BAKU, Azerbaijan, Nov.3
By Leman Zeynalova – Trend:
Canadian Zenith Energy company recorded an after-tax loss of CAD$570,309,000 for the year ended March 31, 2020, compared to a loss of CAD$9,762,000 for the year ended March 31, 2019, Trend reports with reference to the company’s updated data.
This result was brought about by the loss from discontinued operations (CAD$580,633), related to the results of the subsidiary in Azerbaijan, said the company.
Group production costs for the year were CAD$2,364k, compared to CAD$530k in 2019. Finance expense for the year was CAD$1,742k (2019: CAD$1,121k expense). Cash balances of CAD$ 1,220k (2019: CAD$3,058k) were held at the end of the financial year. Total equity attributable to the ordinary shareholders of the Group was CAD$9,829k as of March 31, 2020, (2019: CAD$569,081k).
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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