Zenith Energy Ltd - Joint Venture Agreement for acquisition
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")
Joint Venture Agreement for acquisition of second oil production asset in the
The primary objective of the Agreement is the potential acquisition of an onshore oil production licence (the "Potential Acquisition"), last producing at a rate of approximately 300 barrels of oil per day from the regionally proven Mengo formation as recently as 2019. Production has currently been suspended pending the assignation of a new licence.
The Potential Acquisition is located in the Kouilou region of the
Under the terms of the Agreement, the Company and its local partner will jointly submit an application to the relevant authorities in the
Further, in accordance with the Agreement, it is stipulated that Zenith shall have the role of joint operator and majority partner in the event that a new licence is successfully obtained in relation to the Potential Acquisition.
Following preliminary technical analysis of the Potential Acquisition, as part of the due diligence activities conducted prior to entering into the Agreement, Zenith is confident that profitable oil production operations can be achieved following the reactivation of the Potential Acquisition and the performance of targeted, low-intensity workover activities.
The Potential Acquisition is in line with the Company's strategy of identifying near-term production and development assets in
"As is known by shareholders, the Company's senior management is currently in the
Our presence in the cities of Pointe-Noire and
The Potential Acquisition has two key qualities that render it highly compatible for our portfolio: near-term profitable production potential and significant development potential to progressively maximise production on account of the potentially highly significant oil reserves in place which will require independent evaluation under Canadian National Instrument 51-101.
I look forward to further updating shareholders in due course on our exciting progress in the
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Tel: +1 (587) 315 9031
Notes to Editors:
Zenith's development strategy is to identify and rapidly seize value-accretive hydrocarbon production opportunities in the onshore oil & gas sector, specifically in
This information is provided by RNS, the news service of the
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