ZOL.L Regulatory News (ZOL)

17 May 2018

Zoltav Resources Inc.

("Zoltav" or the "Company")

Senior Technical Appointments

Zoltav (AIM:ZOL), the Russia-focused oil and gas exploration and production company, is pleased to announce the strengthening of its technical team with the appointments of former Bashneft and TNK-BP technical executives, Yuri Krasnevsky, as Director for Geology and Field Development, Andrei Zabolotnov, as Deputy Director for Field Development, and Vasily Fomichev, as Deputy Director for Geology.

These senior appointments have been made in support of 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. An exploration programme to assess these structures began in 2017 with a substantial and ongoing 3D seismic acquisition programme, which the Company anticipates will allow for the positioning and drilling of the first Devonian exploration well on the North Mokrous area of the Mokrousovskoye block in due course.

Mr Krasnevsky has over 30 years of experience in geological exploration and production in Russia. He has held senior technical positions with a number of major energy businesses including most recently with NK Novyi Potok and Bashneft, prior to which Mr Krasnevsky worked at both TNK-BP and Rosneft. As Vice President for Geology and Field Development at Bashneft, Mr Krasnevsky gained significant geological experience in carbonate and terrigenous rocks of Carboniferous and Devonian formations in the Bashkortostan and Orenburg regions. He also was involved in the exploration and development of Devonian carbonates on the Trebs and Titov oil fields in the Nenets Autonomous Okrug which were highly successful for Bashneft. Mr Krasnevsky is a graduate of the Gomel State University and has a degree in geological engineering and hydrogeology.

As Director for Geology and Field Development, Mr Krasnevsky will oversee the further development of Zoltav's assets, which includes planning and execution of seismic work, drilling, and the verification of new reserves and resources.

Mr Zabolotnov has been involved in field development for over 27 years, having held senior technical and leadership roles with major energy companies, including with Bashneft. During his time at Bashneft, Mr Zabolotnov successfully positioned multiple horizontal wells which resulted in a significant increase in oil production. Most recently, as Head of Field Development Division at NK Novyi Potok, Mr Zabolotnov prepared three oil and gas fields in the Orenburg region for commercial production. Mr Zabolotnov is a graduate of the Tyumen Industrial University, with a specialisation in technology and complex mechanisation of oil and gas fields.

As Deputy Director for Field Development, Mr Zabolotnov will be in charge of supervising all stages of future development programmes from planning and budgeting to overseeing operations. He also will be focused on the efficiency of the fields currently in production at Bortovoy.

Mr Fomichev is a geologist with over 35 years of experience in mining and exploration. He previously held the roles of Head of Geology Division for NK Novyi Potok and Deputy Director of the Geologic Exploration and Licensing Department for Bashneft. Mr Fomichev has prepared geological models and reserve evaluations for the Chinarevskoye field in West Kazakhstan, which is considered to have similar geological characteristics to Bortovoy. Mr Fomichev holds a Bachelor's Degree in geology and mineral deposits prospecting from Krasnoyarsk Institute of Nonferrous Metals.

As Deputy Director for Geology, Mr Fomichev will be responsible for maintaining the Company's full-cycle evaluation of E&P projects from exploration to development. This will include the supervision and evaluation of geological mapping, delineation of reservoirs, participation in volumetric and reserve estimations and the provision of geoscience support.

Eduard Sleyn, Chief Executive Officer, commented:

"Zoltav's commitment to enhancing the value of its significant Bortovoy asset through exploration is evident in the appointments of these highly accomplished former Bashneft and TNK-BP technical executives, led by Yuri Krasnevsky. Their combined experience will be invaluable to Zoltav as we assess the resource potential of the deeper Carbonian and Devonian structures in the Western Fields of the licence; and develop any assets which we may acquire in the future. We welcome them to the team as we advance through this exciting new phase for the Company."

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.

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