Xcite Energy Limited Pricing of Offering of Ordinary Shares
March 10 2010 - 1:08AM
Marketwired
This Announcement Is Not for Release, Publication or Distribution
in or Into the United States.
Xcite Energy Limited
("Xcite Energy" or the "Company")
Pricing of Offering of Ordinary Shares
Xcite Energy (TSX-V: XEL) (LSE: XEL) (AIM: XEL), a developer of
heavy oil assets in the UK North Sea, announced today that it has
priced the equity financing described in the Company's preliminary
short form prospectus dated February 5, 2010.
The Company has entered into an agency agreement dated March 9,
2010 with Octagon Capital Corporation and CIBC World Markets Inc.
as agents, and Arbuthnot Securities Limited as special selling
agent, in respect of the offering of ordinary shares in the capital
of the Company (each an "Ordinary Share") contemplated by the
Company's preliminary short form prospectus dated February 5, 2010.
Under the terms of the agency agreement, the Company will offer
Ordinary Shares for sale pursuant to the short form prospectus at
prices of: (i) C$0.62 per Ordinary Share to subscribers in North
America; and (ii) £0.40 per Ordinary Share to subscribers in the
United Kingdom, to raise aggregate gross proceeds of approximately
C$38,422,884 (£24,982,559 based on an exchange rate of
C$1.00:£0.6502).
The Company anticipates filing a final short form prospectus on
March 10, 2010 and anticipates closing the offering on or about
March 18, 2010. Closing of the offering is subject to customary
conditions, including the approval of the TSX Venture Exchange.
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.
The Ordinary Shares have not been, and will not be, registered
under the United States Securities Act of 1933, as amended (the
"Securities Act"), and, may not be offered, sold or delivered,
directly or indirectly, in the United States or to or for the
account or benefit of any U.S. person unless the securities are
registered under the Securities Act or an exemption from the
registration requirements of the Securities Act is available. This
press release does not constitute an offer to sell or solicitation
of an offer to buy any securities, nor shall there by any sale of
securities in any state in the United States in which such offer,
solicitation or sale would be unlawful.
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 December 8, 2009 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.
ENQUIRIES: Xcite Energy Limited Richard Smith Chief Executive
Officer Rupert Cole Chief Financial Officer +44 (0) 1330 826740
Strand Hanson Limited (Nomad) James Harris Rory Murphy +44 (0) 20
7409 3494 Arbuthnot Securities Limited (Broker) Andrew Fairclough
Ed Burbidge +44 (0)20 7012 2000 Pelham Bell Pottinger Mark Antelme
+44 (0) 20 7337 1500 Paradox Public Relations Jean-Francois
Meilleur Karl Mansour +1 514 341 0408
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