Now I read somewhere about Xcite having its hand forced in
respect of their licenses as they had to be active. One thing for sure the
party suggesting it, was ignoring the logical elements and the
market. The acquisition of data was rightly pointed out by "some
mugs" as the start of a potential JV, this indeed seems to be gathering
pace. Xcite's SEDA and cash situation should not be ignored but there is likely
to be more news flow, perhaps September?
This news, removes any doubts about the UKCS Maximising Recovery Review whereby Xcite's
position was allegedly at risk. Yes of course the company would have lost their
rights had they done SWFA but there was a lengthy process before it even got to the stage, with a public notification and various elements before one could even consider 'losing' ones license/operatorship. This is a positive in a bleak winter for XEL, is it the
bottom? Who knows, but it's certainly starting to show signs of progress. I
have for awhile felt XEL were unlikely to develop their assets (in their own name)
and will be taken out when the timing was right.
One will await the broker's push.
Atb Fraser
Fraser- Hi- the Boss is off this week so Im on chauffeur duties in the main plus she is rehearsing for a dance show next week so the house is reverberating with an odd mixture of music.
ReplyDeleteRe XEL- yes- common sense for Bentley and Bressay to be linked- the Statoil cash purchase of XEL did seem the obvious route until their strategic "cut spending down" review a few months ago, but the capex from the Statoil and XEL separate original plans still looks far too high, so a staged development using floating equipment would be a sensible route and Statoil have local North Sea infrastructure that could also be used, albeit the heavy oil will need innovative treatment to get a full price. A farm out seems essential for this asset to be developed, or maybe a combination of the two assets, which have very similar reserves at this stage and a new allocation of %s of this 500m barrel plus acreage between XEL, Statoil and Shell would help focus minds better. I couldn't really see Bentley being taken off XEL for non dev reasons, as there are far worse cases of explorers sitting on finds in UK fields, so this announcement should at least put that outsider to bed. XEL does look cheap but so do PVR and plenty of others (HUR too).
Re MET- no sure if you saw the RNS re their final claim (Ernst and Young) but this adds £425k to the cash pot, with £2.5m from the directors and £4.5m (conservatively after £5.4m was held on 30/6/13) gives us £7.5m all cash and no other assets or plans, despite the note re ongoing listing, which I would see as very unlikely after the tax efficient distribution over the coming months. This tots up to 28.6p, and the AGM was on 23rd July last year. If they stick to the liquidation they have mentioned in the past results statements, there is £2m of value (approx. 5.8p per share) on the table. Im long but I may add if they dip below 20p in the coming weeks on this basis.
Cheers. The Leggie
The E&Y settlement indeed at least covers some of the costs. Taking out Admin Costs and the like I'd er with caution and be petty in changing your guidance to 27p all in.
DeleteThere is a worrying picture in my head of "you in a tutu" pirouetting around the lawn to a 1970's electronic version of Pachelbel Canon in D Major! haha
TC F
Fraser- LMAO- Yes- Some ballet but also One from Chorus Line and Sail from AWOL Nation competing with my normal Radio 6 Music so the noise pollution protestors will be along with their placards again later :-))
DeleteCheers. The Leggie