TIDMZEN
RNS Number : 3205I
Zenith Energy Ltd
23 November 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.
November 23, 2018
ZENITH ENERGY LTD.
("Zenith" or the "Company")
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 provide an update on its ongoing well
intervention in the Jafarli Field.
Following the Company's most recent update of November 2, 2018,
Zenith can confirm that the primary phase of its well C-37 well
intervention has entered the final stage.
Operational Progress - Well C-37, Jafarli Field
As announced on November 2, 2018, the Company's A-80
truck-mounted workover rig has run in hole with a scraper to
cleanout the production casing shoe at a depth of 3,904 metres.
During the operation an obstruction was encountered at a depth of
1,830 metres. As a result, the Company pulled the scraper out of
hole and performed running in hole of 2-7/8" tubing with mule shoe
which successfully cleared the obstruction and cleaned out the
wellbore to a depth of 3,904 metres.
The Company's field team is currently running in hole with a
tri-cone drill bit which has successfully cleared the previously
detected obstruction at a depth of 1,830 metres and expects to
reach the target depth of 3,904 metres (production cashing shoe)
during the course of this morning.
Following completion of the aforementioned activity, the Company
will pull the tri-cone drill-bit out of hole and subsequently
re-run a scraper in hole to perform a final cleanout of the casing
to a depth of 3,904 metres.
The Company will begin wireline logging as soon as the scraper
has been pulled out of hole following successful cleaning out of
the casing to a depth of 3,904 metres. Construction of the drilling
pad is expected to commence immediately after the conclusion of
wireline logging.
The wellbore will be considered ready for well deepening
operations once these activities have successfully been
concluded.
In addition, Zenith's operational team is assessing whether to
perform a further cleanout of the wellbore in the 3,906-3,987
metres interval followed by a production test to determine the
natural productivity of the well from the penetrated depths of the
Middle Eocene formation which are plugged with sand-solids.
A-100 Truck-Mounted Workover Rig
The Company confirms that the truck for the A-100 truck-mounted
workover rig has been completed by AutoKrAZ in Ukraine following
the installation of an enhanced 375hp engine. Zenith's team is now
completing the delivery acceptance checks and arranging for
transportation of the rig to Azerbaijan where the workover rig
structure, including the mast, will be installed. The Company
expects the A-100 workover rig to be deployed in operations by the
close of 2018.
180-Ton Truck-Mounted Drilling Rig
The Company will provide an update once a 180-ton truck-mounted
drilling rig is mobilised to the well location to begin drilling
activities after the completion of civil works at the C-37 well
location.
BD-260 Drilling Rig
The Company has received confirmation from B Robotics W S.r.l.,
("Robotics") that the BD-260 drilling rig, purchased by its
oilfield service company subsidiary, Zena Drilling Limited,
("Zena"), is now undergoing final testing and quality control prior
to shipment which is expected to take place during the first
fifteen days of December. The testing of the equipment will entail
a full rigging up of the BD-260 drilling rig in the Robotics base
for inspection by Zenith's technical team.
Ion Tica, Zenith Aran's Workover and Drilling Manager,
commented:
"Using the Company's A-80 workover rig for these activities has
saved Zenith approximately US$200,000 in rig rental costs. This is
an important saving and validates Zenith's strategy of operating
its key operational equipment. We have made good progress and
overcome all the challenges so far in the C-37 operation, I look
forward to concluding wellbore cleanout activities, which have been
intensive as we have reached a depth just short of 4,000 metres,
and beginning the drilling phase of the operation."
Further information:
Zenith Energy Ltd.
Andrea Cattaneo
Chief Executive Officer
E-mail: info@zenithenergy.ca
Tel: +1 (587) 315 9031
Daniel Stewart & Company Plc - (Joint Broker)
Robert Emmet- Corporate Broking
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, 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 Republic of Azerbaijan, 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.
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
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