The third straight day of gains looks to be on the cards, with Xcite Energy currently up 8p at 397p to buy. A few more pence and it will be the 52 week high (though it hit 425p intra day on the flow test results).
Looking at the timing of RNS releases, the company does not necessarily release them at 7am so news could be anytime and lets not forget the deadline for the signing of the rig contract is the 15th.
Position in significant profit but not even thinking of selling one.
Monday, January 10, 2011
Bowleven looks to be selling on news but opportunity beckons
After this morning's RNS which to me looks positive, although not "transformational", the Bowleven share price initially spiked up to 415p but profit taking has swiftly taken it down to its current 381p, down nearly 4% on the day. A case of "sell on the news". But I am taking this opportunity to top up my position since I believe there may be further good news to come with the sidetrack well. Current market cap is around £820 million, $1.2 billion, which implies that each barrel is valued at around $5 with potential upside. With crude selling for over $90 a barrel, looks a good share to tuck away for a few months.
Further good news from Bowleven
A drilling update from Bowleven (BLVN) this morning has confirmed further drilling success at its Cameroon Sapele 1 well. They have now drilled to a current target depth of 4,539 metres and has drilled through the Cross-cut event and into the Cretaceous.Estimates of oil in place have increased from 40 -290 million barrels to 65 to 430 million barrels in the Deep Omicron, mean 217 million barrels.
Also further upside possible by the look of it, "it is believed that the well has encountered additional sands at the current TD. Further Cretaceous targets have also been identified and consequently, drilling is planned to continue upon completion of current logging activities."
Looks like the last minute spread bet punt will start to pay off this morning. Should ease the tension/anticipation of waiting for news from Xcite Energy, which has no RNS out today as yet.
Also further upside possible by the look of it, "it is believed that the well has encountered additional sands at the current TD. Further Cretaceous targets have also been identified and consequently, drilling is planned to continue upon completion of current logging activities."
Looks like the last minute spread bet punt will start to pay off this morning. Should ease the tension/anticipation of waiting for news from Xcite Energy, which has no RNS out today as yet.
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