UK 19:04 Saturday, 17 October 2026
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
It was very disappointing to read about Xcite Energy’s (XEL) options award this morning. In total the company has awarded 6.7million options, with an exercise price of £0.64 (yesterday’s close), to various members of staff and the board. The bulk of these options go to employees and there shouldn’t be many concerns about this. I appreciate the need to keep the troops happy and to retain key players. Giving employees a sense of ownership in the business has to be positive. However, the 2.65million options the directors have awarded themselves are in extremely poor taste. Broadly speaking, I’ve become a fan of Xcite’s over the last four or five months, but I’m under no illusions that recent performance can yet be judged a success. The new strategy is risky and so far, judging by the share price, the market is not convinced. Xcite’s board is in serious need of a credibility overhaul. Today, it has, rather unfortunately, thrown away an excellent opportunity to demonstrate its contrition for not securing a farm-out and genuine commitment to building future shareholder value.
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Comments
C H Ingoldby
‘‘So come on Rupert, do the right thing. Give up those options.’‘
You’re assuming that the directors are motivated by anything other than what they can squeeze out of the company for themselves as quickly as possible and that an appeal to their better nature is going to persuade them to give up large amounts of raw cash.
I trust you were being ironic?
Ben Turney
@C H – no, I’m not being ironic. I genuinely hope they do decide to forgo these options. Let’s see
Aerostar
Options priced at 64p with a vesting period. As long as the price is greater than 64p they make money, as do we. I can’t see a problem.
C H Ingoldby
In that case, I await with interest the response of the directors to this appeal to their ethics and sense of probity.
Ben Turney
@Aerostar you only make money if you are a new holder. The problem is that this award is not tied to performance in delivering shareholder value.
@C H I plan to ask for official comment on this tomorrow. I’ll report back if I get any sort of response
Muse
I happen to agree with your comments but I bet you don’t get a response.
FIONA MCLELLAN
What was the response? Surely a year is long enough?
Incredible.
I am beginning to think this may not get to £12 very quickly.
Ingrid Barbour-Hunter
The above message must have been relayed via an Ouija board. Post-passing ramping is a lot more serious than post-partum ramping, which had been her forte since 2001.