Zenith Energy Ltd. has completed a placing of new units, with each unit comprised of one ordinary 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, Trend reports citing the company.
Each unit was issued at a price of $0.04 Canadian dollars.
Pursuant to the Placing, Zenith has issued a total of 43,012,500 common shares and 43,012,500 warrants, to raise gross proceeds of 1,720,500 Canadian dollars.
The company intends to use the proceeds of the Placing to fully fund the execution of well deepening operations in wells C-37 and C-30.
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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