Baku, Azerbaijan, July 2
By Leman Zeynalova – Trend:
The proved and probable oil reserves of Canadian Zenith Energy company in Azerbaijan have decreased as of March 31, 2019, compared to the same period of the last year, Trend reports citing the company.
In accordance with Canadian securities laws, the company filed its annual audited financial results for the financial year ended March 31, 2018 on SEDAR and that it has filed its year-end independent evaluation of reserves for the year ending March 31, 2019 (the "2019 CPR"), prepared in accordance with National Instrument 51-101: Standards of Disclosure for Oil and Gas Activities ("NI 51-101"), on SEDAR.
Filing of the aforementioned results on SEDAR took place on June 28, 2019.
The 2019 CPR has assessed Zenith's proved plus probable ("2P") reserves in Azerbaijan, for the duration of the 25-year Rehabilitation, Exploration, Development and Production Sharing Agreement ("REDPSA") effective from August 11, 2016, as approximately 30.6 million barrels of oil, decreasing from approximately 31.7 million as at March 31, 2018.
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.
---
Follow the author on Twitter: @Lyaman_Zeyn