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Yorkville Advisors completes equity financing deal with Xcite Energy

Yorkville Advisors, the US-based investment manager to an alternative investment fund, has entered into a GBP20m standby equity distribution agreement on behalf of one of its funds with AIM listed Xcite Energy.

Xcite Energy is an exploration and development company focused on heavy oil resources in the North Sea.

Xcite Energy intends to use funding to assist in its future working capital requirements and to progress towards the first stage production of the Bentley field. The company aims to become a significant independent heavy oil producer in the North Sea by 2014.

The agreement will enable Xcite Energy for up to 36 months from signing to withdraw discretionary funds of up to GBP20m in tranches in exchange for the issue of new equity. The newly issued shares will be priced relative to the prevailing market price at the time of each drawdown.

Rupert Cole, chief financial officer for Xcite Energy, says: "Working with Yorkville has been a good example of a highly collaborative approach, which will provide the company with financing at times that suit its needs. Yorkville’s financial capacity and flexibility will allow us to move forward rapidly at an important time in our corporate development. We view Yorkville as a long term business partner with genuine alignment of goals, which fully reflects the Xcite Energy approach to its oil field development partners."

Brian Kinane, managing director, Yorkville Advisors UK, says: "We are pleased to become a financial partner of Xcite Energy given the potential of the Bentley field, the Xcite business model and the strong management capability. The SEDA commitment of GBP20m represents the starting point in our support of Xcite’s journey to becoming a major North Sea oil producer."

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