Baku, Azerbaijan, Sept.12
By Leman Zeynalova – Trend:
Canada’s Zenith Energy, operator of Azerbaijan’s Muradkhanli-Jafarli-Zardab block of onshore oil fields, has entered into an agreement to proceed with a private placement to raise gross proceeds of £252,000, Trend learned from the company.
The proceeds of the private placement will fund the company's purchase of a new, latest generation truck mounted 140-ton workover rig, said the company.
“The progressive arrival of new, latest generation oil production equipment will add further impetus to our operations, lower our operational expenditure and increase our field rehabilitation capabilities,” said Andrea Cattaneo, Chief Executive Officer of Zenith. “ Our existing recently upgraded 80-ton workover rig, whilst ideal in size and capabilities for carrying out routine field rehabilitation activities and ESP replacements, is too small to workover more demanding wells, such as Z-28, where a much larger rig is required.”
Following a careful review of the technical requirements, specifically for high-impact workovers, Zenith's operational team has selected a larger, more advanced and, consequently, more expensive rig than originally planned, said the CEO.
“I expect to shortly finalize the workover rig acquisition and to confirm its estimated delivery date in Azerbaijan," he added.
Azerbaijan’s state oil company SOCAR and Zenith Aran Oil Company signed a Rehabilitation, Exploration, Development and Production Sharing Agreement (REDPSA) in March 2016 for a block that includes the Muradkhanli, Jafarli and Zardab oilfields. These fields cover an area of 642.2 square kilometers. Production under the agreement began in August of 2016.
Zenith holds a 80-percent participating interest in the three fields within the contract area, while SOCAR retains the remaining 20 percent. The duration of the agreement is 25 years, with a potential extension of 5 additional years.
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