Xcite Closes Placing for Enhanced 9/3b-R Well Work Programme
August 26 2010 - 10:02AM
Marketwired
This Announcement Is Not for Release, Publication or Distribution
in or Into the United States
Further to its press releases of August 19, 2010 and August 24,
2010 announcing a proposed fundraising, Xcite Energy Limited
("Xcite" or the "Company") (TSX-V: XEL) (LSE: XEL) (AIM: XEL)
announces that it has completed the placing of 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 gross proceeds of £5,836,653
(gross) (C$9,338,645) from investors in the UK (the "Placing").
Admission to trading on AIM of the Placing Shares occurred at 2:30
pm (London time) today.
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 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 were placed by Arbuthnot Securities Limited
and FirstEnergy Capital LLP. In connection with the Placing, the
Company has agreed to pay an aggregate cash commission of £339,789
to Arbuthnot and FirstEnergy.
The Placing Shares will represent 6.7 per cent of the Company's
enlarged share capital. Except in accordance with Canadian
securities laws and with prior written approval of the TSX Venture
Exchange, the Placing Shares may not be sold or otherwise traded on
or through the facilities of the TSX Venture Exchange or otherwise
in Canada or to or for the benefit of a Canadian resident until
December 27, 2010.
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 FirstEnergy 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