TIDMZEN
RNS Number : 4534I
Zenith Energy Ltd
02 December 2022
December 2, 2022
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Development of Italian Gas Production Portfolio
Zenith Energy Ltd. (LSE: ZEN; OSE: ZENA) , the energy company
with proven revenue generating production, exploration and
development assets in Africa and Europe is pleased to announce its
plans to reactivate certain natural gas production concessions
within its Italian portfolio.
Highlights:
-- Initial production at the Masseria Grottavecchia Concession
("MGC") is expected to be approximately 5,000-10,000 cubic metres
of natural gas per day, with expected monthly production revenues
of between approximately EUR 40,000 - EUR 80,000.
-- At the San Teodoro Concession ("STC"), Zenith intends to
re-complete the San Teodoro 1 Dir A ("ST-1D") well, to achieve
commercial production from two previously identified gas bearing
formations. If successful, production of up to 10,000 cubic meters
of natural gas is expected, with revenues of approximately EUR
100,000 per month depending on production.
-- Production at the Sant'Andrea concession is now expected to commence during Q1 of 2023
The Company is also pleased to announce that the Ministry of
Environment and Energy Security (Ministero dell'ambiente e della
sicurezza energetica) has conducted a comprehensive periodic review
of the technical and financial capabilities of Zenith's Italian
subsidiary, confirming its status as a company meeting the required
standards to operate in Italy.
Masseria Grottavecchia
The Masseria Grottavecchia Concession covers approximately 53
square kilometres and is located between the Molise and Puglia
regions of Southern Italy. The production concession was first
granted in 1988 following drilling of a well named 'Traetta' that
was successfully drilled in 1986, but never brought into
production.
In view of the significantly improved natural gas pricing
outlook and the increased revenue generation from its Italian
energy production operations, the Company intends to make
infrastructural investments for an amount of approximately EUR
900,000 to construct a natural gas treatment plant.
Initial production from MGC, which has never entered commercial
production due to the lack of the required infrastructure, is
expected to be approximately 5,000 - 10,000 cubic metres of natural
gas per day with monthly production revenue expected in the region
of approximately EUR 40,000 - EUR 80,000.
Zenith holds a 20% working interest in MGC via its Italian
subsidiary and is the operator. In view of the Company's intended
investment, all future production revenue to be obtained will be to
Zenith's sole entitlement. MGC is scheduled to expire in 2028 with
the possibility of an extension being granted.
San Teodoro
The San Teodoro Concession covers approximately 60 square
kilometres and is situated in the Basilicata region of Southern
Italy. Zenith holds a 100% working interest in STC by way of its
Italian subsidiary. It is not producing and is scheduled to expire
in 2029 with the possibility of an extension being granted.
The production concession was first granted in 1989 following
drilling of a well named San Teodoro 1 ("ST-1") that was drilled in
1988.
A sidetrack to ST-1 was drilled in 2003, named San Teodoro 1 Dir
A ("ST-1D"), however, the well was not successfully completed and
production was not achieved.
Zenith intends to re-complete ST-1D with the goal of achieving
commercial production from two previously identified gas bearing
formations.
A total of approximately EUR 600,000 has been budgeted to fund
the well intervention in STC, as well as to fund the installation
of new natural gas treatment infrastructure because of the high
methane content of the natural gas produced from STC.
A production of up to 10,000 cubic meters of natural gas is
expected in the event of a successful recompletion of ST-1D.
All production from STC will be sold locally, rather than by way
of the national pipeline, enabling a higher selling price to be
achieved and resulting in an expected monthly revenue of
approximately EUR 100,000 depending on the production rate to be
achieved.
Update on Reactivation of Sant'Andrea concession in Italy
The Company is still awaiting certain final bureaucratic
formalities to be completed prior to production activities being
recommenced.
In view of the above, production is now expected to commence
during Q1 of 2023.
Luca Benedetto, Chief Financial Officer, and Managing Director
of Italian operations, commented:
"We are very pleased, following a periodic review last performed
in 2013, that our Italian subsidiary has received renewed
confirmation of its technical and financial capabilities as an
operator by the Italian oil and gas authorities.
Our Italian energy production portfolio has significant untapped
development potential. We look forward with enthusiasm to unlocking
this during Q1 and Q2 of 2023 and progressively scaling up our
revenue generation in the current favourable energy pricing
climate."
Further Information:
Zenith Energy Ltd
Tel: +1 (587) 315 1279
Andrea Cattaneo, Chief Executive E: info@zenithenergy.ca
Officer
BlytheRay - Financial PR/IR Tel: +44 207 138 3204
Tim Blythe, Megan Ray E: zenith@blytheray.com
Alternative Resource Capital -
Broker Tel: +44 (0) 207 186 9004
Tel: + 44 (0) 207 186 9005
Alex Wood
Keith Dowsing
Notes to Editors :
Zenith Energy Ltd. is a revenue generating, independent energy
company with production, exploration and development assets in
Tunisia, Italy and the Republic of the Congo, including electricity
generation in Italy. The Company is listed on the London Stock
Exchange Main Market (LSE: ZEN) and the Euronext Growth of the Oslo
Stock Exchange (OSE: ZENA).
Zenith's strategic focus is on pursuing transformational
opportunities in the Middle East, Africa, and Europe through the
development of proven revenue generating oil, gas, and electricity
production assets, as well as low-risk exploration activities in
assets with existing production.
For more information, please visit: www.zenithenergy.ca
Twitter: @zenithenergyltd
LinkedIn: https://bit.ly/3A5PRJb
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK domestic law by virtue of the European Union (Withdrawal) Act
2018 ("MAR"). Upon the publication of this announcement via a
Regulatory Information Service ("RIS"), this inside information is
now considered to be in the public domain.
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