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Zeta Petroleum Launches Option Issue

Zeta Petroleum (ASX: ZTA) has launched a pro-rata non-renounceable rights issue of loyalty options to raise A$333,406 for working capital.

The Romania-focused company is offering one loyalty option for every four shares or CHESS Depositary Interests held at an issue price of $0.01 each. The loyalty options are exercisable at $0.30 on or before 15 July 2015.

Zeta is currently fully funded for the next stage of its exploration program with a cash position of about $4 million, as well as income from its producing Romanian asset.

The exploration program will include a well targeting oil on the Jimbolia concession, where Zeta has a 39% interest and is fully carried by farm-in partner Serbia-based NIS Gazprom Neft, which is majority owned by Russia's Gazprom - the largest gas producer in the world.

NIS will fund 100% of the cost of the next exploration well and payment of contingent cash amounts to Zeta for its 51% operating stake.

Additionally, a well on the Suceava concession, targeting shallow gas, where Zeta has a 50% interest is also planned for the December quarter 2012, as well as additional evaluation work on the Bobocu Gas Field.

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