Xcite taps US partner for £12.5m

XCITE Energy, the Aberdeen-based oil and gas explorer, yesterday drew down a further £12.5 million of cash from US investment manager Yorkville Advisors to fund the first stage of production on the Bentley field in the North Sea.

Under Xcite and Yorkville's "standby equity distribution agreement", the US firm will get 10.6 million shares at 118p each.

Chief financial officer Rupert Cole and exploration and development director Stephen Kew are each buying one million shares from Yorkville at 118p. Following the sale, the pair will hold about 6.2 million shares in the company.

Xcite closed down 2.25p at 138.75p having hit an intra-day high of 162p before sliding back. The stock has lost two-thirds of its value since May's reserves report for the Bentley field but had rallied by 31p on Wednesday.