BAKU, Azerbaijan, Jan. 21
By Leman Zeynalova – Trend:
Canada’s Zenith Energy Ltd. has entered into the put and call option agreement with Anglo African Oil & Gas plc (AAOG), Trend reports citing the company.
The agreement was reached over the residual holding of 20 percent in Anglo African Oil & Gas Congo SAU (AAOG Congo) that AAOG will retain (the Residual Shares) following the signing of a conditional share purchase agreement (SPA) for Zenith's acquisition of an 80 percent interest in AAOG Congo, said the company.
The Put and Call Option Agreement incorporates the key provisions of the agreed term sheet for the put and call option agreement with AAOG which were announced by the company on January 13, 2020.
As announced on December 27, 2019, the SPA is conditional, inter alia, on the passing of an ordinary resolution of shareholders in AAOG in a General Meeting, to be held on January 13, 2020, approving the Acquisition and certain regulatory requirements in the Republic of the Congo, including consent of the Minister of Hydrocarbons (Completion).
On January 13, 2020, the Company announced that the shareholders of AAOG had passed the resolution presented at the general meeting held on January 13, 2020 to approve the sale of 80 percent of the shares in AAOG Congo to Zenith.
The Company is working towards the fulfilment of the remaining conditions precedent in order to achieve Completion.
Zenith Energy is the operator for the development of Muradkanli-Jafarli-Zardab block of fields onshore Azerbaijan.
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.
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