Xcite Energy Limited Closes C$38.4 million (£24.9 million) Placing
March 18 2010 - 9:34AM
Marketwired
This Announcement Is Not for Release, Publication or Distribution
in or Into the United States.
Xcite Energy Limited
("Xcite Energy" or the "Company")
Xcite Energy (TSX-V: XEL) (LSE: XEL) (AIM: XEL), a developer of
heavy oil assets in the UK North Sea, is pleased to announce that
it has successfully raised gross proceeds of C$38.4 million
(approximately £24.9 million) through its previously reported
placing of new ordinary shares, principally to institutional
investors.
As a result of the placing 61,972,394 new Ordinary Shares have
been issued at a price of C$0.62 (£0.40) per Ordinary Share.
The net proceeds of the offering, together with US$4 million in
funds committed to the Company by Challenger Minerals (North Sea)
Limited, are anticipated to be used primarily to fund the drilling
and flow testing of the 9/3b-R pre-development well on the
Company's Bentley oil field. The balance of the net proceeds of the
offering will be used for general working capital purposes.
Richard Smith, Chief Executive of Xcite Energy, commented:
"This fund raising represents a significant step forward for the
Company in the overall achievement of the development plan for the
Bentley field. We have successfully obtained commitment from our
Bentley partners, BP, Transocean/ADTI/ChallengerMinerals, AMEC and
Fugro in the last few months and, now that we have the finance in
place, we have the resources to drill the 9/3b-R well expected to
commence during the summer of 2010."
The offering was completed by Octagon Capital Corporation and
CIBC World Markets Inc. as agents in Canada, and Arbuthnot
Securities Limited as special selling agent in the United Kingdom.
The TSX Venture Exchange has conditionally approved the listing of
the new Ordinary Shares, and the Company has applied to London
Stock Exchange Plc for admission of such Ordinary Shares to trading
on AIM, which is expected to occur at 14:30 (UK time) on 18 March
2010. Following Admission, the Company expects to have 133,528,192
Ordinary Shares in issue.
The Ordinary Shares have not been, and will not be, registered
under the United States Securities Act of 1933, as amended (the
"Securities Act"), and, may not be offered, sold or delivered,
directly or indirectly, in the United States or to or for the
account or benefit of any U.S. person unless the securities are
registered under the Securities Act or an exemption from the
registration requirements of the Securities Act is available. This
press release does not constitute an offer to sell or solicitation
of an offer to buy any securities, nor shall there by any sale of
securities in any state in the United States in which such offer,
solicitation or sale would be unlawful.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward-Looking Statements
Certain statements contained in this announcement constitute
forward-looking information within the meaning of securities laws.
Forward- looking information may relate to the Company's future
outlook and anticipated events or results and, in some cases, can
be identified by terminology such as "may", "will", "should",
"expect", "plan", "anticipate", "believe", "intend", "estimate",
"predict", "target", "potential", "continue" or other similar
expressions concerning matters that are not historical facts. These
statements are based on certain factors and assumptions including
expected growth, results of operations, performance and business
prospects and opportunities. While the Company considers these
assumptions to be reasonable based on information currently
available to us, they may prove to be incorrect. Forward-looking
information is also subject to certain factors, including risks and
uncertainties that could cause actual results to differ materially
from what we currently expect. These factors include risks
associated with the oil and gas industry (including operational
risks in exploration and development and uncertainties of estimates
oil and gas potential properties), the risk of commodity price and
foreign exchange rate fluctuations and the ability of Xcite Energy
to secure financing. Additional information identifying risks and
uncertainties are contained in the Company's annual information
form dated December 8, 2009 and in the annual Management's
Discussion and Analysis for Xcite Energy dated March 26, 2009 filed
with the Canadian securities regulatory authorities and available
at www.sedar.com. The Company disclaims any intention or obligation
to update or revise any forward-looking statements whether as a
result of new information, future events or otherwise, except as
required under applicable securities regulations.
ENQUIRIES: Xcite Energy Limited Richard Smith Chief Executive
Officer Rupert Cole Chief Financial Officer +44 (0) 1330 826 740
Arbuthnot Securities Limited (Broker) Andrew Fairclough Ed Burbidge
+44 (0)20 7012 2000 Strand Hanson Limited (Nomad) James Harris Rory
Murphy +44 (0) 20 7409 3494 Pelham Bell Pottinger Public Relations
Mark Antelme Henry Lerwill +44 (0) 20 7337 1500 Octagon Capital
Corporation H. Richard Smith Sylvia Lai +1 416 368 3322 Paradox
Public Relations Jean-Francois Meilleur Karl Mansour +1 514 341
0408