Member Info for LEGENDS

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.

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.

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

Again. We require an EGM to vote on the proposed restructure. Still no EGM. Why????? HB. If you remember last summer. I posted a piece regarding one of our service partners being in serious trouble due to the collapse in the POO. The BOD were in a panic for obvious reasons (pre-FEED would have to start again from scratch). You may recall this article from January, which shows the hard work that was going on behind the scene to ensure the Bentley project stayed on track- Xcite looks to team-up with SSP for Bentley •08 January 2016 01:00 GMT •UK-based junior Xcite Energy is understood to be seeking a partnership with US-based floater technology provider Semb¬marine SSP covering the design and engineering of a cylindrical floating storage and offloading unit to develop its wholly- controlled Bentley heavy oil field in the UK North Sea, write Rob Watts, Steve Marshall and Ole Ketil Helgesen. •If it goes ahead, the new partnership would replace an earlier memorandum of understanding between Xcite and Teekay Shipping, reached in 2014, for the supply of a Sevan Marine- designed cylindrical FSO, said industry sources. Due to the total collapse in the price of oil in Q1. It is now looking like the company were let down (walked away from the deal) in Q1 by one of the JV partners that had completed DD. The rumour at that time pointed towards Petronas. I have absolutely no idea what the hell is going on right now. The jungle drums are silent. The way we, the shareholders are being treated is rather sad at the moment. I will wait for the final outcome before passing judgement.

Jup4it. If King Cole is to be believed. He stated at the AGM that the company were in talks with potential partners. They also stated they thought it very unlikely they would have secured the funding in time to pay of the bonds by 30/09/16. From the AGM- farm out. Then need to alternative approach to funding. Continuing dialogue / diligence with potential partners. Had asset funding for MOPU after 12 months (summer 2014) and then oil price fell. That asset funding required bank guarantee. Still have that source of funding. But cannot currently get bank guarantee. Private equity was supposed to be saviour of North Sea. But no. Not suitable for a project like Bentley. Slide showing discussions with government on alternative approach to funding. Not possible until recently. Also talking with Chinese/ Asia companies since late 2014. Number of options in that area. Different way of working with Chinese. Etc. Dev/asset funding requires partner for guarantee of funding supplied by funder. No one done this before so unknown territory. Making progress on this. Someone will Pay for construction and. Xcite will lease. That's the core gist. China/Asia funding and dev/ asset funding two main initiatives at moment. (Not government ) This part stuck out for me- "Slide showing discussions with government on alternative approach to funding. Not possible until recently". Then we have these bold statements from Andy and Greg, right after the OGA become a GovCo- 1st: Andy Samuel- “What we’re looking for now is pace. If people have got valuable licences, we want to see investment. If there’s investment being blocked that should go ahead, we’ll use our powers. Equally, industry has a right to ask us to use those powers, so it works both ways.” 2nd: Greg Clark- “As a Government Company the Oil and Gas Authority will have the powers it needs to be a strong, independent regulator and act with greater speed and flexibility to attract investment, support jobs and ensure that UK oil and gas remains a major player on the world stage.”

You can only vote if an EGM is called.

Jup4it. Mr Samuel made a very subtle hint regarding North Sea key assets and unblocking blocked finance. He also mentioned an area wide plan getting sorted. On the phone so cannot post the article. I posted the article in two parts on 03/10. See you for a beer soon.

needs to be announced before close of play today.

Will we need plane tickets, train tickets or a boat to travel to the EGM?

Blue-Eyes. Correct. A lot of people have been posting that they think the BH'S are oil related. If my sources are correct, then they are a limited liability partnership based in London.

bodog. SK has had nothing to do with the bonds or any other finance arrangement, past, present and future. He is an upstanding OILMAN with no say on financial matters . Not one of those scum accountants....

Wait till you see the RNS on Monday.......BOOOOOOOOOOOOMMM! Or should that be......DOOOOOOOOOO00MMM! HB. I will post the name of the alleged principle bondholder before the EGM. SW3 Dandy Highwayman....

Jup4it. All part of the Westminster master plan.

toxicnerve. It was Bressay FDP approval. Speaking of Bressay. Why have we not heard about an extension yet? Only 3 months left before they stand to lose the extended license. I take it this magical Quad 9 Hub that the OGA have been promoting is now dead in the water. Or is it.....!!!! Andy Samuel- One of the impasses was to do with drilling and two were for asset transfers. A fourth regarding an area plan is still being sorted out. from Statoil- 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. Last Updated: 22-AUG-2016 09:16:22

No wonder they wouldn't give guidance on bondholder dilution. Can you imagine what would have happened if they told the good people attending, that their investment was only going to be worth 1.5% of current value. From AGM- They won't give any guidance on when funding will happen or whether there will be dilution. Will not elaborate on RNS statement. Extrapolating what people are asking and what they BoD are saying there are some serious discrepancies. E.g. Bonds need to be repaid before FDP, yet they say likely dilution and reduction in bond capital. They said if they got funding package that paid off the bonds not an issue. So does existing funding package not cover that if they get guarantor?

Looking at the AGM presentation. One would think that the OGA (Government) have been involved longer than first thought Page 6: Necessity to focus on alternative sources of funding http://www.xcite-energy.com/investors/presentations-and-documents/agm-2016-presentation Again Page 8: Quad 9 is a priority for the OGA to deliver MER UK policy. Looking at the notes provided by Tagnol from the AGM we have this- Had asset funding for MOPU after 12 months (summer 2014) and then oil price fell. That asset funding required bank guarantee. Still have that source of funding. But cannot currently get bank guarantee. Private equity was supposed to be saviour of North Sea. But no. Not suitable for a project like Bentley. Slide showing discussions with government on alternative approach to funding. Not possible until recently. Also talking with Chinese/ Asia companies since late 2014. Number of options in that area. Different way of working with Chinese. Etc. Devasset funding requires partner for guarantee of funding supplied by funder. No one done this before so unknown territory. Making progress on this. Someone will Pay for construction and. Xcite will lease. That's the core gist. China/Asia funding and dev/ asset funding two main initiatives at moment. (Not government ) And we get this from AS last week- Andy Samuel- “What we’re looking for now is pace. If people have got valuable licences, we want to see investment. If there’s investment being blocked that should go ahead, we’ll use our powers. Equally, industry has a right to ask us to use those powers, so it works both ways.”

Greg is the second person (since GovCo 01/10/16) connected with the OGA to mention the i word- 1st: Andy Samuel- “What we’re looking for now is pace. If people have got valuable licences, we want to see investment. If there’s investment being blocked that should go ahead, we’ll use our powers. Equally, industry has a right to ask us to use those powers, so it works both ways.” 2nd: Greg Clark- “As a Government Company the Oil and Gas Authority will have the powers it needs to be a strong, independent regulator and act with greater speed and flexibility to attract investment, support jobs and ensure that UK oil and gas remains a major player on the world stage.” Is it too little too late for our beloved Xcite?????

If only- Andy Samuel, Chief Executive of the OGA, said: “We have been in action since day one, supporting industry to deliver our shared objective of maximising the economic recovery of oil and gas. Industry has made great strides to increase production, efficiency and collaboration, recognising the need to compete for investment in a global market. “Today marks a new chapter for the OGA. All the good work will carry on as we regulate, influence and promote the oil and gas sector, working closely with industry and government. We will use our new powers strategically to help maximise economic recovery and increase collaboration, transparency and pace of delivery. We are committed to helping industry capitalise on the potential 20 billion barrels of oil equivalent (boe) that remain. UK Government Secretary of State for Business, Energy and Industrial Strategy Greg Clark said: “We have a world leading oil and gas industry in the UK that we are extremely proud of, and establishing an independent regulator shows that we are listening to what the industry needs. “As a Government Company the Oil and Gas Authority will have the powers it needs to be a strong, independent regulator and act with greater speed and flexibility to attract investment, support jobs and ensure that UK oil and gas remains a major player on the world stage.”