TIDMZEN
RNS Number : 2870O
Zenith Energy Ltd
01 October 2019
October 1, 2019
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 ("MAR"). Upon
publication of this announcement via a regulatory information
service ("RIS"), the inside information contained in this document
is now considered to be in the public domain.
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Further Reduction of Debt
Zenith Energy Ltd., ("Zenith" or the "Company"), (LSE: ZEN;
TSX.V: ZEE; OSE: ZENA-ME), the international oil & gas
production company operating the largest onshore oilfield in
Azerbaijan, is pleased to announce that it has successfully further
reduced its debt position.
Loan Facility for US$1,485,000 and accrued interest
As announced on August 5, 2019, the Company was notified by the
guarantor of the facility, Mr. Andrea Cattaneo, Chief Executive
Officer of Zenith, that he had received legal advice towards
initiating a process of litigation against the lender in view of
the fact that his guarantee may have been obtained unlawfully.
The full amount of the principal, and related accrued interest,
of the Loan Facility is represented and accounted as a liability in
the audited Annual Financial Report of the Company as of March 31,
2019, and most recently in the unaudited Q1 Financial Statements as
of June 30, 2019 for a total amount of US$2,080,523.
As announced on September 17, 2019, the Company entered
negotiations with the lender to settle the liability at a
significant discount.
The Company can today confirm that, following negotiations with
the lender, it has successfully agreed to settle the aforementioned
liability for a total amount of US$1,000,000, representing a
reduction of US$1,080,523.
Admission of Debt Settlement Shares & Conversion Shares
On September 17, 2019, the Company announced the issue of
923,323 common shares ("Settlement Shares") following a Debt
Settlement Agreement, as well as the issue of common shares
following the receipt of a Conversion Notice for 5,343,774 common
shares ("Conversion Shares") from the lenders of the US$1,500,000
Convertible Loan Facility.
The Company can confirm that an application has been made for
both the Settlement Shares and the Conversion Shares to be admitted
to the standard segment of the Financial Conduct Authority Official
List and to trading on the Main Market for listed securities of the
London Stock Exchange ("Admission").
The Settlement Shares and Conversion Shares will rank pari passu
in all respects with the Company's existing common shares, and it
is expected that Admission will become effective on October 3,
2019.
Andrea Cattaneo, Chief Executive Officer of Zenith,
commented:
"The Board is delighted that, following these negotiations, we
have successfully reduced our debt position by in excess of 1
million USD. This further enhances our financial position and
builds on the positive progress reported during recent weeks."
Further Information:
Zenith Energy Ltd
Andrea Cattaneo, Chief Executive Tel: +1 (587) 315
Officer 9031
-----------------------------
E-mail: info@zenithenergy.ca
-----------------------------
Peterhouse Capital - Joint Broker Tel: + 44 (0) 207
469 0930
-----------------------------
Lucy Williams
-----------------------------
Charles Goodfellow
-----------------------------
Novum Securities Limited - Joint Tel: + 44 (0) 207
Broker 399 9400
-----------------------------
Charlie Brook-Partridge
-----------------------------
Hugh McAlister
-----------------------------
IFC Advisory Limited - Financial Tel: + 44 (0) 203
PR & IR 934 6630
-----------------------------
Graham Herring
-----------------------------
Zach Cohen
-----------------------------
Notes to Editors:
Zenith Energy Ltd. is an international oil and gas production
company, listed on the TSX Venture Exchange (TSX.V:ZEE) and London
Stock Exchange (LSE:ZEN). In addition, the Company's common share
capital was admitted to trading on the Merkur Market of the Oslo
Børs (ZENA:ME) on November 8, 2018. The Merkur Market is a
multilateral trading facility owned and operated by the Oslo
Børs.
The Company was assigned a medium to long-term issuer credit
rating of "B+ with Positive Outlook" on October 8, 2018 by Arc
Ratings, S.A.
The Company operates the largest onshore oilfield in Azerbaijan
following the signing of a 25-year REDPSA, (Rehabilitation,
Exploration, Development and Production Sharing Agreement), with
SOCAR, State Oil Company of the Republic of Azerbaijan, in
2016.
The Company's primary focus is the development of its Azerbaijan
operations by leveraging its technical expertise and financial
resources to maximise low-cost oil production via a systematic
field rehabilitation programme intended to achieve significantly
increased revenue. Zenith also operates, or has working interests
in, a number of natural gas production concessions in Italy. The
Company's Italian operations produce natural gas, condensate and
electricity.
Zenith's development strategy is to identify and rapidly seize
value-accretive hydrocarbon production opportunities in the onshore
oil & gas sector. The Company's Board of Directors and senior
management team have the experience and technical expertise to
develop the Company successfully.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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