TIDMZEN
RNS Number : 3267Q
Zenith Energy Ltd
18 February 2019
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.
February 18, 2019
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Filing of Quarterly Results and Operational Update
Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; TSX.V:
ZEE; OSE: ZENA-ME) the listed international oil & gas
production company operating the largest onshore oilfield in
Azerbaijan, is pleased to announce the filing of its consolidated
quarterly results for the nine months ended December 31, 2018 on
SEDAR (www.sedar.com).
In accordance with Canadian securities laws, filing of the
Company's quarterly results was performed on February 14, 2019. A
copy of these documents will shortly be available for review on the
Company's website: www.zenithenergy.ca.
Highlights for the nine months ended December 31, 2018 include
the following:
-- The Group generated revenues from oil and natural gas of
CAD$5,205k and CAD$478k from electricity in the nine months ended
December 31, 2018, representing an increase of 30% in consolidated
total revenues over the corresponding period of 2017.
-- During the three and nine months ended December 31, 2018, the
Company sold 21,043 and 64,611 bbls of oil from its assets in
Azerbaijan.
-- During three and nine months ended December 31, 2018, the
Company sold 3,615 and 7,593 Mcf of natural gas from its Italian
assets.
-- During the three and nine months ended December 31, 2018, the
Company sold 18 and 628 bbls of condensate from its Italian
assets.
-- During the three and nine months ended December 31, 2018, the
Company sold 2,114 and 6,680 MWh of electricity from its Italian
electricity production assets.
-- On October 10, 2018, ARC Ratings, SA. ("ARC Ratings")
assigned the Company a medium to long-term issuer credit rating of
"B+ with Positive Outlook".
-- On October 22, 2018, the Company announced that additional
geological and reservoir investigations had enabled the Company to
identify a new, highly prospective structure in the Middle Eocene
and Upper Cretaceous formations of the Jafarli Field.
-- On November 7, 2018 the Company announced that it had
received approval for admission to trading of its entire common
share capital on the Merkur Market of the Oslo Børs (the "Merkur
Market"). In order to satisfy the Merkur Market admission
requirements the Company completed a private placement with
Norwegian investors (the "Private Placement"). The Private
Placement successfully raised gross proceeds of NOK 7,274k
(approximately GBP668k or CAD$1,142k) through the placement of
20,782,429 common shares of no par value (the "Placement Shares")
at a subscription price of NOK 0.35 per Placement Share.
-- On November 12, 2018, the Company successfully completed a
private placement on the Merkur Market of the Oslo Børs with
Norwegian investors raising gross proceeds of NOK 1,000k
(approximately GBP92k or CAD$157k) through the placement of
2,857,143 common shares of no par value (the "Placement Shares") at
a subscription price of NOK 0.35 per Placement Share.
Operational Update
The Company is pleased to confirm that preparation activities
for well deepening operations in well C-30 of the Jafarli Field
have been completed successfully.
As announced on February 8, 2019, Zenith's operational team had
mobilised the Company's A-80 truck-mounted workover rig to well
C-30 in order to perform cleanout operations and determine the
integrity of the wellbore for well deepening operations. These
operations have been completed without incident, and well C-30 has
been determined to be technically suitable for well deepening
operations.
C-30 is an adjacent well to C-37 in the Jafarli Field,
intersecting the Middle Eocene and Upper Cretaceous formations of
the same unexploited structure identified as the target zone for
well deepening operations in well C-37. In the event of successful
well deepening results in well C-37, the Company intends to
mobilise a drilling rig to well C-30 to perform well deepening
activities.
The Company's A-80 workover rig is being mobilised to the
Muradkhanli Field in order to perform workover activities. Zenith
will provide updates as appropriate on the progress of these
activities.
Civil Works in the Jafarli Field
The Company can confirm that civil works are in progress in the
Jafarli Field. Construction of a drilling rig platform on the C-37
well location is expected to begin immediately after the conclusion
of the first phase of civil works on the road leading to the well
location. Video updates regarding the progress of this work will be
disseminated via the Company's corporate website and social media
channels.
Andrea Cattaneo, Chief Executive Officer, commented:
"The Board of Directors is pleased with the 30 percent increase
in revenues registered in this set of financial results. This
clearly evidences the very favourable impact of resurgent energy
prices during the period and the financial value of our existing
production. Indeed, if possible, this further strengthens our
intention to materially increase our production activities in the
near-term, which we believe will be achievable through the success
of our well deepening programme in the Jafarli Field. A clear
victory in the aforementioned operations will be transformational
for the Company and is our primary objective at this time."
Further Information:
Zenith Energy Ltd
Andrea Cattaneo, Chief Executive Officer
Luca Benedetto, Chief Financial Officer
E-mail: info@zenithenergy.ca
Tel: +1 (587) 315 9031
Allenby Capital Limited - Financial Adviser
Nick Harriss
Nick Athanas
Tel: + 44 (0) 203 328 5656
Optiva Securities - Broker
Christian Dennis
Jonathan Brown
Tel: + 44 (0) 203 137 1903
Notes to Editors:
Zenith Energy Ltd. is an international oil and gas production
company, listed on the TSX Venture Exchange (TSX.V:ZEE) and London
Stock Exchange (LSE:ZEN). In addition, the Company's common share
capital was admitted to trading on the Merkur Market of the Oslo
Børs (ZENA:ME) on November 8, 2018. The Merkur Market is a
multilateral trading facility owned and operated by the Oslo
Børs.
The Company was assigned a medium to long-term issuer credit
rating of "B+ with Positive Outlook" on October 8, 2018 by Arc
Ratings, S.A.
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, 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.
Forward-looking statements
This news release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "objective", "ongoing",
"may", "will", "project", "should", "believe", "plans", "intends"
and similar expressions are intended to identify forward-looking
information or statements. More particularly and without
limitation, this press release contains forward-looking statements
and information concerning well deepening operations on certain of
the Company's wells, as well as other operational activities. The
forward-looking statements and information are based on certain key
expectations and assumptions made by Zenith, including the ability
to execute its strategy and realise its growth opportunities
including its ability to finance and execute its plans. Although
Zenith believes that the expectations and assumptions on which such
forward-looking statements and information are based are
reasonable, undue reliance should not be placed on the
forward-looking statements and information because the Company can
give no assurance that they will prove to be correct. All timing
given in this announcement, unless stated otherwise is indicative
and while the Company endeavours to provide accurate timing to the
market, it cautions that due to the nature of its operations and
reliance on third parties this is subject to change often at little
or no notice. By its nature, such forward-looking information is
subject to certain risks and uncertainties (both general and
specific) that could cause actual events or outcomes to differ
materially from those anticipated or implied by such
forward-looking statements. These risks and uncertainties include,
but are not limited to, Zenith being unable to finance or realise
growth opportunities. Readers are cautioned not to place undue
reliance on this forward-looking information, which is given as of
the date hereof, and to not use such forward-looking information
for anything other than its intended purpose. Zenith undertakes no
obligation to update publicly or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, except as required by law. The forward-looking
information contained herein is expressly qualified by this
cautionary statement.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCFMGMZVRZGLZG
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