Xcite Energy (LON:XEL) - RBL and flow test de-risks Bentley
Aug 03rd 2012 - Edison Investment Research today published a report on Xcite Energy (XEL.L, LSE:XEL, LON:XEL) entitled "RBL And Flow Test De-risks Bentley". In summary, the report says:
Xcite has announced first production from its Phase 1A Bentley flow test. However, from an investor perspective the critical news is recent confirmation of a $155m reserve-based lending (RBL) facility that increases our valuation floor to 129p at current prices. This is a major endorsement of Xcite’s Bentley development plan and could act as a springboard for further valuation gains. In the near term we see upside if more non-equity finance or a farm-out can be secured for the Phase 1B core development, while the potential for enhanced oil recovery (EOR) could be even more significant in the long term.
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