Zenith Energy Ltd (LSE:ZEN, TSX-V:ZEE) jumped more than 60% on the latest decision of the Arbitral Tribunal of the International Centre for Settlement of Investment Disputes (ICSID) in the company's case against Tunisia.
The energy group is suing the Tunisian state for US$639 million related to breaches of trade agreements with the UK relating to the Sidi El Kilani and Ezzaouia concessions.
Zenith said that the tribunal rejected the request by Tunisia for Bifurcation “in very severe terms", dismissing the Respondent's [Tunisia’s] application in its entirety and has reserved all other matters, including those relating to costs, for a subsequent order, decision or award.
The decision has also ordered both parties to agree to a shorter procedural timetable by no later than January 20, 2025.
Andrea Cattaneo, Zenith's chief executive, said: "Progress in respect of our international legal arbitrations against the Republic of Tunisia, with claims totalling approximately US$639.5 million, continues without pause.
“We are pleased by the fact that the decisions in respect of both the ICC-2 Arbitration, expected during the summer of 2025, and the ICSID Arbitration, expected during the first two quarters of 2026, are no longer in the distant future and are increasingly within sight.
“Following the recent favourable decision achieved in the ICC-1 Arbitration, it is apparent that there is a linear and effective pathway by which Zenith and its shareholders can be compensated for the very significant damages suffered because of the arbitrary conduct of the Tunisian authorities.
“We are particularly grateful to our very capable legal team, comprised by Professor Thomas Clay (Clay Arbitration) and Mr. Simon Le Wita (Charles Russell Speechlys CRS - Paris) who have been instrumental in presenting the merit and validity of our position."
Shares in Zenith rose 1.85p to 5.25p.