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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.

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.

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.

Hi paddy1964. Good question. Do not definitely know. Applying logic one would think that if the whole business was moved on as a 'going concern' that any tax breaks would still be available. Imo, and only my guess, is that if you break up and sell piecemeal all tax breaks evaporate. I could be completely wrong, .

Am reposting my 7th October comment on the licenses below; The question of losing the license is very significant. I would have thought that the company would have warned in the RNS that 'enforcement action' would lead to revocation and negligible value left in the company. Just had a couple of minutes searching and found this link; hTTps://www.gov.uk/guidance/oil-and-gas-petroleum-licensing-guidance#change-of-control-of-licensee Here are a couple of extracts; Charges on licences "It is common practice for banks lending money to companies to demand a charge on the company’s assets as a form of collateral. Creation of a charge on a Petroleum Act licence is controlled in accordance with the model clauses attached to each licence." and "If a borrower defaults on the loan, the lender may wish to seek enforcement of the charge to have a licence interest transferred to itself (possibly after appointing a receiver). This would constitute a licence assignment, which is controlled in its own right under the model clauses. Faced with a request for consent to such an assignment, the OGA would take into account all relevant factors, including the expectations of the lender. However, the Secretary of State must exercise their discretion in each specific case, and this cannot be fettered by earlier promises to take, or not to take, a particular course of action. The OGA will also not make such promises."

The only significant 'value' left in XEL is the licenses. Long term investors have obviously believed that BENTLEY has significant value. My wild stab with the £65m figure is what, imo all licenses and other tangible assets could realize in , effectively, a fire-sale. This , imo, likely to be a transfer of the whole business to Statoil. I very much doubt that the BH's made such a low (1.5%) equity proposal if they were not absolutely sure that, in the case of a 'no' ; they would still be able to realize a cash value from the licenses.

As for the licenses being taken away I think there is an area of disagreement as to what happens if administrators are called in. I do not believe the licenses will be instantly revoked. The first resolution administrators will attempt is to arrange a sale of XEL as a going concern. If all else fails assets are liquidated. I think Statoil will acquire the whole business for a song together with the licenses.

The bondholders will receive funds from the disposal of XEL's assets by the liquidator. Whether that approaches the totality of the $149m debt is the question. I doubt they will get all back. My wild stab in the dark is £65m. Nothing will be left for shareholders imo. The only 'comfort' in the liquidation scenario is that the directors shares will become worthless along with yours

"will vote no, in whoch case they will get nothing" The bondholders are at the top of the creditors table . They are NOT the ones at risk of losing everything. Shareholders are at the bottom of the tree and THEY are the ones who are most likely to lose every penny if you call BH's bluff by voting 'no' and the company goes into administration. The gamble is ; will they blink and agree to new terms? Its a high risk strategy but one thing is for certain; whatever value XEL has WILL largely , and eventually, go to those Bondholders.

Nothing like publishing reliable, credible and up to date information. You have to laugh . "Published On: Wed, Oct 19th, 2016 Analysts Price Targets | By Brian Radcliffe" "Most recent broker ratings" 02/02/2016 – Xcite Energy Ltd. (CDI) had its “Buy” rating reiterated by analysts at Liberum Capital. They now have a GBP 42.00p price target on the stock. hTTp://newsden.net/analysts-price-targets/analysts-consensus-for-xcite-energy-ltd-cdi-lonxel/70984

Just twigged that this line from my earlier post does not read well; "So there is the decision; vote 'no' and call their bluff and maybe lose everything or vote yes and see a market value of 1.612 p per share." Terrible prose ; should read more like " So there is the decision vote 'no' to 1.5% and call their bluff and maybe lose everything or, maybe force them to issue less shares & give 5% to see a market value of 1.612p per share." If one votes "yes" to the current share issue plan with 1.5% for equity holders each share would have a market value of around 0.5p post dilution. E minus for my prose today.

Hi toxicnerve. I sympathise with the sentiment. Trouble is , I doubt the BH's would accept just 20%. We have to return to the companies rns which clearly indicated they believed the companies value is less than £120m I doubt the BH's would settle for under £24 million lol.

Its all swings and roundabouts. Some will point out that one could keep the existing plan for the number of shares to be created and just give extra free shares to current holders and less to the BH's. That would mean that the current issued shares would DROP in value to match the larger share pool, post dilution. Just seems like 5% is not enough.

I am trying to get my head around what is to gain from voting "no" I fully understand that 1.5% equity is awful. 5% sounds great. The cake is one size no matter what percent each party has. Lets assume that XEL's true value is £100m (easy number to work with) very possible if the companies rns is to be believed. In the 1.5% ; equity holders have £1.5 million worth. In the 5% case ; equity holders have £5 million worth. over 3 times the value, the remainder goes to the BH's. Trouble is if the number of new shares created remains the same ; the post dilution price of each share remains the same. The only way to cause an increase in the price of the shares post dilution is to decrease the number of new shares created. That is relatively easy to calculate. If you want the existing 310million shares to equal 5% of the new equity the its size is 20 times 310 equals 6.2 Billion shares. Current equity holders will hold 320m whilst bondholders now 'only' hold 5.88 billion. XEL has still the theoretical value of £100m but now the money is spread a little thicker. Each new share then is 1.612 p based on market value. So there is the decision; vote 'no' and call their bluff and maybe lose everything or vote yes and see a market value of 1.612 p per share. That is less than the share is now trading at, and all for a risk of losing every penny Five per cent makes sod all difference in reality. Has to be higher. Of course you may disagree with the £100 m value. Have a play with numbers yourselves.

For those that can not read the Share prophets article , here is the last line; "This makes the shares in Xcite a nailed on sell down to 1p with a target of half of that." I think he is generous

Xcite Energy PLC: Still more than twice Overvalued at 1.5p http://www.share prophets.com/views/24533/xcite-energy-plc-still-more-than-twice-overvalued-at-15p

Now the GKP 22,943 million shares are in play we see that the market presently values them at £271 million. I think the sp has a bit more downside there. Late Friday some optimistic souls were paying prices for XEL shares that suggests a post dilution market valuation of £320 million. What planet are they on? Get real. XEL is not producing .No-one wants the asset. Gigantic capex required. GKP IS producing tens of thousands of barrels of better quality oil from a huge field with very much cheaper drill costs. What research have these recent XEL share buyers undertaken..? I seriously doubt some are even aware of the impending dilution.

Hi jonjo, We previously had a discussion regarding the bondholders security. This link with the extract confirms the situation; hTTp://www.offshoreenergytoday.com/xcite-energy-raises-cash-to-fund-bentley-development/ Extract; "The Bonds are secured over the assets of XER, including its interest in the Bentley field, as well as through the provision of a guarantee from the Company. As part of the issuance of the Bonds, XER will cancel its existing reserves based lending facility (“RBL”) which was based on the Bentley field development plan in place prior to the pre-production well test in 2012"

Afternoon highlandsbull. One things for sure; XEL can not afford a rig at a hundredth of the price let alone work it. I have begun to doubt whether there was ever any huge interest in possibly taking over operator-ship of BENTLEY. Talk of a 'full dance-card' does not fit well with what we know did NOT happen. Oil over $100 per barrel yet no deal was concluded. Was it Greed or was it unattractive even at $100. Tend to suspect greed. Management should fess up and tell equity holders if there was EVER a tentative number passed to them. With a capex of over $3.5 billion USD that dance card, in reality , if true, was a very short list. Had to have big players on it. Perhaps management when talking of a full dance card were referring to innumerable business ready to sell their services to XEL? It appears XEL were doomed as soon as they signed up to those secured bonds.