OIL explorer Xcite Energy announced a £25.8million placing and £60million equity credit agreement yesterday.
The Aberdeen firm is moving towards first oil from its Bentley discovery in the UK North Sea.
It has agreed the private placement with Socius CG II – a subsidiary of Socius Capital Group, of Bermuda, which invests in emerging growth companies in America, Canada, Europe and Australia.
The equity credit deal is with Esousa Holdings, who Socius has been a co-investor with in previous transactions.
Xcite has also terminated its standby equity agreement with YA Global Master SPV.
The oil explorer said the placing and equity credit would further strengthen its balance sheet to allow it to progress Phase 1A of the development of Bentley.
Chief executive Richard Smith said: “Against a challenging economic backdrop, we are very pleased to have further strengthened our balance sheet as we move forward with the field-development plan towards first oil.”
Earlier this week, Xcite said a shuttle tanker had been lined up for the field.
It has signed a letter of intent with Teekay Shipping Norway for the vessel for Phase 1A. The companies are expected to enter into a definitive agreement for one of Teekay’s dynamically positioned shuttle tankers within three months.
Xcite is targeting first oil from Bentley next year.
The core Bentley area has been estimated to have 150million recoverable barrels of oil.
The Rowan Norway jack-up rig is to be used on the discovery.
Xcite shares closed 3.7% lower last night at 98p.