Zoltav Resources Inc Trading Statement & Directorate Changes (1375J)
September 07 2016 - 2:01AM
UK Regulatory
TIDMZOL
RNS Number : 1375J
Zoltav Resources Inc
07 September 2016
Embargoed: 0700hrs 7 September 2016
Zoltav Resources Inc.
("Zoltav" or the "Company")
Trading Statement
Update on Corporate Strategy
& Directorate Changes
Zoltav (AIM: ZOL), the Russia-focused oil and gas exploration
and production company, provides an update on corporate and
strategic developments ahead of the Company's Annual General
Meeting ("AGM") scheduled to take place later today.
Zoltav's core strategic objective remains that of extracting the
maximum value from the Company's existing assets. Accordingly, the
Company is pleased to announce that management's efforts on driving
operational performance, coupled with an ongoing programme of cost
optimisation at an operating and administrative level, are paying
off and the Board now expects a profit before tax for the current
financial year ending 31 December 2016 which is materially ahead of
market expectations.
The Company looks forward to providing a detailed update on
operations and trading in the current financial year with the
publication of the half-yearly report on 26 September 2016.
In parallel with the Company's focus on organic growth, Zoltav
has been actively assessing value accretive acquisitions in Russia
and the wider CIS. This search has not, to date, yielded any
prospects which the Board considers to be in the best interests of
the shareholders. It remains challenging in the current oil and gas
environment to access deals that are sufficiently value accretive
for shareholders, as sellers are yet to materially adjust their
expectations. While this market dynamic persists, the Board has
resolved to concentrate the Company's efforts solely on the
performance of the Western Gas Plant and on the development of its
organic opportunities at Koltogor and Bortovoy - particularly the
considerable resource in the Eastern Fields of Bortovoy, where the
Company is working to understand better the feasibility and
economic viability of the development options.
In light of the Company's sole focus on existing assets and
organic opportunities, the Board, in consultation with Zoltav's
major shareholders, has resolved to restructure its composition
from six directors to three, commensurate with the current size of
Zoltav's business. The effect will be to significantly reduce the
corporate overhead while maintaining an appropriate level of
corporate oversight, with a Board consisting entirely of three
non-executive directors, the majority of whom are independent of
the Company's major shareholders.
It is the intention of the newly constituted Board that the
executive management function of the Company will, following a
period of transition, be predominantly situated in Saratov, where
Bortovoy and the Company's Western Gas Plant are located. Andrey
Komarov will remain with the Company in a non-board capacity as
chief executive, continuing to oversee, among other things, the
excellent operational progress being made at the Western Gas
Plant.
Accordingly, in addition to Stephen Lowden (Senior Independent
Non-executive Director) whose intention not to stand for
re-election at the forthcoming AGM was announced by the Company on
12 August 2016, Alastair Ferguson (Executive Chairman) and Andrey
Komarov (Executive Director) will not stand for re-election at the
AGM; and all three directors will retire from the Board effective
on completion of the AGM. The resolutions for the re-elections of
Mr Ferguson and Mr Komarov will be withdrawn from the AGM. Zoltav
wishes to thank the retiring directors for their valuable
contributions to the Company.
Subject to their re-election, Marcus Rhodes, an experienced
director of major publicly-listed companies operating in Russia and
the CIS and a qualified chartered accountant and member of the
Institute of Accountants in England & Wales, will become
Non-executive Chairman and Senior Independent Director of the
Company on completion of the AGM, while Alexander Gorodetsky and
Andrey Immel will remain in their roles as Non-executive Directors,
ensuring continuity in the Company's governance. The Audit
Committee and the Nomination and Remuneration Committee will,
effective from completion of the AGM, comprise Marcus Rhodes and
Alexander Gorodetsky, with Marcus Rhodes remaining chairman of the
Audit Committee and Alexander Gorodetsky appointed as chairman of
the Nomination and Remuneration Committee.
Contacts:
Zoltav Resources Inc. Tel. +44 (0)20
7830 9704
Alastair Ferguson, Executive (via Vigo Communications)
Chairman
Shore Capital (Nomad and Tel. +44 (0)20
Joint Broker) 7408 4090
Toby Gibbs or Mark Percy
(Corporate Finance)
Jerry Keen (Corporate Broking)
Panmure Gordon (Joint Broker) Tel. +44 (0)20
7886 2500
Adam James or Tom Salvesen
Vigo Communications Tel. +44 (0)20
7830 9704
Patrick d'Ancona or Ben Simons zoltav@vigocomms.com
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 square kilometre 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,
a processing plant and significant exploration prospectivity. It
holds Proved plus Probable reserves of 750 bcf (21.2 bcm) of gas
and 3.8 mmbbls (488 mT) of oil and condensate. In 2015 the Bortovoy
Licence produced approximately 3.1 mmboe (440 mToe).
Zoltav also holds the Koltogor E&P Licence, a 528 square
kilometre area in the Khantiy-Mansisk Autonomous Okrug of Western
Siberia, one of Russian's most prolific oil producing regions. The
Koltogor E&P Licence contains the Koltogor oil field with
Proved plus Probable reserves of 79.2 mmboe (10.3 mToe).
Additionally, Zoltav holds Koltogor E&P Licence 10, a 167
square kilometre area due west of the Koltogor E&P Licence,
containing the West Koltogor oil field.
For further information on Zoltav or to sign up for our news
alert service visit: www.zoltav.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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