Xcite Energy Closes C$38.4 million (£24.9 million) Placing

Xcite Energy (TSX-V: XEL) (LSE: XEL) (AIM: XEL) reported that it 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.

The press release is quoted as saying:

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.

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