ZOL.L Regulatory News (ZOL)

17 January 2018

Zoltav Resources Inc.

("Zoltav" or the "Company")

 Operations Update

Zoltav (AIM: ZOL), the Russia-focused oil and gas exploration and production company, is pleased to provide an update on the Company's exploration programme to assess the resource potential of the Carbonian and Devonian structures in the Western Fields of the Bortovoy Licence, Saratov.

As previously stated, Zoltav believes there is potential to yield substantial additional reserves and production from the Carbonian and Devonian horizons which, if proven, would have a transformational impact on the size of the Bortovoy asset. The availability of modern seismic imaging, drilling and production technologies has enabled the Company to develop a work programme targetting these deeper structures which lie approximately 3,500-5,000 m below surface.

The final interpretation report for 180 sq km of 3D seismic acquired last year over the Carbonian and Devonian (and also prospective Permian) structures in the North Mokrous block is expected to be completed by March 2018 and will enable the Company to optimally position future wells. The 3D seismic data acquired over this area will also contribute to the development in due course of a new drilling plan for the shallower Permian basin, from which Zoltav is currently producing, with the objective of restoring the Western Gas Plant to full capacity.

In addition to the 180 sq km of 3D seismic acquired in 2017, Zoltav has initiated the acquisition of a further 316 sq km of 3D seismic over the Mokrous block, located in the eastern part of the Western Fields of the Bortovoy Licence, approximately 30 km east of the Karpenskoye field from which the Company is currently producing. The 3D seismic field work from this phase is expected to be completed by October 2018 and the area of coverage may be extended thereafter.

Zoltav is in the process of recruiting an upstream team with significant geological and technical experience in Carbonian and Devonian structures to support the next phase of the work programme and, if successful, the commercialisation of this horizon. A further announcement will be made in due course.

Eduard Sleyn, Chief Executive Officer, commented:

"The availability of modern 3D seismic imaging, drilling and production technologies is enabling the Company to explore the deeper Carbonian and Devonian structures which, if proven, could have a transformational impact on the Company's reserves. After much planning, and the acquisition of 180 sq km of 3D seismic last year, Zoltav is pleased to have commenced the next phase of the seismic programme aimed at assessing the potential of these horizons. We look forward to providing further updates in due course."

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

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About Zoltav

Zoltav is an oil and gas exploration and production company focused on Russia.

Zoltav holds the Bortovoy Licence in the Saratov region of South Western Russia, a 3,215 square kilometre area along the northern margin of the Pre-Caspian basin, one of the largest hydrocarbon basins in the CIS.

The Bortovoy Licence contains a number of productive gas fields, a processing plant and significant exploration prospectivity. It holds Proved plus Probable reserves of 750 bcf (21.3 bcm) of gas and 3.8 mmbbls (484 mT) of oil and condensate. In 2016, the Bortovoy Licence produced approximately 3.3 mmboe (450 mToe).

Zoltav also holds the Koltogor E&P Licence, a 528 square kilometre area in the Khantiy-Mansisk Autonomous Okrug of Western Siberia, one of Russian's most prolific oil producing regions. The Koltogor E&P Licence contains the Koltogor oil field with Proved plus Probable reserves of 79.2 mmboe (10.8 mToe). Additionally, Zoltav holds Koltogor E&P Licence 10, a 167 square kilometre area due west of the Koltogor E&P Licence, containing the West Koltogor oil field.

For further information on Zoltav or to sign up for our news alert service visit: www.zoltav.com.