Zenith Energy Ltd Participation in 2020 Marginal Field Bid Round (0356Q)
16 June 2020 - 4:30PM
UK Regulatory
TIDMZEN
RNS Number : 0356Q
Zenith Energy Ltd
16 June 2020
June 16, 2020
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Participation in Nigeria's 2020 Marginal Field Bid Round
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 its participation, in the capacity of technical and
financial partner to a Nigerian registered energy company, in the
2020 bid round for marginal oil and gas fields organised by the
Nigerian Department of Petroleum Resources ("DPR").
Overview regarding the 2020 Nigerian Marginal Fields Bidding
Round
On June 1, 2020, the DPR, on behalf of the Federal Government of
Nigeria, announced the launch of a new a bid round for a total of
57 marginal fields covering a selection of onshore, swamp and
shallow-offshore fields ("2020 Bid Round").
The overarching goal of the 2020 Bid Round, following a similar
initiative completed successfully in 2001, is to stimulate local
commercial participation in the Nigerian petroleum industry and
thereby create opportunities for domestic economic development.
Further key objectives of the 2020 Bid Round include the
following:
-- Growing production capacity by increasing the scope of
participation in Nigeria's petroleum sector, through
diversification of resources and inflow of investments;
-- Increasing oil and gas reserves through aggressive exploration and development efforts
As part of the 2020 Bid Round guiding principles, there is an
expectation that the development of these marginal acreages will
engender various opportunities to attract international capital and
technological expertise in partnership with local Nigerian
companies.
Under the guidelines provided by the DPR for the 2020 Bid Round
a marginal field ("Marginal Field") is defined as any field that
has been discovered and has been left unattended for a period of
not less than ten (10) years from the date of first recovery, or
any such field as the President of the Nigerian Federal Government
may, from time to time, identify as a Marginal Field.
The 2020 Bid Round is a process comprised of various stages
commencing with pre-qualification of the companies with relevant
technical and financial capabilities and duly registered in Nigeria
to carry out Exploration and Production by DPR, followed by
submission of a commercial and technical bid for evaluation under a
number of criteria by the Honourable Minister of Petroleum
Resources ("HMPR"), and concluding itself with the potential
assignment of a Marginal Field once all necessary formalities have
taken place and final approval from the President of Nigeria,
pursuant to the Petroleum Act (1969), is obtained.
Non-equity development funding
The Company can confirm that it is progressing in negotiations,
first announced to the market on March 2, 2020, with an
international oil major in order to provide funding for Zenith's
development objectives in Africa in the form of an offtake
agreement.
Further, the Company has also entered into negotiations with two
pan-African financial institutions for a loan facility that will be
used to fund the acquisition and development of Zenith's growing
portfolio in West Africa.
Andrea Cattaneo, Chief Executive Officer, commented:
"Zenith has had ambitions to establish a presence in Nigeria for
a number of years. The launching of the 2020 Bid Round for Marginal
Fields, which has not happened since 2001, represents an
exceptional opportunity for the Company and its Nigerian partner to
acquire an underdeveloped, potentially transformational oil
production and exploration asset in the current low oil price
environment.
Among the 57 Marginal Fields included in the 2020 Bid Round,
there are specific assets which are particularly appealing to
Zenith, especially on account of their compatibility with our
development objectives. Indeed, the near-term production potential
of certain assets is expected to facilitate the achievement of
financing agreements to support our expansion. We expect the
potential award of a Marginal Field, following the 2020 Bid Round
process, to happen within 6 months of bid submission.
I look forward to updating the market in due course regarding
our very exciting progress in Africa."
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
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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