Xcite Closes Offering to Fund Bentley Field Development

Xcite Energy 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."

 

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