Zoltav completes first major asset acquisition

4th Jul 2013 09:29

Oil and gas company Zoltav has completed its first major asset acquisition of the Koltogorsky Licence, in Western Siberia.Koltogorsky, located in the in the Khantiy-Mansisk Autonomous Okrug, contains probable oil reserves of 76.53m barrels. The company said it plans to acquire up to 500 square kilometres of 3D seismic during the winter season 2013/2014 period in order to "better understand the characteristics of the field and to identify optimal locations for appraisal wells". The initial appraisal drilling programme in 2015/16 is expected to comprise up to four wells. Zoltav intends to commence test production next year by reopening the 141 well.The firm also announced it has entered into an agreement to allow ARA Capital to subscribe for shares in the capital of the company with an aggregate value of $20m at a subscription price of 70p per share. The group has received its first tranche of the subscription, totalling $13m for the issue of 11.82m new ordinary shares to ARA Capital.Following receipt of the full subscription, due next April, a total of 18.19m new ordinary shares will be issued to ARA Capital. ARA Capital is also interested in a further 21.36m new ordinary shares, equivalent to 38.6% of the firm's issued share capital.Shares in Zoltav rose 0.73% to 137.50p at 09:51 on Thursday.RD