.

topped up last week in readiness.,.

wow a massive 2% rise on that news....will anything get this share motoring,it needs a good kick up the a*se.

every little helps...... marky

Baler not even 1% up on good news,its crackers.

The past seems to have done a lot of damage, should be up 10%+ today.

Drawdown on Equity Line Agreement
RNS
RNS Number : 7414Z
Xcite Energy Limited
21 March 2012





NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART DIRECTLY OR INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION





TSX-V, LSE-AIM: XEL







21 March 2012



Xcite Energy Limited

("Xcite Energy" or the "Company")



Drawdown on Equity Line Agreement



Xcite Energy announces that it has drawn down on its Equity Line Agreement (the "facility") with Esousa Holdings, LLC ("Esousa") dated 16 December 2011 in the amount of £10.3 million (CAD$16.2 million). This draw down has been undertaken at a price of £1.24 (CAD$1.95) per share and will result in the issue of 8,310,540 ordinary shares of no par value in the capital of the Company (the "New Ordinary Shares") 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 ("Admission") 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 (each, an "Ordinary Share").



Subject to approval by the TSX Venture Exchange, following the issue of the 8,310,540 New Ordinary Shares the total Ordinary Shares in the Company in issue will be 239,377,218

Chairman’s Review

The year 2011 began on a very positive note following the successful testing of the 9/3b-6 and 6z wells on the Bentley field, with the demonstration that the Bentley heavy-oil reservoir could now be developed economically with the application of current technology.

The Reserves Assessment Report published in May 2011 supported this view with reserves status being assigned to the field for 28 million stock tank barrels (“MMstb”) in the First Phase Development programme. It was said at the time that assignment of further reserves only depended upon comfort being obtained from the Department of Energy and Climate Change (“DECC”) of the project to develop the core area and this opinion has subsequently been borne out in the latest Reserves Assessment Report with an effective date of 31 December 2011, prepared by the Company‟s independent auditor of reserves and resources, TRACS International Consultancy Limited (“TRACS”), in February 2012. Following the results of a review by and technical comments from DECC in response to the submitted Bentley Field Development Plan (“FDP”), TRACS has increased our proven and probable reserves to 116 MMstb, in line with our original expectations at the start of the year.

Extensive project planning work has been performed during the year to determine the optimum development of the Core Area of the field. At first this was envisaged as a two phased approach and the FDP for the First Phase Production (“FPD”) and Second Phase Production (“SPD”) was submitted to the DECC in the latter half of 2011 for their consideration. In the interests of all stakeholders, the FPD was itself split into two consecutive phases; in FPD 1A we intend to drill a motherbore well with two laterals and produce for about 90 days, after which formal approval of the FPD 1B from the DECC will be sought to commence the permanent production from the field.

In December 2011 a £25.8 million private placing with Socius CG II, Ltd was announced and also a £60 million Equity Line Facility with Esousa Holdings LLC. This Equity Line Facility replaced the previous arrangement the Company had through Yorkville Advisers, which raised £52.3 million during the year.

Funding has been used predominantly to secure the necessary equipment and make the required commitments to execute the Bentley Phase 1A development and, of particular importance, to increase the capacity of the project team and the Xcite Energy Resources Limited (“XER”) organisation to be a competent production operator. Of significance, the Rowan Norway jack-up drilling unit, designed for simultaneous drilling and production operations in harsh deep water environments, was secured and became available to the Company at the end of November 2011, with the departure from Dundee for the field on 12 March 2012 and the 9/3b-7 well having been spudded on 18 March 2012. Also a shuttle tanker was secured through a letter of intent between Teekay Shipping Norway AS and the Company in December 2011 with the contract expected to be finalised shortly.

Finally, we would like to express our appreciation of all the support and dedication we have received during this year from the XER team. The uncertainty in the capital markets has added to the normal challenges of a North Sea project, but the XER team has maintained its focus on the prize and shown remarkable flexibility to overcome problems. Of course, we also wish to express our appreciation to our investors who continue to share our belief in the Company‟s potential value. It has been, without doubt, a demanding year, but the expected value of the Company remains unchanged and we look forward to the results of the Phase 1A work programme and the future development of the Bentley field.

This is ridiculously undervalued.....crazy !...

Totaly agree with you RF.

Kuwait National Oil Firm In Takeover Talks With Ithaca Energy - Sunday Times
03/25/2012 | 10:12pm


Kuwait's national oil company is in advanced takeover talks with Ithaca Energy Inc. (IAE.T), the Sunday Times reported Sunday on its website, without directly citing its sources.

Kuwait Foreign Petroleum Exploration, the international arm of the Middle Eastern state's oil operation, has been in discussions with Ithaca for several months, the report said.

If the Kuwait bid is successful, it would likely use Ithaca as a platform to buy other North Sea oil fields, the report quoted unnamed industry sources as saying.

Full Story: http://www.thesundaytimes.co.uk/sto/business/Industry/article1001742.ece

there are plenty of others than XEL!

This is a ridiculous sp.....before the bentley discovery it was around 20p to 40p or so...now several years later and more than 100 million barrels recoverable (just about)... perhaps a lot more...production due to start within 2 months....sp is 115p....just nonsense....should be 180p if not more....blinkin' market...cannot believe how ridiculous some of these share prices have got like....well I've just bought some more....crazy this drop....market cap of 280 million only...and more than a billion pounds worth of heavy crude in the ground if not more :...ripe takeover target ? with imminent production !...

Going the wrong way, will soon be back to a £1 at this rate.

I hope not.....

Ridiculous like you say rf

Posted on ADVFN:
-----------------------------
"Socius have completed two 'Placings' worth £12.9m and £12.6m @ 85p and 95p share prices respectively. This has provided them with additional Warrants of 7.6m @ £1.02 and 6.7m @ £1.14 respectively. Xel have protected themselves with a 'Forced Exercise Provision of these warrants in the event the sp VWAP exceeds 120% of the warrant price i.e. £1.224 and £1.368 respectively. Meanwhile: Esousa are obligated to purchase shares up to the value of £60m. So far they have purchased three tranches: 30th Dec 3,765,060 @ 93.95p = £3.537m 2nd March 7,912,891 @ £1.38 = £10.9m 21st March 8,310,540 @ £1.24 = £10.3m Total £24.737m leaving an outstanding obligation to spend £35,263 on additional shares. Clearly Esousa would like the share price to remain low until their purchase obligation is complete and Xel have drawn down all the £60m. Socius probably do not want to spend additional funds just yet having already laid out £25.5m over the last 3 months. If the 20 Day VWAP exceeds the limits I've detailed above and the volume stays above 1m shares then Xel can force them to exercise the warrants which they would probably rather hold for as long as possible (max 3 years). So with the two financiers both interested in maintaing a low sp, Xel are probably keen to take Esousa out of the picture -- so are drawing down on the Equity early. Once Esousa are done they will be very happy for the sp to rise. Summary: Socius want a low sp for as long as possible up to 3 years. Esousa want a low sp until they have been asked to provide the full £60m (£35m to go). Xel want to unlock things so will run Esousa more quickly than necessary. Also aids balance sheet for Q1 results. I think we can expect to see the sp stick around the current levels for some time to come to ensure Socius hand is not forced on the warrants. But ultimately both companies will own a shed load of shares and this thing will rocket when the time is right."

Carries on like this will soon be BELOW a £1

Time is of the essence and this will cause more delays.

http://contrarianinvestoruk.squarespace.com/


Xcite Energy issues $50 million in loan notes to secure funding
Thursday, April 5, 2012 at 8:40PM
$50 million in funding means:

1. No more dilution and manipulation from Esousa and Socius. I think Smith, Cole and the other directors were fed up with the price being forced down to close to £1 in order for Socius to get warrants on the cheap

2. 1a fully funded and large chunk of 1b with West Face Capital and BP loan of $20 million (EWT could generate at least $12 milion plus profit on a flow rate of only 6000 bpd) see http://contrarianinvestoruk.squarespace.com/posts/2012/4/2/xcite-energy-bentley-well-drilling-update.html

3. No more talk of sub £1

4. 14% interest but standard for early stage project and repayable after August 2012

5. No one would loan $50 million if they truly believed the EWT would be a disaster

Xcite Energy Limited ("Xcite Energy" or the "Company") - Issue of US$50 million of Unsecured 14% Loan Notes

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART DIRECTLY OR INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION

TSX-V, LSE-AIM: XEL

TORONTO, April 5, 2012 /CNW/ - Xcite Energy announces that it has today issued US$50 million of unsecured Loan Notes to a fund managed by West Face Capital Inc. ("West Face"), a Canada-based investment management firm.

The Loan Notes have an initial term of 360 days and, subject to West Face approval, may be extended by XEL for a further 360 days. The Loan Notes bear interest at 14% per annum payable in arrears on 31 March, 30 June, 30 September and 31 December in each relevant year and at maturity. Interest can be paid or rolled up into the principal amount of the Loan Notes at the Company's discretion.

West Face is entitled to receive a maintenance fee equal to 1% of the outstanding principal amount of the Loan Notes 180 days from issue date and at maturity. The Company has paid a fee of US$1 million to a third party in connection with the initiation of this transaction.

The Company may prepay the Loan Notes at any time after 14 August 2012, either in full or in part in an amount equal to at least 10% of the principal amount outstanding, provided that it also pays on the amount prepaid accrued interest up to the date of prepayment and an amount equal to the interest that would have been paid on the amount prepaid up to maturity.

In certain circumstances (including any person(s) acquiring a 35% or greater holding in XEL's shares, the current directors of XEL ceasing to constitute the majority of its board, the amalgamation or merger of XEL into another company or the liquidation of XEL), holders of Loan Notes may elect to have all or part of the principal amount of their Loan Notes prepaid together with accrued interest and an amount equal to the interest up to maturity that would have been paid, on the amount prepaid.

Prepayment of the Loan Notes, together with accrued interest and an amount equal to the interest that would have been paid up to maturity, on the amount prepaid, may also be required from the proceeds of any non-ordinary course disposal of assets by XEL or its subsidiary, Xcite Energy Resources Limited.

West Face is also entitled to be paid in the event of any prepayment on the Loan Notes an amount equal to the maintenance fee that it would have been otherwise paid on the amount of Loan Notes prepaid.

The funds raised by the issue of these Loan Notes strengthen the Company's balance sheet and provide additional contingency funding during the important Phase 1A work programme on the Bentley field. The funds will be used for the Company's working capital requirements and general corporate purposes.

Oriel Securities