TIDMZEN

RNS Number : 6239Q

Zenith Energy Ltd

22 October 2019

October 22, 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.

ZENITH ENERGY LTD.

("Zenith" or the "Company")

Increased participation in Norwegian Private Placement

Zenith Energy Ltd., ("Zenith" or the "Company"), (LSE: ZEN; TSX.V: ZEE; OSE: ZENA-ME), the international oil & gas production company operating the largest onshore oilfield in Azerbaijan, is pleased to announce the closing of the Private Placement ("Private Placement") on the Merkur Market of the Oslo Stock Exchange first announced to the market on October 21, 2019.

The Company has successfully raised gross proceeds of 9,808,000 (approximately GBP 824,000 or CAD$ 1,403,000) to subscribe for 28,022,857 common shares of no par value in the capital of the Company ("New Common Shares") at a price of NOK 0.35 per New Common Share (approximately GBP0.03 or CAD$0.05).

Payment and issue of the New Common Shares to complete the Private Placement is expected on or around October 23, 2019, and an update will be made upon completion.

The Private Placement has increased in size due to additional investor interest following the Company's first announcement on the morning of October 21, 2019.

As announced on October 21, 2019, Zenith intends to use the net proceeds of the Private Placement to finance the purchase of long lead items and the beginning of civil works required in preparation for planned drilling operations at well M-247 of the Muradkhanli oilfield, as well as for additional general working capital.

The Private Placement is subject to approval from the TSX Venture Exchange and the Oslo Stock Exchange.

Further Information:

 
 Zenith Energy Ltd 
 Andrea Cattaneo, Chief Executive    Tel: +1 (587) 315 
  Officer                             9031 
                                    ----------------------------- 
                                     E-mail: info@zenithenergy.ca 
                                    ----------------------------- 
 
 Peterhouse Capital - Joint Broker   Tel: + 44 (0) 207 
                                      469 0930 
                                    ----------------------------- 
 Lucy Williams 
                                    ----------------------------- 
 Charles Goodfellow 
                                    ----------------------------- 
 
 Novum Securities Limited - Joint    Tel: + 44 (0) 207 
  Broker                              399 9400 
                                    ----------------------------- 
 Charlie Brook-Partridge 
                                    ----------------------------- 
 Hugh McAlister 
                                    ----------------------------- 
 
 IFC Advisory Limited - Financial    Tel: + 44 (0) 203 
  PR & IR                             934 6630 
                                    ----------------------------- 
 Graham Herring 
                                    ----------------------------- 
 Zach Cohen 
                                    -----------------------------

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 9, 2019 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.

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October 22, 2019 02:00 ET (06:00 GMT)

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