Xcite Energy released their quarterly results for the period ending September 2012 which confirmed what Edison said in their recent broker report that farm out discussions and a new competent persons report would not be completed until 2013. After all the talk of an imminent reserves upgrade on the bulletin boards, the hot money looks to be leaving this morning with the shares down 4% or so to 97p.
All on track for those with the patience to wait for further updates next year, but disapointment for those needing immediate news flow to boost the share price big time in the short term this side of Christmas.
The results state:
The Phase 1A programme was a highly successful, extensive and thorough pre-production well test, which has provided substantial quantities of valuable data. The Company’s immediate priority is to continue to analyse this information in order to update the reservoir model and production profiles, which, together with the inclusion of recently acquired new 3D seismic data over the Bentley field and its surrounding prospects (including 27th Round licences), will form part of the updated reserves report (a Competent Person’s Report) and the RBL banks review process, expected early in 2013.
This data and analysis thereof will also be utilised in a data room in due course for the intended farm-out discussions, with the intention of commencing the initial engagement process by the end of the year.
2013 is therefore expected to be an important year for Xcite Energy, with an updated Competent Persons Report, discussions with potential farm-in partners, the re-submission of the updated Field Development Plan to DECC and the initiation of the Phase 1B work programme, the planning for which is well underway. The Company looks forward to updating investors on these important events.
Contrarian Investor UK