Zenith Energy say its acquisition of the largest onshore oilfield in Azerbaijan has been “transformational” for the company.
The Canadian operator took on the asset in 2016 and has spent around CAD$900,000 pounds this year in capital expenditure on field rehabilitation and a future development programme.
The company has also signed a contract for the procurement of oil production materials with Kerui Petroleum, a leading Chinese manufacturer of oilfield equipment.
The procurement of this new equipment will enhance Zenith’s operational capabilities, enable the company’s personnel to work in remote field locations, and replenish Zenith’s stock of oil production materials.
The total value of the procurement contract was USD$1,706k (approximately £1,325k; CAD$2,146k).
Zenith chief executive officer, Andrea Cattaneo, said: “These Q2 results confirm the transformational impact of Zenith’s Azerbaijan acquisition on the Company’s financial position.
“I look forward to announcing increased production revenue in the next set of quarterly results as we achieve further growth in our daily production of oil.”