Zenith Energy Ltd Zenith issues equity to fund workover rig purchase (3029Q)
11 September 2017 - 4:01PM
UK Regulatory
TIDMZEN
RNS Number : 3029Q
Zenith Energy Ltd
11 September 2017
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").
September 11, 2017
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Zenith issues equity to fund workover rig purchase
Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; TSX.V:
ZEE), the dual listed international oil & gas production
company operating the largest onshore oilfield in Azerbaijan, is
pleased to announce that the Company has entered into an agreement
to proceed with a private placement (the "Private Placement") to
raise gross proceeds of GBP252,000 (approximately CAD$ 404,000)
through the issue of 3,600,000 new common shares of no par value in
the capital of the Company ("New Common Shares") at a price of
GBP0.07 (approximately CAD$ 0.11) per share.
The proceeds of the Private Placement will fund the Company's
purchase of a new, latest generation truck mounted 140-tonne
workover rig. After carefully evaluating the Company's evolving
technical requirements for the success of its field rehabilitation
activities in Azerbaijan, specifically more complex workovers
involving fishing jobs in wells beyond the depth of 3500 metres,
Zenith's operational team has selected a larger workover rig than
originally announced by the Company on July 14, 2017. The rig will
also be capable of performing sidetracks, and carrying out well
completion in newly drilled wells once the Company's drilling
programme commences.
The New Common Shares will comprise approximately 3.653% of the
Company's enlarged issued share capital at the date of listing on
the London Stock Exchange, and are anticipated to be issued as
depository interests in CREST in the United Kingdom. An application
will be made for the New Common 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 (the "Admission"). An application will also
be made for the New Common Shares to be listed on the TSX Venture
Exchange. It is expected that Admission will become effective and
unconditional dealings in the New Common Shares will begin on
September 15, 2017.
Following Admission, the Company's issued share capital will
comprise 128,063,146 common shares with one voting right per share.
No shares are held in Treasury. The total number of voting rights
in the Company will therefore be 128,063,146.
The figure of 128,063,146 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 share capital of
the Company.
The transaction is subject to the Approval of the TSXV in Canada
and of the Main Market of the London Stock Exchange in the United
Kingdom.
Andrea Cattaneo, Chief Executive Officer of Zenith,
commented:
"Our Azerbaijan field development activities are building
significant momentum. The progressive arrival of new, latest
generation oil production equipment will add further impetus to our
operations, lower our operational expenditure and increase our
field rehabilitation capabilities.
Our existing recently upgraded 80-tonne workover rig, whilst
ideal in size and capabilities for carrying out routine field
rehabilitation activities and ESP replacements, is too small to
workover more demanding wells, such as Z-28, where a much larger
rig is required.
It is important to note that following a careful review of our
technical requirements, specifically for high-impact workovers,
Zenith's operational team has selected a larger, more advanced and,
consequently, more expensive rig than originally planned.
I expect to shortly finalise the workover rig acquisition and to
confirm its estimated delivery date in Azerbaijan."
For further information, please contact:
Zenith Energy Ltd.
Andrea Cattaneo
Chief Executive Officer & President
Email: info@zenithenergy.ca
Telephone: +1 (587) 315 9031
Telefax: +1 (403) 775 4474
Allenby Capital Limited - (Joint Broker)
Nick Harriss
Nick Athanas
Richard Short
Telephone: + 44 (0) 203 328 5656
Optiva Securities - (Joint Broker)
Christian Dennis
Telephone: + 44 (0) 203 137 1903
Yellow Jersey (Financial PR/IR)
Tim Thompson
Telephone: +44 (0) 203 735 8825
This information is provided by RNS
The company news service from the London Stock Exchange
END
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