BAKU, Azerbaijan, Dec.17
By Leman Zeynalova – Trend:
Canada’s Zenith Energy company, which is the operator for development of Muradkhanli-Jafarli-Zardab block of fields onshore Azerbaijan, has made a private placement on the Merkur Market of the Oslo Stock Exchange, Trend reports citing Zenith Energy.
The company said it has successfully raised gross proceeds of NOK 7,700,000 (approximately £638,000 or CAD$1,123,430) to subscribe for 35,000,000 common shares of no par value in the capital of the company at a price of NOK 0.22 per New Common Share (approximately £0.02 or CAD$0.03).
Payment and issue of the New Common Shares to complete the Private Placement is expected on or around December 18, 2019.
The Private Placement attracted strong interest from both private and institutional investors.
Zenith intends to use the net proceeds of the Private Placement to purchase drilling equipment and to provide additional general working capital.
The Private Placement is subject to approval from the TSX Venture Exchange.
Azerbaijan’s state oil company SOCAR and Zenith Aran Oil Company signed a 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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