Zenith Energy Ltd Payment to KUFPEC for Sidi El Kilani (6035P)
11 June 2020 - 4:30PM
UK Regulatory
TIDMZEN
RNS Number : 6035P
Zenith Energy Ltd
11 June 2020
June 11, 2020
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")
Payment to KUFPEC for Sidi El Kilani
Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; OSE:
ZENA-ME), the listed international oil & gas production company
focused on pursuing African development opportunities, is pleased
to announce that it has made payment for a total of US$250,000 to
Kuwait Foreign Petroleum Exploration Company K.S.C.C ("KUFPEC"), a
subsidiary of the State of Kuwait's national oil company, in
relation to the acquisition of a 22.5% working interest in the
North Kairouan permit and the Sidi El Kilani Concession (the "
Tunisian Acquisition "), which contains the Sidi El Kilani oilfield
("SLK").
As publicly announced on April 20, 2020, the total consideration
payable by Zenith in relation to the Tunisian Acquisition is
US$500,000 ("Consideration").
Under the terms of the conditional sale and purchase agreement
("SPA"), first announced to the market on April 20, 2020, signed
between Zenith Energy Netherlands B.V. ("Zenith Netherlands"), a
recently incorporated fully owned subsidiary of the Company, and
KUFPEC (Tunisia) Limited ("Seller"), a 100% subsidiary of KUFPEC,
KUFPEC's entitlement of oil produced from SLK since the date of
signing of the SPA will belong to Zenith Netherlands.
It is expected that the production revenue generated since the
date of signing of the SPA will be sufficient to fully satisfy the
second and final Consideration payment to be made by the Company to
the Seller for the Tunisian Acquisition by October 2020. Zenith
does not therefore expect to raise additional capital to fund the
Tunisian Acquisition.
Completion of the Tunisian Acquisition remains conditional on
approval being granted by the Comité Consultatif des Hydrocarbures
of the Republic of Tunisia in respect of the transfer of the
Seller's right, title and interest in and under the Tunisian
Acquisition to Zenith Netherlands.
Zenith can confirm that it has initiated the necessary
formalities in relation to the aforementioned approval process, and
that a decision is expected in due course.
New corporate website and publication of 2020 Investor
Presentation
Zenith is pleased to announce the release of a newly designed
corporate website in reflection of its new geographic identity and
strategic direction.
A 2020 Investor Presentation is available for download at:
www.zenithenergy.ca
Andrea Cattaneo, Chief Executive Officer, commented:
"We are delighted with the favourable terms Zenith has secured
in relation to the Tunisian Acquisition and we look forward with
enthusiasm to beginning activities at SLK in partnership with CNPC
and the Tunisian state oil company, Entreprise Tunisienne
d'Activités Pétrolières (ETAP).
The Company is also actively exploring additional onshore oil
production opportunities in the Republic of Tunisia: a safe,
democratic jurisdiction with a long-established history of
successful oil and gas production activities for independent
companies such as Zenith.
As is clear, we are systematically executing our development
strategy in Africa across a number of opportunities by diligently
deploying our financial resources to maximise the enrichment of our
portfolio at a time of great opportunity."
Further Information:
Zenith Energy Ltd.
Andrea Cattaneo, Chief Executive Tel: +1 (587) 315
Officer 9031
-----------------------------
E-mail: info@zenithenergy.ca
-----------------------------
Notes to Editors :
Zenith Energy Ltd. is an international oil and gas production
company, listed on the London Stock Exchange (LSE:ZEN) and the
Merkur Market of the Oslo Stock Exchange (ZENA:ME).
Zenith's development strategy is to identify and rapidly seize
value-accretive hydrocarbon production opportunities in the onshore
oil & gas sector, specifically in Africa. 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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