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) £10,125 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 £0.12 (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 €401k (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 £2,166,898 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: [email protected]
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.
