Xcite raises £4.2m to develop North Sea oil field

North Sea oilfields operator, Xcite energy, has raised £4.2m through a standby equity distribution agreement.This funding will be used as future working capital for the company and to help the company press ahead with first stage production of its Bentley field, Xcite said.The company said it had taken advantage of the agreement with investment firm Yorkville Advisors at a price of £1.58 per share.This would result in the issue of 2,680,451 ordinary shares of no par value to Yorkville, Xcite said.Investors reacted positively, with Xcite's shares rising 13% by lunchtime on Tuesday.The company is listed on AIM in London and the Toronto Stock Exchange (TSX) in Canada.However, the shares issued to Yorkville will not be sold or traded on or through the facilities of TSX.Application will be made for the admission to AIM of the new shares when the share issue is approved by the TSX Venture Exchange, Xcite said. The new shares will rank 'pari passu' with the company's existing issued ordinary shares.