Canada's Zenith Energy company has completed the placing of new units in Canada to raise funds for well deepening operations in Azerbaijan, Trend reports citing Zenith, which is the operator for development of Muradkhanli-Jafarli-Zardab oil field onshore Azerbaijan.
Following the completion of the Canadian placing, Zenith has issued a total of 47,812,500 common shares and 47,812,500 warrants raising gross proceeds of 1,912,500 Canadian dollars, reads the message from Zenith.
The Canadian placing resulted in the issue of new units at a price of 0.04 Canadian dollars consisting of one common share of no par value in the capital of the company and one full common share purchase warrant, exercisable within 12 months at an exercise price of 0.10 Canadian dollars.
The company intends to use the proceeds of the Canadian placing to fully fund the execution of well deepening operations in wells C-37 and C-30 of the Jafarli field.
Azerbaijan's state oil company SOCAR and Zenith Aran Oil Company signed a Rehabilitation, Exploration, Development and Production Sharing Agreement (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.
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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