TIDMZEN
RNS Number : 9366Q
Zenith Energy Ltd
24 October 2019
October 24, 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 with a specific focus on the elimination
of all short-term debt positions.
Loan Facility for US$1,485,000 and accrued interest
The Company can today confirm that it has repaid the first
tranche of the settlement of this liability.
As announced on September 17, 2019, the Company entered
negotiations with the lender to settle the liability at a
significant discount.
On October 1, 2019, the Company announced that, following
negotiations with the lender, it had successfully agreed to settle
the aforementioned liability for a total amount of US$1,000,000,
representing a profit of US$1,080,523.
Unsecured notes for GBP90,000 and accrued interest
On March 25, 2019, Zenith issued unsecured notes for a total
amount of GBP90,000.
The Company can today confirm that it successfully repaid the
unsecured notes for GBP90,000, with related accrued interest.
Conversions under Convertible Loan Facility
The Company has received three Conversion Notices ("Conversion")
from the consortium of lenders (the "Lenders") for the US$1,500,000
Convertible Loan Facility ("Convertible Loan") announced on
September 5, 2018.
The Conversion has been made in three different tranches during
the months of September 2019 and October 2019:
1. 2,666,935 common shares ("Conversion Shares") at a price of GBP0.0305 per Conversion Share;
2. 3,702,263 Conversion Shares at a price of GBP0.0221 per Conversion Share; and
3. 5,055,204 Conversion Shares at a price of GBP0.0221 per Conversion Share,
for a total of 11,421,402 Conversion Shares, equivalent to a
total amount of US$340,000.
The total outstanding liability in relation to the Convertible
Loan will now stand at US$420,000 following the completion of the
Convertible Loan Facility and the Conversion.
On March 11, 2019, the Company announced that it had favourably
renegotiated the Convertible Loan to include a fixed conversion
price of GBP0.0505 ("Fixed Conversion Price") for the Convertible
Loan Facility which expired on September 1, 2019.
The Company also announced that it had agreed with the Lenders
to amend the terms of the Convertible Loan to include the
possibility of optional redemptions (the "Optional Redemption") to
be made by the Company in lieu of conversion of the Convertible
Loan by the Lenders for set redemption amounts (the "Redemption
Amounts") amortised across the duration of the Facility.
Zenith has paid a total of US$600,000 in Optional Redemptions to
reduce the total outstanding liability in relation to the
Convertible since the aforementioned revised terms were agreed.
Admission of Conversion Shares
An application will be made for 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 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 30, 2019.
Total Voting Rights
The Company wishes to announce, in accordance with the Financial
Conduct Authority's Disclosure Guidance and Transparency Rules, the
information set out below following the completion of a Private
Placement in Norway last announced on October 22, 2019 and the
aforementioned Conversions.
Class of share Total number of Number Total number of
shares of voting voting rights
rights per class of share
per 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 407,566,366 1 407,566,366
------------------ ------------ ---------------------
Common Shares in
issue and admitted
to trading on the
Merkur Market of
the Oslo Børs 407,566,366 1 407,566,366
------------------ ------------ ---------------------
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.
Andrea Cattaneo, Chief Executive Officer of Zenith,
commented:
"In line with our key strategy of further strengthening our
financial position we have taken targeted steps to significantly
improve our balance sheet in recent months
It is important to underline that the Company made an
exceptional profit of US$1,080,523 from the successful settlement
at a sizeable discount of a Loan Facility.
We look forward to building upon this progress in due course in
order to support Zenith's successful development."
Further Information:
Zenith Energy Ltd
Andrea Cattaneo, Chief Executive Tel: +1 (587) 315 9031
Officer
-----------------------------
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) 207 399
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.
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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