TIDMZEN
RNS Number : 8151X
Zenith Energy Ltd
15 August 2018
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.
August 15, 2018
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Filing of Quarterly Results
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 the filing of its consolidated quarterly
results for the three months ended June 30, 2018 on SEDAR
(www.sedar.com). A copy of the documents filed on SEDAR can be
accessed on the links below:
http://www.rns-pdf.londonstockexchange.com/rns/8151X_1-2018-8-14.pdf
http://www.rns-pdf.londonstockexchange.com/rns/8151X_2-2018-8-14.pdf
In accordance with Canadian securities laws, filing of the
Company's quarterly results was performed on August 14, 2018. A
copy of these documents will shortly be available for review on the
Company's website: www.zenithenergy.ca.
Highlights for the three months ended June 30, 2018 include the
following:
a) The Group generated revenue from oil and natural gas
production of CAD$1,693k (2017 - CAD$1,540) and CAD$188k from
electricity production (2017 - CAD$127k) during the three months
ended June 30, 2018, representing a 12.8% increase in revenue.
b) The Group sold 23,495 (2017 - 23,390) barrels of oil from its assets in Azerbaijan.
c) The Group sold 1,337 (2017 - 4,790) MCF of natural gas from its Italian production assets.
d) The Group sold 428 (2017 - 223) barrels of condensate from its Italian assets.
e) The Group sold 2,684k (2017 - 2,522k) MWh of electricity from its Italian assets.
f) On April 12, 2018, the Company announced the termination of
the exclusivity agreement (the "Agreement") for the acquisition of
various production and exploration licenses located in a Central
Asian country.
The Agreement was terminated by the Company because it did not
receive the required financial information from the vendor for the
due diligence process to be successfully completed.
g) On April 18, 2018 the Company announced the extension of the
maturity date of the Series A Bond (the "Bond Extension"). The Bond
Extension extends the maturity date for the Series A Bond from May
4, 2018 by six months to November 4, 2018. For the duration of the
Bond Extension the interest rate of the Series A Bond has been
increased to fifteen per cent per annum (15% p.a.). No further
material terms will be amended in the Series A Bond, or in any
other document related to the 2015 Private Placement.
Furthermore, in connection with the work undertaken on the Bond
Extension, Optiva Securities Limited, the Company's joint broker,
was paid a fee consisting of (i) GBP10,125 in cash (CAD$18,141 at
an exchange rate of 1.79167); and (ii) 93,750 common share purchase
warrants ("Warrants"). The Warrants entitle the holder to acquire
one common share per warrant in the capital of the Company at an
exercise price of GBP0.12 (approximately CAD$0.215) until the
expiration date in May 2021.
h) On May 2, 2018, Zenith fully repaid a loan for the total
amount of EUR401k (CAD$637k) that had been used to acquire the
electricity generation equipment installed in the Company's Italian
concession of Torrente Cigno.
i) On May 24, 2018 the Company signed a two-year non-convertible
loan facility, (the "Facility"), for a total amount of up to
US$2,000,000.
The Facility will be used to provide additional funding for the
Group's operations when required. It will be drawn down in
tranches, with each tranche being payable four months from the
drawdown date. It can be settled at any time without penalty and
has no warrants attached.
j) On June 21, 2018, the Company raised gross proceeds amounting
to GBP2,166,898 through a Placing, Subscription and Primary Bid
Offer.
As a result of the Placing, Subscription and Primary Bid Offer
the Company issued a total of 54,172,451 new common shares, (the
"New Common Shares").
The Company also paid finder's fees for CAD$187k and issued
1,280,000 warrants with an exercise price of CAD$0.07 per warrant
that expire three years from the date of granting.
The enlarged issued share capital following Admission is
214,094,217 common shares. The New Common Shares comprise
approximately 25.3 per cent of the enlarged issued share capital on
Admission.
For further information please contact:
Zenith Energy Ltd.
Andrea Cattaneo, Chief Executive Officer
Luca Benedetto, Chief Financial Officer
E-mail: info@zenithenergy.ca
Tel: +1 (587) 315 9031
Vigo Communications - PR Adviser
Patrick d'Ancona
Chris McMahon
Kate Rogucheva
Tel: +44 (0) 20 7830 9700
Daniel Stewart & Company Plc - (Joint Broker)
Robert Emmet- Corporate Broking
Joel Bayley- Corporate Finance
Tel: + 44 (0) 207 776 6550
Optiva Securities - (Joint Broker)
Christian Dennis
Tel: + 44 (0) 203 137 1903
Allenby Capital Limited - (Financial Adviser)
Nick Harriss
Nick Athanas
Tel: + 44 (0) 203 328 5656
Notes to Editors:
Zenith Energy Ltd. is an international oil and gas production
company, dual listed on the TSX Venture Exchange and London Stock
Exchange.
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 Azerbaijan Republic, 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, 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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