Canada's Zenith Energy company has successfully renegotiated the $1,500,000 convertible loan facility announced on September 5, 2018, Trend reports citing Zenith Energy, operator for development of Muradkhanli-Jafarli-Zardab oil fields onshore Azerbaijan.
As announced on January 7, 2019, the total outstanding liability in relation to the Facility currently stands at $1,050,000.
"The company has agreed with the consortium of lenders that the terms of the Facility shall be amended to include the possibility of optional redemptions to be made by the company in lieu of conversion of the Facility by the Lenders for set redemption amounts amortised across the duration of the Facility," said the company. "In addition, provided prior notification is given by the Company to the Lenders regarding its intention to either pay the Optional Redemption or confirm that the applicable Redemption Amounts may be converted, conversion of the Redemption Amounts may only be effected by the Lenders at a fixed conversion price of £0.0505."
Furthermore, the Company and the Lenders have agreed to extend the repayment date of the Facility to May 31, 2020.
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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