Zenith Energy Ltd Acquisition of Sidi El Kilani from CNPC (2815Y)
08 September 2020 - 4:30PM
UK Regulatory
TIDMZEN
RNS Number : 2815Y
Zenith Energy Ltd
08 September 2020
September 8, 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")
Acquisition of Sidi El Kilani from CNPC
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 its wholly owned subsidiary Zenith Energy
Netherlands B.V. ("Zenith Netherlands") has signed a conditional
sale and purchase agreement ("SPA") with CNPC International
(Tunisia) Ltd., ("Seller"), a 100% subsidiary of CNPCI, CNPC
International Ltd., f or the acquisition of a working interest in,
inter alia, the North Kairouan permit and the Sidi El Kilani
Concession (the " Tunisian Acquisition "), which contains the Sidi
El Kilani oilfield ("SLK").
The Seller holds an undivided 22.5% interest in the Tunisian
Acquisition, together with 25 Class B shares in Compagnie
Tuniso-Koweito-Chinoise de Pétrole (CTKCP), the operator,
representing 25% of the issued share capital of the company.
The Seller has agreed to sell, assign and transfer to Zenith
Netherlands the Tunisian Acquisition on the terms and subject to
the conditions set out in the SPA.
The consideration payable by Zenith Netherlands under the terms of the SPA is US$300,000 (the "Consideration").
Completion of the SPA is conditional on approval being granted
by the Comité Consultatif des Hydrocarbures ("CCH") of the Republic
of Tunisia in respect of the transfer of the Seller's right, title
and interest in and under the SLK Concession to Zenith Netherlands
("Completion").
Upon Completion of the Tunisian Acquisition, the Company's
working interest in SLK will equate to a daily production of
approximately 300 barrels of oil per day.
Background
The Tunisia Acquisition is Zenith's second acquisition in
relation to SLK and enlarges the Company's total conditional
interest in the Tunisian Acquisition to 45%. On April 20, 2020, the
Company announced to the market that it had signed a conditional
SPA to acquire the working interest of KUFPEC (Tunisia) Limited
("KUFPEC"), a 100% subsidiary of Kuwait Foreign Petroleum
Exploration Company K.S.C.C, a subsidiary of the State of Kuwait's
national oil company, in relation to the Tunisian Acquisition.
The Company is expecting regulatory approval from the CCH in
relation to the Tunisian Acquisition from KUFPEC in due course.
As previously announced, Zenith has already engaged an
independent qualified reserves evaluator to produce a new Competent
Person's Report in compliance with Canadian securities laws,
specifically the COGE Handbook and National Instrument 51-101 -
Standards of Disclosure for Oil and Gas Activities, in order to
obtain an updated reserves evaluation for the Tunisian
Acquisition.
Andrea Cattaneo, Chief Executive Officer, commented:
"We are delighted to have concluded this transaction with
CNPCI.
The Board of Directors is highly satisfied with the favourable
commercial terms agreed in relation to Tunisian Acquisition.
Upon Completion, the Company will have material daily production
revenue and an exciting future in developing the Sidi El Kilani
asset in partnership with Entreprise Tunisienne d'Activités
Pétrolières (ETAP), the state oil company.
We are also very pleased to have increased our presence in
Tunisia; a safe, democratic jurisdiction with a long-established
history of successful oil and gas production activities for
independent companies such as Zenith.
The Company has developed a very constructive relationship with
CNPCI, and we look forward to exploring further opportunities for
mutual cooperation in due course."
Further Information:
Zenith Energy Ltd
Andrea Cattaneo, Chief Executive Tel: +1 (587) 315 9031
Officer
-----------------------------
E-mail: info@zenithenergy.ca
-----------------------------
Allenby Capital Limited - Financial
Adviser & Broker
-----------------------------
Nick Harriss Tel: + 44 (0) 203 328
Nick Athanas 5656
-----------------------------
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ACQDGGDCDSGDGGR
(END) Dow Jones Newswires
September 08, 2020 02:30 ET (06:30 GMT)
Zenith Energy (LSE:ZEN)
Historical Stock Chart
From Apr 2024 to May 2024
Zenith Energy (LSE:ZEN)
Historical Stock Chart
From May 2023 to May 2024