X

Get our occasional Market Report emails

sent straight to your inbox

There’s no charge for this.

Home / Xcite Energy Shares

Xcite Energy Shares

Xcite Energy Resources Limited (XER) was devoted to the exploration and development of oil production in the North Sea. XER were awarded the licence to operate a large field in the North Sea, to the east of the Shetland Isles, in 2003. The area incorporates the Bentley oil field. Xcite Energy shares were subsequently listed on the London Stock Exchange in November 2007. In 2008, XER successfully drilled and tested in the Bentley field, which was found to produce high grade aromatic and naphthenic oil.

Naphthenic oils have different solvent properties to paraffinic oils. They operate at a lower temperature and have fewer problems with sludge build-up. They are suitable for use in coolants, solvents, lubricants and cutting fluids. Naphthenic oil also has the potential to produce high grade needle-coke. Needle-coke is particularly valuable as it can be used in the production of electrodes for the steel and aluminium industry; the electrodes needing to be replaced frequently.

Extracting this type of ‘heavy’ oil is more difficult than the ‘light’ oil usually found in the North Sea. XER have proved to possess the technology, which other oil companies may not have, required to extract the heavy oil successfully.

In 2010, flow tests on the Bentley oil field established a flow rate of 2,900 barrels of oil per day causing Xcite Energy shares to sky rocket; some investors doubled their money several times over.

Xcite Energy de-listed from the London Stock Exchange and entered liquidation in 2016. Despite initial exploration promise, the demise was due to financial distress arising from excessive debt. Bondholders called in liquidators to recover assets; ultimately, the company did not have the revenue to service debts.

 

 

 

img
Latest Trading Opportunities

Week in Advance: Monday 5th - Friday 9th December 2022

View Thursday 1 December 2022

Upcoming UK100/250 Dividend List

View Thursday 1 December 2022

Week in Advance: Monday 28th November - Friday 2nd December 2022

View Thursday 24 November 2022

Upcoming UK100/250 Dividend List

View Thursday 24 November 2022

Week in Advance: Monday 21st - Friday 25th November 2022

View Thursday 17 November 2022

Get our Market Report emails sent straight to your inbox

Don’t miss out on regular trading opportunities!

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
.