(TheNewswire)
March 11, 2019 / TheNewswire / Calgary, AB - Zenith
Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; TSX.V: ZEE; OSE: ZENA-ME) the listed international oil & gas production company
operating the largest onshore oilfield in Azerbaijan, is pleased to announce that it has successfully
renegotiated the US$1,500,000 convertible loan facility (the "Facility") announced
on September 5, 2018.
As announced on January 7, 2019, the total outstanding liability in relation to the Facility
currently stands at US$1,050,000 (approximately £825,000; CAD$1.4 million; NOK 9 million).
The Company has agreed with the consortium of lenders (the "Lenders") that the terms of the Facility shall be amended to include the possibility of optional
redemptions (the "Optional Redemption") to be made by the Company in lieu of
conversion of the Facility by the Lenders for set redemption amounts (the "Redemption
Amounts") amortised across the duration of the Facility.
In addition, provided prior notification is given by the Company to the Lenders regarding its
intention to either pay the Optional Redemption or confirm that the applicable Redemption Amounts may be converted, conversion of
the Redemption Amounts may only be effected by the Lenders at a fixed conversion price of GBP0.0505 (approximately CAD$0.088; NOK
0.57) (the "Fixed Conversion Price").
Furthermore, the Company and the Lenders have agreed to extend the repayment date of the Facility to
May 31, 2020.
Andrea Cattaneo, Chief Executive Officer, commented:
"We are very pleased to have obtained a favourable renegotiation of the Facility, and I take the
chance to thank our Lenders for their support.
The Board of Directors is strongly of the view that the beginning of the Company's highly
prospective well deepening programme in Azerbaijan will generate many catalysts for the creation of shareholder value. It has
therefore decided to take all possible steps to avoid unnecessary equity dilution that may impinge on the appreciation of the
Company's market value during this time."
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the
policies of TSXV) accepts responsibility for the adequacy of this release.
Further Information:
Zenith Energy Ltd
Andrea Cattaneo
Chief Executive Officer
E-mail: info@zenithenergy.ca
Tel: +1 (587) 315 9031
Optiva Securities - Broker
Christian Dennis
Jonathan Brown
Tel: + 44 (0) 203 981 4179
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, 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 8, 2018 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
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, 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.
Copyright (c) 2019 TheNewswire - All rights reserved.