Zenith Energy Ltd Proposed Acquisition of Norwegian Subsidiary (1259W)
09 December 2019 - 6:00PM
UK Regulatory
TIDMZEN
RNS Number : 1259W
Zenith Energy Ltd
09 December 2019
December 9, 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
announcement is now considered to be in the public domain.
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Proposed Acquisition of Norwegian Subsidiary
Zenith Energy Ltd., ("Zenith" or the "Company"), (LSE: ZEN;
TSX.V: ZEE; OSE: ZENA-ME), the international oil & gas
production company, announces that the Company has decided to
discontinue its plans to acquire a Norwegian oil & gas company,
Nordic Petroleum AS ("Nordic"), by way of an exchange of equity
(the "Proposed Acquisition"), as announced on November 4, 2019.
Due to unexpected complications and potentially high costs to
complete the Proposed Acquisition, the Board has decided not to
proceed with the Proposed Acquisition.
Zenith will continue with its plans to establish a Norwegian
vehicle for intended participation in future licensing bids to be
organised by the Norwegian Ministry of Petroleum and Energy, as
well as to actively pursue the potential acquisition of mature
energy production assets. The Company intends to create a Norwegian
subsidiary (anticipated to be named Zenith Energy Norway AS) in the
immediate future.
In the meantime, the Company's strategy to enrich its portfolio
has recently been demonstrated by the acquisition of Coro Energy's
producing assets in Italy, as announced on December 3, 2019, which
shall position the Company as one of Italy's leading natural gas
producers and operators. It is expected that the acquisition of
further European natural gas production assets may be completed in
the near future.
Andrea Cattaneo, Chief Executive Officer of Zenith,
commented:
"The Board views Norway as an ideal environment for the
development of junior energy companies such as Zenith on account of
its highly specialised investor community and the country's long
history of successful energy production.
It is regrettable that the proposed acquisition of Nordic could
not be completed due to unforeseen complications and the potential
incurrence of high costs. We wish Nordic and its shareholders all
the best in their future endeavours.
At the same time, we are pleased to have found a strategically
preferable, non-dilutive, alternative avenue for the imminent
establishment of our presence in Norway."
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. 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
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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