Zenith Energy raises capital to increase investments in Azerbaijan

Oil&Gas Materials 8 February 2019 12:30 (UTC +04:00)

Baku, Azerbaijan, Feb.8

By Leman Zeynalova – Trend:

Canada’s Zenith Energy company, which is the operator for development of Muradkhanli-Jafarli-Zardab block of oil fields onshore Azerbaijan, has raised capital in Canada and the UK to increase its investments in Azerbaijan, Trend reports citing the company message.

As result of market demand, it has completed two separate offerings, one in Canada and the other in the United Kingdom with a consortium of private and institutional investors to raise a total of £606,640, reads the message.

The company said it intends to use the aggregate proceeds of the Canadian Financing and the UK Financing to increase its continued investment in its Azerbaijan field operations and for general working capital.

"I am grateful to our new and existing institutional shareholders, as well as other major shareholders, who have participated in these offerings. As announced in past months, the Company has made significant progress, on both a corporate and operational level, which has created a very strong opportunity for value creation in the event of a successful fulfillment of our vast, unchanged potential in the period ahead, " Andrea Cattaneo, Chief Executive Officer, said.

In 2016 Zenith entered into a twenty-five year REDPSA (Rehabilitation, Exploration, Development and Production Sharing Agreement) with SOCAR (State Oil Company of the Azerbaijan Republic), granting Zenith an 80 percent participating interest in current and future production.

Muradkhanli is the largest and most productive of Zenith’s three contingent fields, located in the Aran region of Azerbaijan, 30 kilometers south from the town of Kurdamir.

Zardab is the least developed of Zenith’s three contingent oilfields in Azerbaijan. Zardab borders the north-west flank of the Muradkhanli oilfield, on the banks of the Kura river, 7 km south-eastwards from the city of Zardab, and occupies an area of approximately 100 square kilometers.

Jafarli is the smallest of Zenith’s three fields and is located 7 kilometers south-east of the town of Zardab.


Follow the author on Twitter: @Lyaman_Zeyn