Zenith Energy (LON:ZEN; TSX.V: ZEE; OSE: ZENA-ME), the international oil & gas production company operating the largest onshore oilfield in Azerbaijan, announced a Private Placement on the Merkur Market of the Oslo Stock Exchange.
The Company has successfully raised gross proceeds of NOK 6,133,000 (approximately £518,000 or CAD$880,000) to subscribe for 17,522,857 common shares of no par value in the capital of the Company at a price of NOK 0.35 per New Common Share (approximately £0.03 or CAD$0.05).
Payment and issue of the New Common Shares to complete the Private Placement is expected on or around October 23, 2019, and an update will be made upon completion.
The Private Placement attracted strong interest and support from Norwegian investors.
Zenith intends to use the net proceeds of the Private Placement to finance the purchase of long lead items and the beginning of civil works required in preparation for planned drilling operations at well M-247 of the Muradkhanli oilfield, as well as for additional general working capital.
The Private Placement is subject to approval from the TSX Venture Exchange and the Oslo Stock Exchange.
Andrea Cattaneo, Chief Executive Officer of Zenith Energy, commented:
“The Board of Directors is pleased that we have successfully completed our first Private Placement in Norway following Zenith’s listing on the Merkur Market last year.
The Norwegian market has proven extremely favourable for the Company in recent months as we have delivered the first results of our drilling activities, and I am delighted that many existing and new Norwegian investors participated in the Private Placement.
We look forward to the commencement of drilling operations at well C-30 in due course.”