Well there’s been some terrible ill founded nonsense written about this company over the last few days. And the panic that has set in looks well and truly unmasked as a shorter/deramper plot to gain stock here.
If any one really thinks that a busted export hose is the end of XEL then they need their head examined. Todays latest company epistle is the clearest pointer of this company’s intentions re’ the Bentley drill. You have been told more times than I care to recall that XEL are going into production! Just like you were all told that BMR was being over-cooked and would rise after the unfounded scandalous nonsense cleared.
Here is a snippet from the sector watcher from yesterday
More delays for XEL’s critical testing of the Bentley heavy oilfield in the North Sea, which is likely to contribute further to the nervousness creeping into the share price, off another 2% yesterday, making a 23% fall in the past eleven days. The test was originally meant to be completed by end-November, with the latest delay due to an operational issue with an export hose, and an alternative testing procedure now likely to be implemented. Bentley is effectively the only asset the group has, and explains the reason the share price peaked a couple of weeks ago at 332p (a nine-fold increase on its 2010 low), giving it a market cap of almost $800m. However if the heavy viscous crude fails to flow, and the field is deemed uncommercial, the downside is likely to be severe. Alternatively a strong result could support the argument for the P10 reserves case of 235 million barrels, which could be worth 600p/share.
What has happened to XEL over the last few days has been nothing more than an attack by Market insiders driving down the sp to below broker targets in-order for them to take up positions in the company at significantly lower values IE; An enhanced position bought at lower levels. Some of you have been manipulated by the market out of winning positions and will now have to buy back in at higher prices. The export hose news was almost certainly leaked to the market with its enivitable filtering down through the food chain to the retail punters who ran for cover.
Flow testing began in early December, the crew arrived in early December, the ISO tanks were being prepped in early December, the Betty Knutsen was steaming toward the platform in early December.The on-site iso tanks were being filled in early December. The weather took a turn for the worst then the export hose failed. Nothing more nothing less! A mere minor tech’ problem! If you’re in profit and your nerves are shot then sell it’s simple really.
It is increasingly apparent that short-term day traders trade this stock; day trading is not investing! They have made a packet from your panic!
Stop look and listen before you cross the road here! STOP believing ill-informed bb chat. LOOK at the 600p target on production. LISTEN to what the company are telling you.