Valiant Petroleum – Under the radar

Valiant reminds me a lot of Ithaca Energy (IAE). It’s under the radar at the moment but not for much longer.

I remember when IAE was 40p range (June 09) and I was shouting its merits from the roof tops and the sp wasn’t moving one jot.

We had months of flatlining around 35p to 45p ranges and I was scratching my head as to what I had missed in my research. Then the market started to wake up to a few decent rns’s and the old father time factor started to weigh on investors minds as ops became more visible on the horizon. The simple truth is that the markets have changed post Lehman’s 08 disaster. They are less willing to price in success and often side on caution to the tune of actually discounting beyond the basic NAV.

If the company has nothing ‘material’ due such as a drill or reserves upgrade etc etc, then the market doesn’t want to know. Mr market only seems to wake up when we are weeks away from developments rather than months.

I’m an investor that likes to get in early, i’m quite happy to sit through several weeks of flatlining if it means I’ve got my shares ahead of the big news rns. No scrabbling around trying to chase it, just a nice steady build up on the investment plan planted long ago.

Valiant is a £7+ stock based on production alone never mind the ops they have planned for next year. If they have success, we could be talking £10 a share.

At 520p – even Goldie Sachs are admirers…

Goldman Sachs Upgrades Valiant Petroleum To Buy

“Friday 17th Dec 2010, 0956 GMT [Dow Jones] Goldman Sachs upgrades Valiant Petroleum (VPP.LN) to buy from neutral and target to 864p from 809p following recent underperformance and the recent operational update, which highlighted likely exploration activity in ’11.” END.

Latest  Valiant Operational Update Dec 2010

Xcite Gushes – Commercial Flow rates success!

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.