TIDMZEN
RNS Number : 8956R
Zenith Energy Ltd
01 November 2019
November 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")
Completion of Financing
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 inform that has now fully closed the
private placing on the Merkur Market of the Oslo Borse.
Following up on the Company's previous announcement of October
22, 2019, whereby the Company announced increased participation in
its Norwegian private placement, the Company announces that it has
successfully closed a further increased amount of 8,977,143 new
common shares for additional gross proceeds of NOK 3,142,000
(approximately GBP 265,000.00 or CAD 447,000.00). The aggregate
number of common shares issued as part of the private placement was
37,000,000 and private placement was completed at a subscription
price of NOK 0,35 per share (3 Pence or CAD cents 5.02).
As previously announced, Zenith intends to use the net proceeds
of the offering for continuing operational drilling activity at the
Company's Muradkhanli fields.
Total Voting Rights
The Company wishes to announce, in accordance with the Financial
Conduct Authority's Disclosure Guidance and Transparency Rules, the
following information following Admission of the Common Shares
issued in the Placing.
Class of share Total number of Number of Total number of
shares voting rights voting rights
per share per class of share
Common Shares in
issue and admitted
to trading on the
Main Market of
the London Stock
Exchange 277,403,856 1 277,403,856
------------------ ---------------- ---------------------
Common Shares in
issue and admitted
to trading on the
TSXV 416,543,509 1 416,543,509
------------------ ---------------- ---------------------
Common Shares in
issue and admitted
to trading on the
Merkur Market of
the Oslo Børs 416,543,509 1 416,543,509
------------------ ---------------- ---------------------
No Common Shares are held in treasury. The above figure for
total number of Common Shares may be used by shareholders in the
Company as the denominator for the calculations by which they will
determine if they are required to notify their interest in, or a
change to their interest in, the Company under the Financial
Conduct Authority's Disclosure Guidance and Transparency Rules.
Supplement of the existing Loan Agreement
The Company would like to further announce that it has agreed to
supplement an existing convertible loan agreement (the "Loan
Agreement") it has with a consortium of lenders (the "Lenders") by
increasing the maximum amount that may be loaned by the Lenders to
the Company under the Loan Agreement by an additional
USD$1,000,000, from USD$1,500,000 to USD$2,5000,000. The conversion
terms under the Loan Agreement are the same provided in the
original loan announced on 5 September 2018, and successfully
renegotiated on 11 March 2019. The Loan Agreement provides for an
initial immediate advance of USD$500,000 and a further advance of
USD$500,000, to be provided at a later time.
Zenith can confirm that the total outstanding liability in
relation to the convertible loan provided by the Lenders will now
stand at USD$920,000 following the supplement of the existing Loan
Agreement.
Andrea Cattaneo, Chief Executive Officer of Zenith,
commented:
"The financing Zenith has secured provides additional capital
that will be invested directly into our operations.
We are taking all the necessary steps to materially increase our
daily production of oil and formulate a clear plan to optimise the
execution of our potentially transformational drilling activities.
I look forward to providing further information regarding these
operations in due course."
TSXV Approval
The transaction is subject to the approval of the TSXV in
Canada.
Further Information:
Zenith Energy Ltd
Andrea Cattaneo, Chief Executive Tel: +1 (587) 315 9031
Officer
-----------------------------
E-mail: info@zenithenergy.ca
-----------------------------
Peterhouse Capital - Joint Tel: + 44 (0) 207 469
Broker 0930
-----------------------------
Lucy Williams
-----------------------------
Charles Goodfellow
-----------------------------
Novum Securities Limited Tel: + 44 (0) 207 399
- Joint Broker 9400
-----------------------------
Charlie Brook-Partridge
-----------------------------
Hugh McAlister
-----------------------------
IFC Advisory Limited - Financial Tel: + 44 (0) 203 934
PR & IR 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 9, 2019 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.
111062651 v1
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END
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