BAKU, Azerbaijan, Feb.14
By Leman Zeynalova – Trend:
Canada’s Zenith Energy company is raising funds to acquire new oil and gas production assets, Trend reports citing the company.
Zenith Energy Ltd. said it has completed an offering in the United Kingdom with a significant existing institutional shareholder, as well as a selection of high net-worth private investors.
“Following the UK Financing, the company has issued 9,000,000 new common shares in the capital of the company to raise gross proceeds of £135,000. The issue price of the UK Financing is £0.015, representing a premium of 5.26 percent over the closing mid-market price of Zenith's common shares admitted to trading on the London Stock Exchange on February 13, 2020,” said the company.
As Zenith Energy said, an application will be made for the UK Financing Shares to be listed on the standard segment of the FCA Official List and to be admitted for trading on the London Stock Exchange Main Market for listed securities.
“The proceeds of the UK Financing will be used to provide additional funding for the development of Zenith's production portfolio, the identification and acquisition of new oil & gas production assets, as well as for general working capital purposes,” said the company.
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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