Xcite Energy nears start of extended well test

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After months of waiting it looks like Xcite Energy share holders can finally look forward to some of the black stuff from the Rowan Norway rig on the Bentley North Sea field in the next few days (be nice for some blue stuff from the share price too!). The  9/3b-7 well was spudded on the 18 March 2012 and the support vessels have now arrived for the extended well test to commence. The oil tanker, Scott Spirit is on station and the Normand Titan rig has also arrived overnight. An RNS is expected on Monday to announce oil is flowing to Scott Sprit.

At 73p, the shares remain bombed out following the announcement of the 30 million unit placement with Global Resource Funding Partners LLC in mid June. The company is now valued at $300 million with $300 million of funding in place, and with 116 million proven and probable reserves, that makes the Bentley resource valuation $2.5 a barrel – which is low for the North Sea. At close to its 52 week low, how low can this go? Remember £4 in December 2010? I’m sure most shareholders just want Statoil to pounce and finish this misery.

Contratian Investor UK

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