Xcite Energy triples agreement to £150m

10th Oct 2011 15:48

North Sea oilfields operator Xcite Energy has increased its standby equity distribution agreement (SEDA) with partner YA Global Master SPV by £50m to £150m. Funding from the SEDA will be used as future working capital for the company and to fund the work required to achieve first oil from the Bentley field in the North Sea, the firm said. The move is subject to approval from the Toronto Stock Exchange.Under the terms of the SEDA increase, the company will pay Global Master a fee of £250,000, of which £125,000 will be payable when the increased facility is accessed by the company and the remaining half will be paid on 01 October 2012.The company also said that it continues to make good operational progress as it moves towards first oil from the Bentley field.Xcite chief executive officer Richard Smith said: "The company continues to make good progress with its funding initiatives and operations as we move toward first oil. Together with the recent rig arrival and our positive dialogue with the Department of Energy and Climate Change, these are important milestones on our way to delivering significant value for shareholders." The share price rose 11.89% to 136.5p by 15:53.NR