like your figures guys So: " core area alone holds a conservative estimate of 116 million barrels of proven reserves, valued at $1.5 billion by independent auditors. The core area 'footprint' equates to roughly just 25% of the Bentley field" 116 x 4 equals 464mmbl (conservative) EOR add 30 percent 140mmbl Gives 604mmbl "Encore was taken out for $20 a barrel". Not got a calculator to hand by my basic maths that 12 billion dollar field (32 pound a share), yum yum should sell for 130p a share.

Prever on balance I think a joint venture is more likely and increased RBL may well be available after the significant upgrade. If there was a T/O bid, given the size of the asset , the predator may have to contend with others bidding. All imo of course, but have to say I am looking forward with anticipation as opposed to trepidation. ATB

XEL Yes of course XEL isn't the finished article,but it certainly isn't without hopes.Predators may come or go,but development will continue.

P i did mention that last night in passing that this could be being played down for a potential TO as anythings possible these days, i got slated as i usually do for being negative but such is life. Company X might not have wanted to pay a premium ontop of 200 but they would pay 200?? from 150 who knows somethings not right anyway when reserves upgrades gets you downgraded.

not a bad outcome current mkt cap 300...for 100m barrels - could double on buyout

Re: retrace - just one more... Don't mention the war...Or the gold... HollandNHolland

ugie 116,000,000 x $12 a barrel = $1.4b / 250,000,000 million shares in issue (soonish) and thats 550 a share (and thats just for the 2p of the core alone) or there abouts, and yet we sit at 130, being patient seems to be the key but that is certainly being stretched after the last 2 years here..................

Re: retrace - just one more... Did you get a U in your GCSE mathas rRomeo29. imitch37

Evidence for a JV or T/O Is becoming increasingly compelling imo. Consider the timing of the totally unexpected reserves upgrade on Monday, and the remarks by the CEO later that same day. XEL have consistently appeared to play their cards close to the chest, therefore in my view these words were carefully chosen. We now know the core area alone holds a conservative estimate of 116 million barrels of proven reserves, valued at $1.5 billion by independent auditors. The core area 'footprint' equates to roughly just 25% of the Bentley field. Two adjacent licence areas which XEL own 100% and are still awaiting exploration. Not surprising there has been quite a lot of approaches and interest from other parties in a major North Sea asset..... 20.02.2012 North Sea-focused oil explorer Xcite Energy announced Monday an upgrade to its oil reserves that Chief Executive Officer Richard Smith said confirmed the firm’s Bentley Field is "a major North Sea asset". TRACS International Consultancy, an independent reserves auditor, estimated that oil reserves of the type 1P, 2P and 3P for the core area of Bentley of approximately 99 million, 116 million and 140 million barrels of oil respectively. The net present value of these reserves has been calculated at $1.1 billion, $1.5 billion and $1.9 billion respectively. Morgan Stanley oil analysts, in a note to investors, said that the increase in recoverable reserves to 116 million barrels from 28 million previously "is in line with our expectations but is an important confirmation of the field's potential". The Bentley Field is located on Block 9/3b in the UK zone of the North Sea. Xcite has a 100-percent working interest in the field as well as 100-percent interests in Blocks 9/3c and 9/3d (both adjacent to Bentley). [link] Smith said Xcite had funding plans in place for its initial development plans and could look to partner with another firm to help with its future development. "There has been technical interest and we've had quite a lot of approaches from people who'd like to understand more about what we're seeking to do," he said in an interview. "We are of sufficient size to be interesting to quite a number of organisations from the majors to the midcaps. We're open to talking to people that are in the area where there might be possibilities for a joint development approach which could reduce overall costs," he said, while declining to name any of the parties Xcite has been talking to. Shell and Statoil are present in oil fields just north of Xcite's field, Smith said. [link]

I know i am not peoples favourite poster here! But is there a good direct comparison that can be made between xel and other oilers on aim? any with similar reserves etc? Would be interesting to know if they are just as undervalued or is it just xcite.