Xcite Energy (LON:XEL, TSX-V:XEL) has increased its existing Standby Equity Distribution Agreement (SEDA) by £20 million.
The company can now raise up to £60 million through the equity line facility.
Xcite can draw down funds and issue new shares at its sole discretion. The new shares will be priced based on market conditions, and the facility is available over a three year period. It initially agreed the SEDA with an investment fund managed by Yorkville Advisors - the YA Global Master SPV Ltd – back in September.
This is the third extension of the deal. Last month Xcite doubled the size of the facility to £40 million.
The company has already made a number of drawn-downs in recent months as its continued to develop the Bentley heavy oilfield in the North Sea.
Xcite raised £13 million through the SEDA in November – with two separate drawn-downs.
Investors eagerly await the crucial flow test on the 9/3b-6z horizontal well, which will determine whether or not the Bentley field will be commercially viable.
Test were initially planned to start earlier this month however a combination of poor weather and a technical glitch has led to a slight delay.
Yesterday Xcite extended its deadline for its option over a first stage production rig, which is intended for the Bentley oilfield.
The LOI originally had a December 15 deadline when it was reported on November 17, but this has been extended to January 15 2011.
The agreement is with British American Offshore Limited (BAOL), part of Rowan Companies Inc, for the N-Class "Rowan Norway", a harsh environment, deep water jack-up unit, designed and built for simultaneous drilling and production, which is currently under construction.