logo-loader
viewZeta Petroleum PLC

Zeta Petroleum acquiring producing oil and gas assets in Russia

au_russia__358_53433e8d87a23.jpg

Zeta Petroleum (ASX: ZTA) has signed a non-binding term sheet to acquire private company Stikito Ltd. which has a 100% owned interest in four oil and gas production and exploration licences in the prolific Volga Urals basin, Russia.

The licences making up the 280 square kilometre VES Project currently produce about 220 barrels of oil per day and estimated proved and probable reserves of 12.8 million barrels of oil equivalent as of 2012.

Zeta will pay US$2 million in cash within 15 days of signing a binding legal agreement and issue 155 million shares priced at $0.05 each.

Should the assets maintain average oil production in excess of 220bopd for 90 days, the company will also pay the vendor an addition US$1 million.

VES is located close to the supergiant Orenburg field, and the world class Karachaganak field.

It offers development potential including low cost workovers of existing wellbores and high impact drilling to new horizons.

In order to fund the initial upfront acquisition cost, Zeta has signed a heads of terms with an existing shareholder for a US$2 million convertible loan, with 50% of the loan convertible at $0.01 per share and 50% of the loan convertible at the lower of $0.03 and the average 30 day share price prior to conversion.

In addition, the lender will be granted 10 million share options with an exercise price of $0.05 for a period of 3 years.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

Quick facts: Zeta Petroleum PLC

Price: - -

ASX:ZTA
Market: ASX
Market Cap: -
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Animoca Brands' Yat Siu talks significant expansion of partnership with Atari

Animoca Brands Corporation Ltd's co-founder and chairman Yat Siu speaks to Proactive about an expansion to its existing license deal with classic gaming company Atari. The move gives Animoca access to an additional 15 Atari games through to 2035 as well as the right to develop and publish...

10 hours, 57 minutes ago

2 min read