. Bressay is years and years away from production; if ever.......
Again. There has been no notification of an EGM. Therefore we cannot vote.... cyan2. You post: The big reservation I have after Statoils BRESSAY announcements , is that the value may be much less than my guess. The big difference between Bentley value and Bressay is this- Bentley- ·Mean PIIP for the Bentley field of 885 MMstb. ·1P, 2P and 3P heavy oil reserves for the Bentley field of 236 MMstb, 267 MMstb and 298 MMstb, respectively, based on an initial 35 year production period. .1P, 2P and 3P natural gas reserves for the Bentley field of 23 bcf, 36 bcf and 49 bcf, respectively.(1) ·NPV10 (after tax) value of reserves for the Bentley field of approximately $2.1 billion, $2.5 billion and $2.9 billion on a 1P, 2P and 3P basis, respectively. Bressay- Zero information. Yes I know. If we don't pay the ferry man, we cannot cross to the other side. I'm sure there's a song in there somewhere.
Hi again LEGENDS, Shell have gone right off the boil as regards this heavy oil it seems. The BRESSAY license is up in December so not long to wait. Almost certain they will obtain a renewal. If they were to drop the license , that would be a BIG shock. On ice, or paused; whatever words one uses , BRESSAY is not going to be developed soon, imo The rig cancellation is the most significant recent event of significance in respect of BRESSAY, imo hTTp://www.offshoreenergytoday.com/statoil-drops-bressay-platform-order-at-daewoo/ published 26th July 2016
Evening cyan2. This has been discussed here many times prior to your arrival. Bressay was going to be a carbon copy of the Mariner concept. They then purchased the well data- http://www.xcite-energy.com/investors/regulatory-news/rns-news/11586876 They then decided to completely change the Bressay Pre-FEED- https://www.2b1stconsulting.com/xcite-bentley-to-inspire-statoil-bressay-project-in-uk-north-sea/ They then decided to delay the final investment decision untill early 2016- https://www.energyvoice.com/oilandgas/89457/statoil-dusts-off-slimmer-simpler-bressay/ http://www.upstreamonline.com/hardcopy/news/1410279/statoil-working-on-slimmed-down-bressay-solution They then decided to pause the concept in 2016- https://itportal.decc.gov.uk/eng/fox/path/PATH_REPORTS/current-projects What I'm getting at is. They changed their plan to use the Daewoo platform on Bressay a long, long time ago. They even delayed the Mariner Topside from Daewoo- http://www.offshoreenergytoday.com/statoil-reschedules-mariner-start-up-due-to-topside-construction-delay/ They will have to make a final decision on Bressay very soon. Even the Mariner East concept has been delayed due to a so called area-wide plan- Project Summary The Mariner East field is located in block 9/11b. An Environmental Statement for the combined Mariner and Mariner East developments was submitted to DECC in July 2012 and was cleared by DECC in February 2013. At that time the Mariner East development proposal was a four well sub-sea template tied back to the Mariner PDQ platform. This concept is currently being reconsidered as part of an area-wide plan.
Good evening Blue-Eyes, What-ever way you look at it ; the equity holders are, imo, going to suffer much more pain. If you recall the Malcy interview where he was asked if BENTLEY had a future; he suggested hesitatingly,yes if it was practically given away to Statoil. I made a wild stab of a guess that the company might generate a £65m offer which equates to about 0.25p per share post dilution. The big reservation I have after Statoils BRESSAY announcements , is that the value may be much less than my guess. Share trades today suggest some buyers prices paid equates to a market value of over £320m , post dilution. Imo, that's completely nuts. I agree, equity is pretty much worthless now.
I'm sure it IS better for the BH's but what is leaves shareholders is pretty much worthless. It potentially allows them to spin the shares back out into the market and the BoD to repair their position with a share consolidation and issue of options down the line This to me is akin to the Spanish land grab but with the added insult of rather than seeing the property razed to the ground you get to walk past it on a daily basis knowing that the local mayor who oversaw the removal of it from your ownership bought it for a pittance and is very much enjoying living in it and boasting to his friends about his luxurious lifestyle. The point that some people fail to realise is that having been left with a pittance in terms of what they invested a fair proportion of shareholders would rather lose that pittance altogether rather than see the company carry on with the present management in place drawing the salaries they do whilst talking about "enhancing shareholder value". With their own shares forever worth only pennies there just is no point in voting anything other than No - no matter what the end result is. Who knows is might go the other way It reminds me of a good old saying in that you might as well be shot as a fox for the whole coop rather than one chicken
feeling of the Private Investors in Xcite and the reality of failing to agree a mutually beneficial way forward. We represent a significant number of individuals with a shareholding of many millions. We look forward to working with you and agreeing a successful outcome for both of us and other interested stakeholders. Yours faithfully 296 Concerned Shareholders Please respond to this email address
Dear Sirs i refer you to the attached petition, started on Monday 17th October 2016 and being in operation for 48 hours, has now reached 296 signatures at 3.25 pm on Wednesday 19th October 2016. http://www.ipetitions.com/petition/xcite The contents of the petition are self explanatory and a pdf copy can be provided. This shows the Private Shareholders absolute rejection of the proposals contained within your RNS of the 27th September 2016. With a separate totalling and register of Private Investors holdings, we are now confident that we have sufficient shareholder support to vote down your proposals. The strength of feeling is such that this will apply to any proposed resolution which leaves the Private Shareholders with minimal residual equity. In an attempt to prevent the calling of an EGM to vote on any such resolution, we propose that a meeting is held between 2 or 3 substantial shareholders, with a financial background, to meet and discuss a more proportionate solution for the way forward. There would be no guarantee that said meeting would provide a solution, but we think it prudent that this option should be given serious consideration. I would not personally be involved in said negotiations, but am willing to provide the contact for the necessary people to attend and discuss matters on behalf of, and with the consent of, our Group. The following paragraph is specifically for Pareto Securities and your Clients. It has become absolutely clear to our Group, that the current Board of Directors no longer have the support or the confidence of the Private Investors of Xcite. The attached petition bears witness to that. We have therefore taken the unusual step of contacting you directly, with a view to taking the Company forward in a way that is mutually beneficial to both your Clients and the Private Shareholders. Please accept this request in that spirit. The consequences of not agreeing an acceptable way forward are dire. As noted, the Private Shareholders Group will vote down any proposal which leaves them with minimal residual equity. We are now absolutely confident of that. The Company have stated in their RNS of 27th September, that such an action would result in "enforcement action" from you/ your Clients. In all of these discussions we are mindful of the OGA in the UK and the Department of Energy Secretary of State. If Xcite cannot prove that it has a viable financial future, the Bentley Licence can be revoked. If Xcite do not hold the Licence, Xcite Energy is relatively worthless, meaning that the Private Investors lose everything (pretty much the position we face with the current proposals), also the Bondholders would be in the same position losing $135 million plus. There would be nothing to salvage from Receivership or Liquidation. These are statements of fact. We ask you to review the foregoing, the strength of feeling of
http://www.offshoreenergytoday.com/statoil-puts-bressay-field-development-on-ice/
Good evening LEGENDS hTTp://www.offshoreenergytoday.com/statoil-drops-bressay-platform-order-at-daewoo/ published 26th July 2016 Reads like they abandoned BRESSAY development to me. Its on ice; could be years before action imo.
paddy1964. Ask yourself this question. Why have Statoil/Shell yet to announce a second Bressay license extension? After all, they only have two months left. Yes. Shell have publicly stated they plan to offload their stake in Bressay. But Statoil have made no noise since Q1 regarding their intentions for Bressay. As you rightly pointed out. So much for the OGAs wonderful Quad 9 heavy oil hub.
cyan2. You post- IMO,Statoil are not in any hurry to acquire BENTLEY with is viscus heavy oil. They have just abandoned development of BRESSAY They have not just abandoned the Bressay development. They paused the concept development in Q1. About the same time the Bentley JV partner backed away. A MASSIVE DIFFERENCE!!!! Project Summary In early 2016 the Bressay licence group (Statoil 81.625%, Shell 18.375%) decided to pause the concept selection process for the Bressay field. Last Updated: 22-AUG-2016 09:15:59 https://itportal.decc.gov.uk/eng/fox/path/PATH_REPORTS/current-projects
I'm sure Statoil would love to get their hands on that 450 million tax loss along with all the other tax incentives that XER/XEL have signed off and ready to go. That is one reason why if they are interested at all to make a move now. I'd love to know what the OGA have planned for their wonderful Quad 9 heavy oil hub if like you say no one seems interested .Very embarrassing for Andy Samuel.
IMO,Statoil are not in any hurry to acquire BENTLEY with is viscus heavy oil. They have just abandoned development of BRESSAY They appear to be the only credible company that MAY offer something remotely acceptable. They hold all the cards and can see the desperation in XEL. IF I were them and a ruthless businessman; I would let whoever is in charge to eventually come crawling to me virtually begging to be taken over. That sounded like a scenario Malcy was expecting.
It's hard to see shareholders getting anything worthwhile whichever way it goes. I am finding the silence from the BOD deafening. You never know Cole could perform a miracle and announce a deal with Statoil offering the minimum they can get away with based on the last 12mths shareprice.!
Its a high risk gamble paddy1964. As you may have read in my re-post of my 7th October research; those BH's clearly WILL get the license on BENTLEY in any case. Logically, looking back, they would never have given the clowns ; sorry management ,$149m without a certain stranglehold on the asset. My earlier calculation suggests that even if equity holders got new terms and 5%; the post dilution share price will be in the same ball park as where it sits now. If current offer is approved I think the SP will be around 0.5p based on around £100m market value.
Totally agree Cyan2. Liquidation/Admin really is mutually assured destruction for the BH's and shareholders. But with shareholders having so little to lose with 1.5% or 0% options, its up to the BH's to improve the deal. Losing the tax breaks on 450m expenditure would be madness.
Imo what prompted the BH's to make available 'up to' $10million was that a sale of XEL as a whole could yield more return rather than the administration/liquidation route. Going the latter way incurs ridiculous fees and those guys do not have much incentive to work very hard and fast. And, most importantly, administration means almost certain wipe-out of what little value current shares have. Moving XEL on without them guarantees any new buyer has all those historic tax breaks. They have some value.
My experience of these situations is limited but I had a dismal experiece with TRAP Oil which was brought to its knees by the collapse in POO. A tiny company called Jersey Oil and gas took over the remains . TRAP did not go into administration. Perversely, apart from some interesting licenses TRAP had a great attraction; £16 million of tax losses that JOG can sit on and take advantage of later. JOG is actually performing something of a miracle getting a Statoil farmin as i have previously mentioned.