Xcite Energy has drawn down on its Equity Line Agreement with Esousa Holdings, dated 16 December 2011 in the amount of £3.537 million (CAD$5.571 million).

This draw down has been undertaken at a price of £0.9395 (CAD$1.480) per share and will result in the issue of 3,765,060 ordinary shares of no par value in the capital of the Company to Esousa. This funding will be used as future working capital for the Company and to progress towards first oil from the Bentley field.

Subject to the terms of the facility and except in accordance with Canadian securities laws and with prior written approval of the TSX Venture Exchange, the New Ordinary Shares may not be sold or otherwise traded on or through the facilities of the TSX Venture Exchange or otherwise in Canada or to or for the benefit of a Canadian resident until the date that is four months and one day from the date of issue.

Application will be made for the admission to AIM of the New Ordinary Shares upon conditional approval of the share issue by the TSX Venture Exchange. The New Ordinary Shares will rank pari passu with the Company's existing issued ordinary shares.

Subject to approval by the TSX Venture Exchange, following the issue of the 3,765,060 New Ordinary Shares the total Ordinary Shares in the Company in issue will be 209,770,424.

Tags: Xcite Energy