Contact Information: ENQUIRIES: Xcite Energy Limited +44 (0) 1330 826 740 Richard Smith Chief Executive Officer Rupert Cole Chief Financial Officer Arbuthnot Securities Limited Lead Broker to the Placing +44 (0)20 7012 2000 Andrew Fairclough Director Ed Burbidge Strand Partners Limited (NOMAD) +44 (0) 20 7409 3494 James Harris Director Rory Murphy Director Pelham Public Relations +44 (0) 20 7337 1500 Mark Antelme Director
Xcite Energy Limited ("Xcite Energy" or the "Company"): Placing to Raise Approximately GBP2.1 Million (CAN$3.8 Million)
This Announcement Is Not for Release, Publication or Distribution in or Into the United States
| Source: Xcite Energy Ltd
LONDON--(Marketwire - October 2, 2009) - Xcite Energy (TSX-V : XEL ) (LSE : XEL ) (AIM : XEL ), a
developer of heavy oil assets in the UK North Sea, announces that it has
conditionally placed 10,141,998 new ordinary shares of no par value (the
'Placing Shares') at a price of 21 pence (CAN$0.37) per share to raise
approximately GBP2.1 million (gross) (CAN$3.8 million) from investors in
the UK and Canada (the 'Placing').
The net proceeds will be used to assist the Company in securing the
necessary industry partners, and to further the commercial
arrangements, that are expected to enable the Company to move forward to
the next phase of its development of the Bentley field, and
for general working capital purposes.
Placing Shares have been conditionally placed in the UK by Arbuthnot
Securities Limited with institutional and other investors and in Canada by
Octagon Capital Corporation and by the Company. Application will be made
to London Stock Exchange plc, and has been made to the TSX Venture
Exchange for the Placing Shares to be admitted to trading on AIM and to
listing on the TSX Venture Exchange.
Subject, inter alia, to admission of the Placing Shares to AIM and the
listing on the TSX-V becoming effective, closing and admission are expected
to occur on 7 October 2009. The Placing Shares will represent 14.2 per
cent. of the Company's enlarged share capital. Following Admission, the
Company expects to have 71,555,798 Ordinary Shares in issue.
Richard Smith, Xcite Energy Chief Executive Officer, commented:
"We are delighted with the support of existing and new investors in this
fundraising, who have understood the value creation opportunity that
currently exists in Xcite Energy, through its Bentley field. The Company
continues to make progress in planning the next phase of the Bentley field
development, with the securing of industry partners being the priority."
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 June 30, 2008 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.