SOURCE: Xcite Energy Ltd

March 18, 2011 03:00 ET

Xcite Energy Limited ("Xcite Energy" or the "Company") GBP 40 Million Increase in Equity Line

ABERDEENSHIRE, UNITED KINGDOM--(Marketwire - March 18, 2011) - This Announcement Is Not for Release, Publication or Distribution in or Into the United States.

Xcite Energy (TSX-V: XEL) (LSE: XEL) (AIM: XEL) announces that it has increased its Standby Equity Distribution Agreement ("SEDA") with YA Global Master SPV Ltd ("Yorkville") by £40 million to £100 million. This is subject to TSX Venture Exchange approval.

In connection with this SEDA increase, the Company will pay Yorkville an aggregate fee of £400,000, of which £100,000 will be payable when any part of the first £20 million of this increased facility is accessed by the Company, £100,000 will be payable when any part of the second £20 million is accessed by the Company and £100,000 will be paid on 27 September 2011 in respect of each £20 million tranche that has been accessed at that time. Prior to this SEDA increase, £27.25 million was available for draw down.

Funding under the SEDA will be used as future working capital for the Company and to progress towards the first stage production of the Bentley field.

Neither the 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 October 26, 2010 and in the annual Management's Discussion and Analysis for Xcite Energy dated October 29, 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
    Richard Smith
    Chief Executive Officer
    Rupert Cole
    Chief Financial Officer
    +44 (0) 1483 549 063

    Arbuthnot Securities Limited
    (Nomad and Broker)
    Antonio Bossi
    Director
    +44 (0) 20 7012 2000

    Pelham Bell Pottinger
    Mark Antelme
    Henry Lerwill
    Director
    +44 (0) 20 7861 3232

    Paradox Public Relations
    Jean-Francois Meilleur
    Consultant
    +1 514 341 0408