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Zenith Energy Ltd (ZEN)

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Friday 12 January, 2018

Zenith Energy Ltd

Exclusivity Agreement for Central Asian Assets

RNS Number : 6783B
Zenith Energy Ltd
12 January 2018
 

January 12, 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")

Exclusivity Agreement signed for production and exploration assets in Central Asia

 

Zenith Energy Ltd., ("Zenith" or the "Company"), (LSEZENTSX.VZEE), the dual listed international oil & gas production company operating the largest onshore oilfield in Azerbaijan, is pleased to announce that it has entered into an exclusivity agreement (the "Agreement") for the acquisition of various production and exploration licences in a Central Asian country (the "Proposed Acquisition").

 

Highlights

 

·
The Proposed Acquisition envisages Zenith acquiring a combined total acreage covering approximately 3,600 sq. kilometres. Specifically, these include: production areas covering approximately 550 sq. kilometres, and highly prospective exploration areas covering approximately 3,050 sq. kilometres.
 
 
·
Low-cost existing production of approximately 250 bopd transported via tanker to local refineries.  
 
 
·
The Proposed Acquisition licences are located in a prolific oil and gas basin with a proven petroleum system. These are significantly undeveloped and present a number of highly attractive field rehabilitation and exploration opportunities through the introduction of new technology and the application of international oil production expertise.
 
 
·
Extensive 2D seismic performed across the license areas.
 

 

The Company will provide an update regarding the progress of the Proposed Acquisition once the due diligence process has been completed. The Proposed Acquisition remains at an early stage and there can be no guarantee that the transaction will be successfully completed. Completion of the Proposed Acquisition remains conditional on, inter alia, completion of satisfactory due diligence, the entering into of binding agreements and financing of the Proposed Acquisition.

 

Zenith is considering a number of funding options to finance the potential transaction including debt and equity, whilst seeking to avoid significant dilution to existing shareholders.

 

Exclusivity Agreement Summary 

 

The Agreement provides that Zenith shall hold the exclusive right to negotiate the signing of the Proposed Acquisition. The Agreement will expire on the later of execution of the Proposed Acquisition, or April 30, 2018.

 

Andrea Cattaneo, Chief Executive Officer of Zenith, commented:

 

"Zenith has always made clear its intention to identify and acquire large, undeveloped onshore fields with enormous development potential. Indeed, one of the Company's defining strengths is the fact that it has real assets with large reserves in place, generating significant revenue on a monthly basis. The proposed acquisition would at this preliminary stage appear to present a valuable development opportunity for Zenith, especially on account of its significant reserves and geographic proximity to the Company's primary operational interest in Azerbaijan.  

 

I look forward to updating the market on our progress with the transaction."  

 

  

 

 

For further information please contact:

Zenith Energy Ltd.  

Andrea Cattaneo

Chief Executive Officer 

Email: [email protected]

Telephone:  +1 (587) 315 9031 

 

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
 
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