Placing to Raise Approximately £5.8 Million (C$9.3 Million) for Enhanced 9/3b-R Well Work Programme
August 24 2010 - 10:01AM
Marketwired
This Announcement is Not for Release, Publication or Distribution
in or Into the United States.
Further to its press release of August 19, 2010 announcing a
proposed fundraising, Xcite Energy Limited ("Xcite" or the
"Company") (TSX-V: XEL) (LSE: XEL) (AIM: XEL) is pleased to
announce that it has conditionally placed 9,727,756 ordinary shares
of no par value (the "Placing Shares") at a price of 60 pence
(C$0.96) per share to raise approximately £5.8 million (gross)
(C$9.3 million) from investors in the UK (the "Placing").
As stated previously, the net proceeds to the Company will be
used on an enhanced 9/3b-R well work programme, which Xcite
believes will provide greater certainty of outcome from the planned
horizontal flow test, significant additional data and an
acceleration of the planned first stage production ("FSP")
programme. Greater detail on the scope of the enhanced 9/3b-R well
work programme can be found in the Company's press release dated
August 19, 2010.
The Placing Shares have been conditionally placed by Arbuthnot
Securities Limited and FirstEnergy Capital LLP subject, inter alia,
to admission of the Placing Shares to trading on AIM ("Admission").
The Placing Shares will represent 6.7 per cent of the Company's
enlarged share capital.
The TSX Venture Exchange has conditionally approved the Placing,
subject only to usual conditions. Application for Admission has
been made to London Stock Exchange plc. Closing is expected to
occur on August 26, 2010 and Admission is expected at 14:30 (London
time) on August 26, 2010.
Following Closing and Admission, the Company expects to have
144,268,276 ordinary shares in issue with voting rights. This
figure may be used by shareholders as the denominator for the
calculations by which they will determine if they are required to
notify their interest in, or change to their interest in, the
Company under the FSA's Disclosure and Transparency Rules.
The Placing 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 24, 2010 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 +44 (0) 1330
826740 Richard Smith Chief Executive Officer Rupert Cole Chief
Financial Officer Arbuthnot Securities Limited (Nomad and
Broker) +44 (0) 207 012 2000 Antonio Bossi Director Nick Tulloch
Director Ben Wells Associate Director First Energy Capital
LLP +44 (0) 207 448 0200 Hugh Sanderson Managing Director Derek
Smith Associate Pelham Bell Pottinger +44 (0) 207 861 3232
Mark Antelme Director Paradox Public Relations +1 514 341
0408 Jean-Francois Meilleur Consultant