Source - RNS
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.




Zoltav Resources Inc.

Tel. +44 (0)20 7830 9704

Alastair Ferguson, Executive Chairman

(via Vigo Communications)

Shore Capital (Nomad and Joint Broker)

Tel. +44 (0)20 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

[email protected]


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.

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