Zenith Energy approves Prospectus for issuance of 25M euros

Oil&Gas Materials 6 November 2019 15:08 (UTC +04:00)

BAKU, Azerbaijan, Nov.6

By Leman Zeynalova – Trend:

Canada’s Zenith Energy company has announced approval of its Base Prospectus (Prospectus) for the issuance of 25,000,000 euros worth unsecured, multi-currency Euro Medium Term Notes at par value (Notes) on the Third Market (MTF) of the Vienna Stock Exchange (Wiener Borse AG),Trend reports citing the company.

The Notes can be issued in tranches at Zenith's discretion up to an aggregate principal amount not to exceed the value of Euro 25,000,000 and in any currency agreed between Zenith and the relevant investor including EUR, CAD$, GBP, USD, and CHF.

The current maximum aggregate principal amount of all Notes at any one time outstanding will not exceed Euro 25,000,000 (or its equivalent in other currencies), subject to an increase from time to time in accordance with applicable law.

The Notes are governed by Austrian law and, since the Notes are not convertible into equity of Zenith, the issuance of the Notes is not subject to the approval of the TSX Venture Exchange in Canada.

The issue of the Notes is aligned with the Company's strategy of diversifying its financing towards non-equity dilutive funding to support its successful development.

"We are very pleased to have received approval for our new EMTN instrument, especially as we are delivering on our declared strategy of seeking to maximise the use of non-dilutive financing to support the Company's development. It is important to underline that these Notes give investors improved flexibility because the currency, issue price and interest rate - amongst other key terms - can be determined with the relevant investor in relation to each specific subscription. This is expected to offer a number of benefits to marketing and distributing the Notes,” said Andrea Cattaneo, Chief Executive Officer of Zenith.

Zenith Energy is the operator for development of Muradkhanli-Jafarli-Zardab block of oil fields onshore Azerbaijan.

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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