TIDMZEN
RNS Number : 9521K
Zenith Energy Ltd
16 April 2018
April 16, 2018
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"). Upon
publication of this announcement via a regulatory information
service ("RIS"), the inside information contained in this document
is now considered to be in the public domain.
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Update on Proposed Acquisition in Indonesia
Zenith Energy Ltd., ("Zenith" or the "Company"), (LSE: ZEN;
TSX.V: ZEE), the international oil & gas production company
operating the largest onshore oilfield in Azerbaijan, is pleased to
provide an update regarding its progress on the possible
acquisition of an oil production asset located in Indonesia (the
"Proposed Acquisition"). The Company announced on March 28, 2018,
that it had entered into an exclusivity and a binding option to
purchase agreement (the "Agreement") for the Proposed
Acquisition.
Due Diligence on the Proposed Acquisition (the "Due
Diligence")
The Due Diligence encompasses an evaluation of the legal,
accounting, petroleum and fiscal aspects of the Proposed
Acquisition. The Company announced on March 28, 2018, that it had
until April 30, 2018 to undertake its Due Diligence on the Proposed
Acquisition. Zenith can today announce that the Due Diligence is
underway and that, in agreement with the vendor, it has extended
the completion deadline for the Due Diligence to May 15, 2018.
After completing the Due Diligence, the Company has a period of
15 days to choose to exercise the binding option to complete the
Proposed Acquisition (the "Option") for a total consideration of
US$6,600,000 (the "Consideration"). The Consideration shall be
payable as to 50 per cent., (US$3,300,000), within 7 business days
of exercising the Option (the "First Payment"), and the balance,
(US$3,300,000), payable by the deadline of August 31, 2018.
The Company will provide an update regarding the progress of the
Proposed Acquisition once the Due Diligence has been completed. The
Proposed Acquisition remains at an early stage and there can be no
guarantee that it will be successfully completed. Completion of the
Proposed Acquisition remains conditional on, inter alia,
satisfactory completion of the Due Diligence, the entering into a
share purchase agreement and financing of the Consideration.
Completion of the Proposed Acquisition may be subject to
regulatory approval from the TSXV.
Down-payment of US$100,000 (the "Deposit")
Andrea Cattaneo, Chief Executive Officer and President of the
Company, has advised Zenith that the Deposit has been paid in full.
The Company had announced on March 28, 2018, that Mr Cattaneo had
agreed to make a down payment of US$100,000 by April 15, 2018. If
the Company exercises the Option, then the Deposit will be offset
against the First Payment, and the Company will reimburse Mr
Cattaneo the US$100,000. In the event that during the Due Diligence
the Company finds negative discrepancies greater than 5% of the
book values stated in the Proposed Acquisition's financial
statements dated February 28, 2018, then the Deposit shall be
refunded to Mr Cattaneo. If the Company decides not to exercise the
Option for any other reason during the Due Diligence, then Mr
Cattaneo will forfeit the Deposit.
For further information please contact:
Zenith Energy Ltd.
Andrea Cattaneo
Chief Executive Officer
E-mail: info@zenithenergy.ca
Tel: +1 (587) 315 9031
Vigo Communications - PR Adviser
Patrick d'Ancona
Chris McMahon
Kate Rogucheva
Tel: +44 (0) 20 7830 9700
Daniel Stewart & Company Plc - (Joint Broker)
Robert Emmet- Corporate Broking
Nikhil Varghese- Corporate Finance
Tel: + 44 (0) 207 776 6550
Optiva Securities - (Joint Broker)
Christian Dennis
Tel: + 44 (0) 203 137 1903
Allenby Capital Limited - (Financial Adviser)
Nick Harriss
Nick Athanas
Tel: + 44 (0) 203 328 5656
Notes to Editors:
Zenith Energy Ltd. is an international oil and gas production
company, dual listed on the Toronto Stock Exchange and London Stock
Exchange.
The Company operates the largest onshore oilfield in Azerbaijan
following the signing of a 25-year REDPSA, (Rehabilitation,
Exploration, Development and Production Sharing Agreement), with
SOCAR, State Oil Company of the Azerbaijan Republic, in 2016.
The Company's primary focus is the development of its Azerbaijan
operations by leveraging its technical expertise and financial
resources to maximise low-cost oil production via a systematic
field rehabilitation programme intended to achieve significantly
increased revenue. Zenith also operates, or has working interests
in, a number of natural gas production concessions in Italy. The
Company's Italian operations produce natural gas, natural gas
condensate and electricity.
Zenith's development strategy is to identify and rapidly seize
value-accretive hydrocarbon production opportunities in the onshore
oil & gas sector. The Company's Board of Directors and senior
management team have the experience and technical expertise to
develop the Company successfully.
To find out more, visit www.zenithenergy.ca or follow Zenith on
Twitter @zenithenergyltd
This information is provided by RNS
The company news service from the London Stock Exchange
END
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