BAKU, Azerbaijan, Jan.6
By Leman Zeynalova – Trend:
Canadian Zenith Energy company has fully repaid one and partially settled the second of the two credit agreements entered into with a local financial institution in Azerbaijan for a total amount of approximately $442,000, Trend reports with reference to the company.
The company had two general line of credit agreements for an outstanding combined principal amount of $480,000; interest has continued to accrue.
Following the aforementioned payments, the outstanding principal amount in relation to the remaining Credit Agreement is $54,650 plus accrued interest which is now payable by June 30, 2021.
Zenith Energy Ltd. announced that in agreement with Azerbaijan’s state oil company SOCAR, the Contract Exploration Area (CEA) of its 25-year REDPSA (Rehabilitation, Exploration, Development and Production Sharing Agreement) has been terminated.
Following the termination of the CEA, the company no longer has any oil production or exploration interests in the Republic of 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.
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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