Zenith Energy Ltd Purchase of Drilling Equipment (8237N)
23 January 2019 - 6:00PM
UK Regulatory
TIDMZEN
RNS Number : 8237N
Zenith Energy Ltd
23 January 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.
January 23, 2019
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Purchase of Drilling Equipment
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 that its oilfield service
company subsidiary, Zena Drilling Limited, ("Zena"), has purchased
drilling equipment from B Robotics W S.r.l., ("Robotics") for a
total amount of approximately EURO 722,000.
The drilling equipment purchased includes the following:
-- 3,000 metres of drill pipe
-- Power tongs
-- Koomey control unit and control panel
-- Choke manifold
-- Choke manifold control box
-- Drill pipe elevators of various specifications
-- Drilling jars
-- Drill collars
-- Safety clamps
-- Slips of various specifications
-- Fishing equipment
-- Pipe Wrenches
-- Tool pusher control panel
-- BOP system
Transportation of the BD-260 Drilling Rig to Azerbaijan
The Company has agreed with Robotics that approximately 75% of
the aforementioned drilling equipment will be transported with the
BD-260 drilling rig. This is expected to enable a reduction in
transportation costs and a faster deployment of the equipment in
operations.
Zenith can also confirm that it has reached an agreement with an
international logistics company for the transportation of the
BD-260 drilling rig from Italy to Azerbaijan. Shipment is expected
to begin on January 28, 2019.
Andrea Cattaneo, Chief Executive Officer, commented:
"I am very pleased that the BD-260 drilling rig is now ready for
shipment after a full rigging up and rigorous inspection. I look
forward to seeing all the components systematically loaded onto the
approximately 40 trucks required for its transportation. We are
extremely excited to deploy the rig in Azerbaijan.
As will be discernible from the overview of the ancillary
drilling equipment we have purchased from Robotics, it consists of
important long-term drilling tools we shall use during operations
in 2019.
Zenith's strategic preference will always be towards owning the
key equipment required for its long-term operational development
with the purpose of maximising cost-control and avoiding a
dependence on costly third-party service providers. Indeed, at
every opportunity we have sought to direct significant quantities
of capital raised towards targeted investments in equipment.
I thank Robotics for their support. We are very pleased with our
collaboration so far."
Neither the TSX Venture Exchange nor its Regulation Service
Provider (as that term is defined in the policies of TSXV) accepts
responsibility for the adequacy of this release.
Further Information:
Zenith Energy Ltd
Andrea Cattaneo
Chief Executive 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 - Joint Broker
Christian Dennis
Tel: + 44 (0) 203 137 1903
Daniel Stewart & Company Plc - Joint Broker
Robert Emmet - Corporate Broking
Tel: + 44 (0) 207 776 6550
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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