Zenith Energy Ltd Offer to acquire oil production assets in Tunisia (0988W)
April 21 2021 - 2:00AM
UK Regulatory
TIDMZEN
RNS Number : 0988W
Zenith Energy Ltd
21 April 2021
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT)
REGULATIONS 2019/310.
April 21, 2021
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Binding Offer to acquire oil production and development assets
in Tunisia
Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; OSE:
ZENA), the listed international oil & gas production company
focused on pursuing African development opportunities, is pleased
to announce that it has made a binding offer (the "Offer") to
wholly acquire a company holding a 100% interest in two
hydrocarbons production and development concessions in Tunisia (the
"Potential Acquisitions"), which has now been accepted.
Terms
The Offer is represented by a mix of cash payments and
assumption of debt by Zenith for a total consideration of
approximately USD$200,000.
Production
The Potential Acquisitions currently produce approximately
80-100 barrels of condensate per day with 5.5-6 MMSCF of natural
gas, which is re-injected into the formation, from the first
Potential Acquisition concession, and approximately 25 barrels of
oil per day from the second Potential Acquisition concession. One
well within the first Potential Acquisition concession suffered
tubing string damage and has been temporarily shut-in, having had a
stabilised production range of between approximately 500-600
barrels of oil per day prior to production being suspended. The low
oil price environment during 2020 and the material investment
required to restore production from this well have prevented the
necessary repair work from being implemented.
A recent study carried out by seller in respect of the second
Potential Acquisition, comprising production, cost-effectiveness
and feasibility evaluations, concluded that the current production
of approximately 25 barrels of oil per day could be increased to up
to approximately 200 barrels of oil per day via drilling
activities. The seller did not implement the recommendations of the
study due to the low oil price environment during 2020 and the
emergence of financing difficulties.
Terms and Expiry of Potential Acquisitions
Both Potential Acquisitions will be acquired with a 100% working
interest.
The Company can confirm that the Potential Acquisitions are due
to expire during the years 2033 and 2034 respectively.
Andrea Cattaneo, Chief Executive Officer of Zenith,
commented:
"We are very pleased to continue further enriching our portfolio
of oil and gas production and development assets in Tunisia,
especially with these Potential Acquisitions which contain
significant untapped potential and opportunity for value
creation.
We expect to shortly achieve a daily production in excess of
approximately 1,000 barrels of oil per day by way of our recently
announced acquisitions, as well as the near-term development
activities we intend to perform in these assets, which would very
favourably position the Company in terms of profitability in the
current oil price environment.
I look forward to sharing further information on the Potential
Acquisitions once they are completed."
Further Information:
Zenith Energy Ltd
Andrea Cattaneo, Chief Executive Officer Tel: +1 (587) 315 9031
-----------------------------
E-mail: info@zenithenergy.ca
-----------------------------
Allenby Capital Limited - Financial Adviser
& Broker
-----------------------------
Nick Harriss Tel: + 44 (0) 203 328
Nick Athanas 5656
-----------------------------
Notes to Editors :
Zenith Energy Ltd. is an international oil and gas production
company, listed on the London Stock Exchange (LSE:ZEN) and the
Euronext Growth Market of the Oslo Stock Exchange (OSE:ZENA).
Zenith's development strategy is to identify and rapidly seize
value-accretive hydrocarbon production opportunities in the oil
& gas sector, specifically in Africa.
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ACQDXGDSCGDDGBG
(END) Dow Jones Newswires
April 21, 2021 02:00 ET (06:00 GMT)
Zenith Energy (LSE:ZEN)
Historical Stock Chart
From Aug 2024 to Sep 2024
Zenith Energy (LSE:ZEN)
Historical Stock Chart
From Sep 2023 to Sep 2024