REG - Zenith Energy Ltd - Operational update, Robbana concession

Zenith Energy (CA)Announcement

24/06/2022 10:00

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RNS Number : 1102Q  Zenith Energy Ltd  24 June 2022

June 24, 2022

ZENITH ENERGY LTD.

("Zenith" or the "Company")

Operational update, Robbana concession

Zenith Energy Ltd. (LSE: ZEN; OSE: ZENA), the energy company with proven
revenue generating production, exploration and development assets in Africa
and Europe, provides an update on operational activities in the Robbana
concession ("Robbana"), located onshore Tunisia.

Robbana-1 well ("ROB-1")

The Company can confirm that ROB-1 has successfully been returned to
production following the installation of a new packer supplied by Weatherford
and the previous determination of major corrosion in the casing being the
cause of water ingress in the wellbore.

ROB-1 is currently producing at a rate of approximately 30 barrels of oil per
day ("BOPD") with the installation of the recently acquired new Weatherford
sucker pump. It is the Company's expectation that a production rate of between
40-50 BOPD might be achieved once the well is given additional time to
stabilise.

 

The Company is of the view, in consideration of the well's age and condition,
that any significant change in the production parameters would risk
compromising ROB-1's structural integrity and long-term productivity.

Robbana-3 well ("ROB-3")

As previously announced, the Company has selected the well location for the
drilling of ROB-3, a new well that will reach a total target depth of
approximately 2,500 metres, following an in-depth geological and reservoir
review enhanced by new information obtained during the workover of ROB-1.

 

Civil works are expected to begin during the month of September 2022, with a
commercial tender for the selection of a drilling services contractor to be
conducted during the coming months, alongside completion of the necessary
local approval process in accordance with applicable Tunisian legislation.

Drilling activities are expected to commence in November 2022, following the
mobilisation of a drilling to the well location.

The necessary long-lead items have already been acquired and are being held in
storage by the Company and funding for ROB-3 is expected to be obtained by way
of the Company's existing cash reserves.

Andrea Cattaneo, Chief Executive Officer of Zenith, commented:

 

"We are pleased to have now successfully completed all work at ROB-1,
acquiring top-level equipment within strict budgetary parameters. In the
current high oil price environment, approximately 30 BOPD from ROB-1
represents a relatively significant source of revenue generation, with the
potential to increase as the well is given more time to stabilise. Similarly,
we are pleased to have successfully been able to restore production by way of
the second well intervention which was necessary to remove water ingress in
the wellbore.

Our attention will now turn to drilling ROB-3, having obtained valuable
insights about the formation by way of our work in ROB-1. Our geological and
reservoir studies have been further refined and it is important to recall that
third-party geophysical analysis suggests that the Robbana concession has
likely only produced 4.35% of its estimated reserves to date.(1) This gives us
confidence in the future production potential of Robbana through the ROB-3
well which will be drilled later this year.

 

Our objective for Robbana is to reach a daily production rate of approximately
200-250 BOPD, which would represent the achievement of approximately a tenfold
increase in daily production from the concession since it was acquired by
Zenith.

 

"The team continues to work on several fronts with confidence, and we look
forward to updating investors in due course regarding our potentially
transformational progress during 2022."

 

Further Information:

 Zenith Energy Ltd

Andrea Cattaneo, Chief Executive Officer             Tel: +1 (587) 315 9031

                                                       E:   info@zenithenergy.ca
 BlytheRay - Financial PR/IR                           Tel: +44 207 138 3204

 Tim Blythe, Alice McLaren, Madeleine Gordon-Foxwell   E: zenith@blytheray.com

 Alternative Resource Capital - Broker

Alex Wood                                            Tel: +44 (0) 207 186 9004

 Keith Dowsing                                         Tel: + 44 (0) 207 186 9005

 

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
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.

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.

 

*Endnotes

1.    This assessment has not been produced in accordance with Canadian
National Instrument 51-101, (NI 51-101), or other internationally recognised
standard.

 

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