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Xcite Energy, Max Petroleum, San Leon Energy, Hochschild news briefs

By Fox-Davies Capital

Xcite Energy has signed a legally binding letter of agreement with Challenger Minerals (North Sea) Limited ("CMNS") for CMNS to farm in to the Bentley field, commencing with the forthcoming 9/3b-R well intended to be drilled this summer. CMNS, a subsidiary of Transocean Drilling U.K. Limited, will provide US$4 million as its share of the 9/3b-R well costs in exchange for 4% working interest in the Bentley field through an earn-in mechanism, which allows CMNS to join the Bentley field licence at any time prior to the commencement of the first phase development of the field.

Max Petroleum has paid the 8 March 2010 interest payment due on its US$75,000,000 6.75% Convertible Bonds in cash, electing not to convert the interest payment into additional principal on the Bonds (the "PIK Option"). As a result, the bondholders' potential right to receive warrants to subscribe for 30 million ordinary shares in the Company at an exercise price of 5p per share have  lapsed in accordance with the terms of the Warrant Deed dated 11 August 2009.

San Leon Energy announced an amendment to the conditions of the acquisition of Island by San Leon, in addition to the conditions set out in the 2.5 announcement of 25 February 2010 regarding the acquisition. The two Companies have agreed that the Acquisition will also be conditional upon the admission of the new San Leon Shares, to be issued in connection with the acquisition to trading on AIM, becoming effective in accordance with the AIM Rules or, if San Leon and Island so determine and subject to the consent of the Panel, the London Stock Exchange agreeing to admit such shares to trading on AIM subject only to (i) the allotment of such shares and/or (ii) the Scheme becoming effective. This condition is a requirement pursuant to Rule 24.9 of the Irish Takeover Rules. The Irish Takeover Panel has given its consent to San Leon and Island to make this amendment to the terms of the 2.5 Announcement. Other than as described in this announcement, all defined terms set out in the 2.5 Announcement shall apply to this announcement.

Hochschild announced that it has sold its 36.9% holding in Zincore Metals Inc for a total cash consideration of C$10.3 million. As a result of the transaction, Hochschild has no further interest in Zincore. The Company acquired ownership of 38,100,000 common shares of Zincore as a result of its purchase of Southwestern Resources Corp in May 2009. Hochschild has disposed of its stake as it does not constitute a core asset for the Company.