THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES
ABERDEENSHIRE, UK--(Marketwire - October 7, 2009) - XCITE Energy Limited ("Xcite" or the
"Company") (TSX-V: XEL) (AIM: XEL), a developer of heavy oil assets in the
UK North Sea, announces that it has completed its previously announced
placing of 10,141,998 new ordinary shares (the "Placing Shares") at a price
of 21 pence (CAN$0.37) per share to raise gross proceeds of
approximately £2.1 million (CAN$3.8 million) from investors in the UK and
Canada. Completion of the placing is subject to admission to trading on
AIM of the Placing Shares which is expected to occur at 2:30 pm (London
time) today.
Placing Shares were placed in the UK by Arbuthnot Securities Limited with
institutional and other investors and in Canada by Octagon Capital
Corporation and by the Company. In connection with the financing, the
Company has agreed to pay an aggregate cash commission of CDN$183,125 to
Arbuthnot Securities Limited (UK) and Octagon Capital Corporation (Canada).
The Placing Shares represent 14.2 per cent. of the Company's enlarged share
capital. Except in accordance with Canadian securities laws, 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 February 8, 2010. The closing of the private
placement remains subject to final acceptance of the TSX Venture Exchange.
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.
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