Zenith Energy reduces its debt position
BAKU, Azerbaijan, Feb.17
By Leman Zeynalova – Trend:
Canada’s Zenith Energy company has successfully reduced its debt position, Trend reports referring to the consolidated quarterly results of the company for the three and nine months period ended December 31, 2019.
“Specifically, and in line with strategy, the company has reduced its short-term debt exposure by an amount of CAD$5,072k in comparison to the corresponding period ended December 31, 2018. During the period, the company generated gross revenues from oil and natural gas sales of CAD$3,851k, as well as CAD$490k from electricity sales,” reads the report.
During the period, Zenith successfully raised gross proceeds of NOK 20,650,000 to subscribe for 72,000,000 common shares of no-par value in the capital of the company on the Merkur Market of the Oslo Stock Exchange.
During the period, Zenith Energy had repaid the first tranche of the $1,485,000 loan which, on October 1, 2019, was successfully reduced, following successful negotiations with the lender, at a significant discount for a revised total amount of $1,000,000, representing a profit of $1,080,523.
“It had successfully repaid the unsecured notes for £90,000, with related accrued interest. It had received three Conversion Notices from the consortium of lenders and a total of 11,421,402 Conversion Shares were issued,” reads the report.
Zenith Energy is engaged in the development of Azerbaijan’s Muradkhanli-Jafarli-Zardab block of fields.
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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