ZEN Zenith Energy Ltd.

TIDMZEN

RNS Number : 0571L

Zenith Energy Ltd

14 July 2017

July 14, 2017

ZENITH ENERGY LTD.

("Zenith" or the "Company")

Zenith issues equity to fund field development

Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; TSX.V: ZEE), the dual listed international oil & gas production company operating the largest onshore oilfield in Azerbaijan, is pleased to announce that the Company has entered into an agreement to proceed with a brokered private placement (the "Private Placement") to raise gross proceeds of GBP 265,000 (approximately CDN$ 437,979) through the issue of 3,533,333 new common shares of no par value in the capital of the Company ("Common Shares") at a price of GBP0.075 (approximately CDN$ 0.123956) per share (the "New Common Shares").

The proceeds of the Private Placement will be used in part to fund the deposit necessary for the Company's acquisition of a new modern workover rig manufactured in China. This workover rig will also be capable of carrying out well completion and will therefore play an important role once the Company's drilling programme commences in making newly drilled wells ready for production.

The Company will make a further announcement once the acquisition of the workover rig is finalised.

The New Common Shares will comprise approximately 3.585% (three point five eight five per cent) of the Company's enlarged issued share capital at the date of the listing to the London Stock Exchange, and are anticipated to be issued as depository interests in CREST in the United Kingdom. An application will be made for the New Common Shares to be admitted to the standard segment of the Official List of the Financial Conduct Authority and to trading on the Main Market for listed securities of the London Stock Exchange (the "Admission") as well as to be listed on the TSX Venture Exchange ("TSXV") in Canada. It is expected that Admission will become effective on July 20, 2017.

Following Admission, the Company's issued share capital will comprise 121,129,813 Common Shares with one voting right per share. No shares are held in Treasury. The total number of voting rights in the Company will therefore be 121,129,813.

This figure of 121,129,813 Common Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company.

The transaction is subject to the approval of the TSXV in Canada and Admission.

Andrea Cattaneo, Chief Executive Officer of Zenith, commented:

"The Company has previously stated its intention to acquire a more powerful, modern workover rig. The proceeds of the placement will enable the Company to pay the required deposit for this acquisition without depleting the Company's cash reserves.

The remaining proceeds of the Placement will be allocated towards our field rehabilitation and development programme in Azerbaijan.

The purchase of this workover rig will give Zenith significantly greater flexibility and capabilities in its field rehabilitation activities. It will also decrease the Company's reliance on costly external oil service companies and thereby reduce operational expenditure.

This type of rig will also have the added capability of carrying out well completion and the rig will therefore be particularly valuable when the Company begins drilling activities in 2018.

I look forward to announcing the closing of this acquisition in due course."

For further information, please contact:

Zenith Energy Ltd.

José Ramón López-Portillo

Chairman

Andrea Cattaneo

CEO & President

Email: info@zenithenergy.ca

Telephone: +1 (587) 315 9031

   Telefax:       +1 (403) 775 4474 

Allenby Capital Limited - (Joint Broker)

Nick Harriss

Nick Athanas

Richard Short

   Telephone:   + 44 (0) 203 328 5656 

Optiva Securities - (Joint Broker)

Christian Dennis

Telephone: + 44 (0) 203 137 1903

Abchurch (Financial PR/IR)

Tim Thompson

Telephone: +44 (0) 200 7398 7700

This information is provided by RNS

The company news service from the London Stock Exchange

END

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