TIDMZEN
RNS Number : 1890V
Zenith Energy Ltd
01 November 2017
November 1, 2017
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 ("MAR").
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Commitment letter signed for new generation, automated hydraulic
drilling rig, and Announcement of Total Voting Rights
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 it has signed a commitment letter with
Olieum Services WLL ("Olieum"), an integrated oilfield services and
equipment joint venture based in Bahrain, for the procurement of a
Genesis BQ500 onshore drilling rig. Olieum has worked closely with
the Company to structure a unique lease arrangement that aligns
Zenith's targeted growth plans and cash flows with its future
equipment requirements.
The Genesis BQ500 is the latest generation, automated onshore
hydraulic drilling rig to be manufactured by B Robotics W S.R.L, a
founding partner in Olieum, and a leading Italian oil and gas
innovation company specialising in the design and manufacture of
advanced oil and gas drilling equipment. The rig is expected to
deliver enhanced automation, efficiency and safety to the Company's
drilling operations, whilst driving down costs and
time-to-production. This has largely been achieved through
extensive research and development in modular rig design, and in
key components including the monkey board, slips, lay-up and down
machine, pipe containers, roughneck, subs and bits loader, and all
the working floor tools.
Manufacturing of the Genesis BQ500 is scheduled to begin upon
the fulfilment of the preliminary conditions detailed in the
commitment letter. This is expected to take place in Quarter 4,
2017, with delivery anticipated in the second half of 2018.
Andrea Cattaneo, Chief Executive Officer of Zenith,
commented:
"I am very excited about our new partnership with B Robotics W.
The BQ500 Genesis rig is an extremely impressive piece of
machinery, offering a unique mix of technological innovation,
reliability and efficiency.
Zenith is strategically committed to operational independence
and strong profitability, even in a low oil price environment. Our
development drilling campaign, which we expect to begin in 2018,
will play a transformational role in Zenith's journey towards
achieving its objective of mid-tier market capitalisation. Indeed,
the recent strengthening in oil prices will, if sustained, further
maximise the profitability of our systematic field development
activities. It should also be noted that the ever-present risk of
third-party delays negatively impacting our operations will be
greatly mitigated by operating our own rig.
We know that our field in Azerbaijan has very significant
quantities of oil, with independently assessed 2P reserves of 32.1
million barrels of oil, and our intention is to produce as much oil
as possible in full safety. The advanced automated features of the
BQ500, as well as its energy efficiency, will not only reduce our
drilling expenses, but also make our operations faster and, at the
same time, safer, by significantly reducing the margin for human
error.
Direct collaboration with the manufacturer, especially in the
design phase before the rig is produced, will allow Zenith's
operational team to provide detailed input regarding our technical
requirements, ensuring that the rig is designed to our
specifications.
I look forward to updating the market when construction of the
rig begins."
Walter Bagassi, Chief Executive Officer of B Robotics W, and
Director, Olieum Services WLL, commented:
"We are very pleased to have the opportunity to work with Zenith
Energy. In today's marketplace, increasing productivity is the key
to success. Our fully automated drilling rigs provide many safety
and cost-saving advantages over traditional rigs, to increase a
company's competitiveness and its bottom line. Incredibly, no
significant technological advances have happened since 1923, when
drilling moved from percussion to rotary - the development in
drilling rig manufacturing has been static for 94 years."
Abdulaziz Alshammary, Director, Olieum Services WLL,
commented:
"Our integrated oilfield services and equipment value chain
allows us to easily integrate with the needs of national and
international oil companies, operators and contractors. We packaged
a bespoke equipment and financial arrangement with Zenith, suited
to their particular requirements in Azerbaijan. We look forward to
exploring synergies with Zenith to create further value for all
stakeholders."
Total Voting Rights ("TVR")
The Company wishes to announce, in accordance with the Financial
Conduct Authority's Disclosure Guidance and Transparency Rules, the
following information as at November 1, 2017. The issued ordinary
share capital of the Company at the date of this announcement
consists of 133,787,977 common shares in issue and admitted to
trading on the Main Market of the London Stock Exchange.
The above figure 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 change to
their interest in, the share capital of the Company under the
Financial Conduct Authority's Disclosure Guidance and Transparency
Rules.
For further information, please contact:
Zenith Energy Ltd.
Andrea Cattaneo
Chief Executive Officer
Email: info@zenithenergy.ca
Telephone: +1 (587) 315 9031
Telefax: +1 (403) 775 4474
Optiva Securities - (Joint Broker)
Christian Dennis
Telephone: + 44 (0) 203 137 1903
Beaufort Securities Limited - (Joint Broker)
Jon Belliss
Telephone: +44 207 382 8300
Allenby Capital Limited - (Financial Adviser)
Nick Harriss
Nick Athanas
Telephone: + 44 (0) 203 328 5656
Yellow Jersey (Financial PR/IR)
Tim Thompson
Telephone: +44 (0) 203 735 8825
This information is provided by RNS
The company news service from the London Stock Exchange
END
DRLGGBDBXDGBGRB
(END) Dow Jones Newswires
November 01, 2017 03:00 ET (07:00 GMT)
Zenith Energy (LSE:ZEN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Zenith Energy (LSE:ZEN)
Historical Stock Chart
From Apr 2023 to Apr 2024
