Xcite Energy (LON:XEL,TSX-V: XEL) has secured up to £20 million in new capital, with a deal for an equity line facility.
The company has entered a Standby Equity Distribution Agreement (SEDA) with an investment fund managed by Yorkville Advisors, the YA Global Master SPV Ltd
"This SEDA facility is a very useful part of our funding options,” Xcite Energy chief executive Richard Smith commented.
“We are very pleased to have the independent financial capacity that Yorkville can provide at this vital time in our corporate development."
Xcite plans to use the SEDA funding to assist its future working capital requirements, and to avoid delays as it progresses towards the first stage production of the Bentley field in the North Sea.
In last month’s interim results statement, Richard Smith said that the next few months would be transformational.
Xcite told investors that it has secured an alterative rig to carry out the 9/3b-R well, and consequently, it has been able to expand the drilling programme to include a ‘slant’ well section.
"This has been another important period for the company and we have now put in place the key elements of the work programme for the 9/3b-R well,” Smith said.
“We look forward to a transformational few months as we seek to demonstrate the commercial
Disclosure: The author holds no position within the company