07:00 Tue 11 Feb 2020
Zenith Energy Ltd - Successful Issue of Bonds & Operational Update
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" or the "Company")
Successful Issue of Bonds & Operational Update
As anticipated on
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The distribution of the Notes is currently ongoing across a number of markets. It is expected that the USD Notes will shortly be the first fully subscribed series of Notes.
The Notes have been issued under Zenith's
The Notes are governed by Austrian law and, since the Notes are not convertible into equity of Zenith, the issuance of the Notes is not subject to the approval of the
The issue of the Notes is aligned with the Company's strategy of diversifying its financing towards non-equity dilutive funding to support its continued successful development.
AAOG Congo Acquisition
The Company's management has in recent weeks completed a number of visits to the
Management believes significant progress has been achieved during recent weeks and is pleased to report the following key highlights:
· Zenith has met with the relevant authorities to discuss the renewal of the License for a new 25-year term, as well as developing an understanding of the required signature bonus amount.
· The Company has also met with SNPC to present its development programme for Tilapia. Specific discussions were held in relation to geological and technical matters in relation to future planned drilling activities to produce the Mengo and Djeno horizons. Drilling operations are expected to commence during
· Meetings were held with SNPC with regards to seeking clarity on the repayment of the approximately
· Zenith can confirm that it has identified two suitable drilling rigs, both of which are in the proximity of the License (thereby significantly reducing mobilisation costs), to perform drilling operations in the License. Due to known difficulties experienced by previous operators with drilling equipment, Zenith will request a rigorous third-party comprehensive inspection of both units to be provided for the purposes of its commercial and technical tendering evaluations.
Acquisition of Coro Energy Italian Assets
Zenith can confirm, as announced on
Upon completion of the Italian Acquisition once the necessary approvals have been obtained, Zenith will be positioned as one of
The Company is pleased to note that natural gas prices in
In addition, natural gas production from the Italian Acquisition has recently increased from an average of approximately 40,000 scm/day (approximately 235 BOE per day) to an average of approximately 50,000 scm/day (approximately 295 BOE per day)
It is therefore expected that, upon completion of the Italian Acquisition, Zenith will have a daily total cumulative production from its enlarged Italian portfolio of approximately 65,000 standard cubic meters (approximately 382 BOE per day).
Azerbaijan Update
Exploration
As announced on
Zenith plans to finalise its geological and technical investigations, in consultation with
In recent months, the Company has acquired additional drilling equipment to enhance its 1,200hp drilling rig, and enlarged its spare parts inventory in view of near-term drilling activities.
C-30
The Company is awaiting approval to commence drilling activities in well C-30, Jafarli and shall update the market once this is received. As previously announced, all necessary civil works have successfully been completed at the well location.
C-37
As previously announced, the Company intends to install a custom-built bridge plug to isolate the Upper Cretaceous formation and enhance the long-term productivity to be obtained from the Middle Eocene formation.
To maximise cost efficiency, the Company plans to use its fully owned truck-mounted A-100 workover rig to perform this installation with mobilisation expected within the next 30 days.
"It has been a busy start to the year for Zenith as we continue to focus on our strategy of identifying and completing low-cost acquisitions with significant untapped production potential.
We are actively seeking to enrich our portfolio with the acquisition of AAOG Congo which we believe has the potential to deliver transformational value via successful drilling activities in the Mengo and Djeno horizons. Recent progress has been very encouraging, and I look forward to updating shareholders further in due course.
This is in addition to consolidating our natural gas production portfolio in
Zenith has also recently taken steps to strengthen our advisory team with two key appointments who we anticipate will contribute valuable knowledge and expertise to our ambitious expansion goals in
Further Information:
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Tel: +1 (587) 315 9031 |
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E-mail: info@zenithenergy.ca |
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Tel: + 44 (0) 207 399 9400 |
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Notes to Editors:
The Company was assigned a medium to long-term issuer credit rating of "B+ with Positive Outlook" on
The Company operates the largest onshore oilfield in
The Company's primary focus is the development of its
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
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