4 Sep 2020 13:25
4 September 2020
Zoltav Resources Inc.
("Zoltav" or the "Company")
Update Re. Loan Agreement
Zoltav (AIM: ZOL), the Russia-focused oil and gas exploration and production company, announces that the terms of the loan agreement entered into with ARA Capital Holdings Limited and announced on 14 July 2020 (the "Loan") have been amended so as to extend the final repayment date to 31 December 2020 (the "Loan Extension") (unless otherwise extended or converted into equity by mutual agreement). All other terms of the Loan remain unchanged.
As previously announced, management are continuing to hold discussions with a number of prospective providers of project finance for developing East Bortovoy. In the event the Company takes a positive final investment decision on this project in due course, it is currently envisaged that the Loan would be restructured in order to facilitate any required equity contribution to the project or a part thereof.
ARA Capital Holdings Limited is the parent company of ARA Capital Limited - both entities combined own 44.1 percent of the issued share capital of the Company. ARA Capital Holdings Limited and ARA Holdings Limited are therefore regarded as related parties as defined by the AIM Rules for Companies. The Loan Extension is a related party transaction for the purposes of Rule 13 of the AIM Rules for Companies. The directors of Zoltav consider, having consulted with the Company's nominated adviser, SP Angel Corporate Finance LLP, that the terms of the related party transaction are fair and reasonable as far as shareholders are concerned.
Enquiries:
Zoltav Resources Inc. Lea Verny, Non-executive Chairman
| Tel. +44 (0)20 7390 0234 (via Vigo Communications) |
SP Angel Corporate Finance LLP (Nomad and Joint Broker) John Mackay / Jeff Keating / Soltan Tagiev
| Tel. +44 (0)20 3470 0470 |
Vigo Communications Ben Simons / Simon Woods
| Tel. +44 (0)20 7390 0234 zoltav@vigocomms.com |
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.
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 sq km 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 in the west of the Licence, a processing plant and significant exploration prospectivity. It holds proven plus probable reserves under the Society of Petroleum Engineers' Petroleum Resources Management System of 750 bcf of gas and 3.8 mmbbls of oil and condensate.
In 2018, Zoltav produced 12.0 bcf (341 mmcm) of gas or 2.0 mmboe (274 mtoe) and 66,558 bbls (7,715 t) of oil and condensate.
The Company is currently evaluating strategies to commercialise the eastern fields of the Bortovoy Licence.
For further information on Zoltav, or to sign up for our news alert service, visit: www.zoltav.com.