London Stock Exchange welcomes Zenith Energy Ltd to the Main Market

London Stock Exchange welcomes Zenith Energy Ltd to the Main Market

London Stock Exchange welcomed Zenith Energy Ltd., an oil & gas company operating the largest onshore oil field of Azerbaijan, to admission to the standard listing segment of the FCA Official List and trading of its shares on London Stock Exchange's Main Market under the ticker symbol ‘ZEN’.

Zenith Energy is now dual listed, following its incorporation and trading in Canada on the TSX Venture Exchange (TSXV) with the ticker ‘ZEE’.

The Company has activities across three continents with oil fields in Argentina, stable production of electricity, gas and condensate in Italy, and the largest onshore oil field in Azerbaijan in a joint venture with the State Oil Company of the Azerbaijan Republic (SOCAR). 

The placing successfully raised £2,332,550 before expenses via the issue of 33,322,143 Common Shares at the placing price of £0.07 per share. The net proceeds of the UK Placing are £2,015,922.

The net proceeds of the placing will provide funding for the rehabilitation and development programme in Azerbaijan; funding for CAPEX driven improvements at its operations in Italy and Argentina; allow the Company to reduce its existing third party debt; and provide additional working capital.

Andrea Cattaneo, CEO of Zenith, stated:

"We are very pleased to have successfully completed Zenith’s admission to trading on the LSE’s Main market. The timing of this admission is favourable as the price of crude oil has reached levels not seen for more than a year since Zenith entered into a ‘Rehabilitation, Exploration, Development and Production Sharing Agreement’ (REDPSA) in joint venture with the State Oil Company of the Azerbaijan Republic (SOCAR) for the largest onshore oil field of Azerbaijan. This acquisition, Zenith’s most recent and significant, has been made possible by the Company’s successful operational track record in Italy and Argentina, as well as the Board’s strong relationship with SOCAR. 

Zenith is significantly undervalued. This is evident in the fact that Zenith’s independently assessed 2P oil reserves for its contract area in Azerbaijan have been assessed at US$ 1.984bn undiscounted whilst Zenith’s market cap at the time of admission is approximately £9 million. In addition, one should also consider the significant and consistent cash flow already being generated in Azerbaijan at present levels of oil production. 

My chief priority as CEO is to enhance shareholder value and oversee the successful expansion of the Company. I am grateful to the London Stock Exchange for approving Zenith’s application – the vitality and liquidity of this exchange can be seen in the number of Zenith shares traded since admission. Listing on London Stock Exchange will provide added momentum to the Company’s expansion and reward the confidence of Zenith investors."

The Chairman of Zenith Energy, José Ramón Lopez- Portillo, stated:

"the key message that is made clear here today is that of opportunity. The Company can now look forward with confidence to a successful future of expansion and consolidation."