(Alliance News) - Zenith Energy Ltd is looking to issue up to 75.0 million new shares to a selection of high net-worth private investors to raise gross proceeds of up to GBP525,000.
Zenith said the shares will be issued at 0.7 pence each. Shares closed 1.3% lower in London on Monday at 0.74p each.
The proceeds of the private placement, Zenith said, will be used to provide increased funding for the development of its production portfolio, business development expenses for the identification of new oil & gas production assets, as well as for general working capital purposes.
The private placement follows a USD2 million investment signed last Tuesday from an Arab consortium of strategic institutional investors focused on African development projects.
That investment is contingent on Zenith completing acquisitions currently under negotiation.
Among the acquisitions currently being pursued by Zenith include an 80% stake in Anglo African Oil & Gas PLC's Congo business, the operator of the Tilapia oilfield in the Republic of the Congo; an oil production asset in West Africa; an interest in an onshore oil production asset in Tunisia; and the Italian portfolio of Coro Energy PLC.
Following the completion of these deals, Zenith expects daily production will rise above 1,500 barrels of oil per day.
By Paul McGowan; paulmcgowan@alliancenews.com
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Zenith Energy (ZEN)