It feels a long journey from the days in April when Xcite scrapped together a rather quiet placing at 40p.
It caught my eye as I was researching it at the time. I remember thinking that is was cheap but funding was required, and I didn’t expect them to achieve it so quickly.
To my surprise – the market wasn’t moved by the placing, so without further delay I mopped up my quota at 40p and sat back and waited.
8 months on and after a journey that has seen problems with the rig and weather – Xcite delivered what all investors dreamed about – commercial flow rates near 3000bopd.
From today’s RNS…………………………..
21 December 2010
Xcite Energy Limited
Successful Completion of 9/3b-6z Well Flow Test
The Company announces that the flow test of the 9/3b-6z horizontal well on the Bentley field has been successfully completed.
The flow rates achieved demonstrate both the commerciality of the Bentley field and the reservoir properties to be above the upper end of modelled expectations.
Key flow test results were:
– Total flow test of 36 hours including clean-up of 9 hours, with cumulative production to tote tanks of over 2,000 barrels.
– Multi-rate flow tests were conducted, culminating in a final stabilised flow rate of 2,900 stock tank barrels of oil per day.
Richard Smith, Chief Executive Officer of Xcite Energy, commented:
“This is an outstanding outcome for the Xcite team and for the industry contractors to deliver this successful well test on Bentley. This flow test fully demonstrates the commercial potential of the Bentley field and the long-held belief that Xcite has maintained in this major North Sea asset. We now move on to the first stage production planned for 2011 with an excellent platform.” END.
Xmas has come early for Xcite investors and i’m chuffed for everyone that has done well.
2011 will see the company move towards an Early Production System and the cash flow will help offset the capex costs although the SEDA which has proved useful will continue to be used. Current sp 385p.