(via TheNewswire)
March 2, 2020 - TheNewswire - Calgary, AB - Zenith Energy Ltd., ("Zenith" or the "Company"), (LSE:ZEN); (TSXV:ZEE); (OSE:ZENA-ME), the international oil & gas production company, is pleased to announce that it has signed an exclusivity agreement to acquire an operated working interest in an onshore oil production asset in Tunisia (the "Acquisition").
Tunisia Highlights:
- Daily national oil production of approximately 35,000 bopd
- Safe, democratic jurisdiction
- Fast monetisation of produced oil with favourable fiscal regime
- Attractive domain for junior independent exploration and production companies
The Acquisition currently produces at a rate of approximately 700 barrels of oil per day, generating gross annual revenues of approximately US$15 million.
Zenith is advanced negotiations with an international oil major to sign an offtake agreement for the asset's future oil production in order to fund the Acquisition. There are no plans to issue equity consideration to fund the Acquisition.
The Company intends to complete the Acquisition by March 31, 2020 subject to the satisfactory conclusion of currently ongoing due diligence activities.
Andrea Cattaneo, Chief Executive Officer, commented:
"It is Zenith's strategy to acquire revenue generating oil and gas production assets.
The Acquisition represents an attractive opportunity to enrich our asset portfolio in a country where management have significant experience.
We are currently performing due diligence and visiting the target asset with a view to completing the Acquisition by March 31, 2020.
It is important to underline that we have no plans to issue equity to fund the Acquisition or its immediate development following completion."
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Further Information:
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Zenith Energy Ltd
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Andrea Cattaneo, Chief Executive Officer
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Tel: +1 (587) 315 9031
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E-mail: info@zenithenergy.ca
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Novum Securities Limited - Broker
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Tel: + 44 (0) 207 399 9400
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Charlie Brook-Partridge
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Hugh McAlister
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Notes to Editors :
Zenith Energy Ltd. is an international oil and gas production company, listed on the TSX Venture Exchange (TSXV: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 Bors (ZENA:ME) on November 8, 2018. The Merkur Market is a multilateral trading facility owned and operated by the Oslo Bors.
The Company was assigned a medium to long-term issuer credit rating of "B+ with Positive Outlook" on October 9, 2019 by Arc Ratings, S.A. On November 18, 2019, the Company was assigned a "B+" with Stable Outlook debt issuer credit rating by Rating-Agentur Expert RA.
The Company operates the largest onshore oilfield in Azerbaijan by cumulative acreage following the signing of a 25-year REDPSA, (Rehabilitation, Exploration, Development and Production Sharing Agreement), with SOCAR, State Oil Company of the Republic of Azerbaijan, in 2016. 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.
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 about the potential acquisition of an operated working interest in an onshore oil production asset in Tunisia. 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 and the 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, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), constraint in the availability of services, commodity price and exchange rate fluctuations, changes in legislation impacting the oil and gas industry, adverse weather or break-up conditions and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures or the rehabilitation programme. 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.
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