Zenith Energy raises proceeds for Anglo African Oil & Gas plc transaction

Oil&Gas Materials 29 January 2020 11:42 (UTC +04:00)

BAKU, Azerbaijan, Jan. 29

By Leman Zeynalova – Trend:

Canada’s Zenith Energy Ltd. has announced a Private Placement on the Merkur Market of the Oslo Stock Exchange, Trend reports citing the company.

Reportedly, the company has raised gross proceeds of NOK 11,105,882 (approximately £935,000 or CAD$1,610,000) to subscribe for 55,529,412 common shares of no par value in the capital of the Company at a price of NOK 0.20 per New Common Share.

Payment and issue of the New Common Shares to complete the Private Placement is expected on or around January 31, 2020.

The Private Placement attracted strong interest from both private and institutional investors, including significant existing shareholders in Zenith.

Zenith intends to use the net proceeds for business development activities (including the purchase of new components for its drilling equipment), operational matters related to the recent Anglo African Oil & Gas plc transaction and additional working capital.

The final completion of the Private Placement is subject to approval from the TSX Venture Exchange.

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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