BAKU, Azerbaijan, Nov.2
By Leman Zeynalova – Trend:
During the financial year ended March 31, 2020 (April 1, 2019 to March 31, 2020), Canadian Zenith Energy company produced 74,290 barrels of oil from its assets in Azerbaijan, as compared to 85,524 barrels of oil produced in the 2019 similar period, Trend reports with reference to the company’s updated data.
The company issued equity during the course of the financial year ended March 31, 2020, raising a combined net total of CAD$11.5m to finance its operational activities and finance the purchase of key operational equipment for the development of its operational activities in Azerbaijan.
The Group recorded an after-tax loss of CAD$570,309k for the year ended March 31, 2020, compared to a loss of CAD$9,762k for the year ended March 31, 2019. This result was brought about by the loss from discontinued operations (CAD$580,633), related to the results of the subsidiary in Azerbaijan, explained in note no. 21 of these financial statements.
In view of Zenith's strategic focus on pursuing large-scale oil production and development opportunities in Africa, the company earlier decided to hand over the Contract Rehabilitation Area for Muradkhanli-Jafarli-Zardab block of fields to Azerbaijan’s state oil company SOCAR.
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.
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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