Zenith Energy to raise funds for more effective operation in Azerbaijan
Baku, Azerbaijan, May 3
By Leman Zeynalova – Trend:
Canada’s Zenith Energy company, operator for development of Muradkhanli-Jafarli-Zardab block of oil fields onshore Azerbaijan, has completed a placing of new common shares of no par value in the capital of the company in the United Kingdom, Trend reports citing the company.
Zenith has issued a total of 14,334,602 common shares at a price of £0.028 in connection with the financing to raise gross proceeds of £401,369, reads a message from the company.
Reportedly, Zenith Energy intends to use the proceeds of the financing to purchase a Top Drive system and additional equipment for the mud system of the BD-260 drilling rig to ensure increased performance during well C-37 drilling operations at Azerbaijan’s Jafarli field.
Moreover, Zenith Energy announced the appointment of the UK Novum Securities Limited as joint broker to the company on the London Stock Exchange with immediate effect.
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 oil fields. Zenith Energy Ltd established its subsidiary company Zenith Aran Oil Company Ltd for production operations in these three fields. Production under the agreement began in August 2016.
Zenith holds an 80-percent participating interest in the three fields within the contract area, while SOCAR retains the remaining 20 percent. The agreement is for 25 years, with a potential extension by five additional years.
The total area of the Muradkhanli, Jafarli and Zardab fields is 642.2 square kilometers, and according to the contract, it is divided into rehabilitation and exploration territories.
The Muradkhanli-Jafarli-Zardab block is located in the Yevlakh-Agjabadi oil and gas region of Imishli district of Azerbaijan. The Muradkhanli field was discovered in 1971, Jafarli - in 1984, and Zardab - in 1981.
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