ABERDEENSHIRE, UK--(Marketwire - March 18, 2010) - 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.
Contact Information: 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