11th Feb 2020 14:53
(Alliance News) - Zenith Energy Ltd on Tuesday said it has issued four notes under its EUR25 million medium term notes programme and added that it will be one of Italy's leading gas producers when it completes the acquisition of a portfolio owned by Coro Energy PLC.
Shares in the company were 10% higher at 1.60 pence each in London on Tuesday afternoon.
Zenith has issued unsecured euro, sterling, dollar and swiss franc denominated notes.
The EUR1.0 million notes have a 10.125% annual interest rate, its GBP1.0 million notes bear 10.50% yearly interest, and the USD1.0 million notes have an 10.375% annual interest rate. Zenith's CHF1.0 million notes, worth about GBP789,349, carry an annual interest rate of 10.00%.
The company added: "The distribution of the notes is currently ongoing across a number of markets. It is expected that the dollar notes will shortly be the first fully subscribed series of notes."
The issue is part of its EUR25.0 million medium term notes programme, which it announced in November. They will be due on January 27, 2024.
The notes can be issued in tranches at Zenith's discretion at no more than EUR25.0 million, and in any currency including the euro, Canadian dollar, pound, US dollar and Swiss franc.
Zenith in December struck an agreement to buy Coro Energy's entire Italian gas portfolio for GBP3.9 million.
"Upon completion of the Italian Acquisition once the necessary approvals have been obtained, Zenith will be positioned as one of Italy's leading natural gas producers," the company said.
The company also reported that it has completed "a number of visits" to the Republic of Congo, where it is looking to secure an 80% interest in the operator of the Tilapia oilfield.
Operator Anglo African Oil & Gas PLC has a 56% stake in the asset.
"Zenith has met with the relevant authorities to discuss the renewal of the License for a new 25-year term, as well as developing an understanding of the required signature bonus amount," Zenith added.
By Eric Cunha; [email protected]
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