SOURCE: Xcite Energy Ltd

August 26, 2010 10:02 ET

Xcite Closes Placing for Enhanced 9/3b-R Well Work Programme

ABERDEENSHIRE, UK--(Marketwire - August 26, 2010) -  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.

Contact Information

  • 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