Xcite Energy to Raise Funds for Securing Bentley Field Partners
Xcite Energy has conditionally placed 10,141,998 new ordinary shares of no par value 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 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 October 7, 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."
- Xcite Confirms $35-per-Barrel Costs for Bentley Field (May 29)
- Xcite Signs Rig Provision Agreement for Bentley Field (Nov 17)
- Xcite Signs Services Deal with Baker Hughes for Bentley Field (Oct 20)