REG - Zenith Energy Ltd - First Agreement for USA acquisition campaign

Zenith EnergyAnnouncement

02/06/2023 07:00

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RNS Number : 4247B  Zenith Energy Ltd  02 June 2023

June 2, 2023

ZENITH ENERGY LTD.

("Zenith" or the "Company")

First Agreement for USA acquisition campaign

Zenith Energy Ltd. (LSE: ZEN; OSE: ZENA), the international energy
production company, is pleased to announce that it has entered into an
agreement (the "Agreement") with Stateside Energy LLC, a company registered
under the laws of the State of Oklahoma, United States of America (hereinafter
"Stateside") to acquire and operate a portfolio of oil production and
development licences in Oklahoma, as well as certain other States in the USA
(the "Targets").

Key Terms

·    Stateside is an oil and gas operator with a portfolio of seven oil
wells in the State of Oklahoma.

·    Under the Agreement, Zenith will incorporate a wholly owned special
purpose vehicle in the United States of America for the purpose of acquiring
oil wells and licence blocks in the State of Oklahoma and certain other States
in USA (the "Newco").

·    Stateside will make available its personnel in Oklahoma for the
purpose of assisting the business development of Newco.

·    Zenith will consider providing Stateside with the following incentive
bonus structure based upon the Newco reaching the following incremental
average production targets: 75, 125, 175 and 225 barrels of oil per day (the
"Milestones").

·    Upon the achievement of each Milestone Zenith will consider issuing
Stateside certain amounts payable by way of issuing equity securities (the
"Incentive Bonus Payments").

·    Stateside agrees to sell its oil production wells to Newco, subject
to the completion of a satisfactory due diligence by Zenith, for a nominal
consideration.

·    It is planned that the Newco will negotiate the acquisition of
approximately 70 oil production wells located on property leases totalling
approximately 3,200 acres located in the State of Oklahoma for sale by a
third-party identified by Stateside (the "Potential Vendor").

·    The Potential Vendor has indicated it also intends to sell certain
oilfield service equipment including, inter alia, a pulling unit and a tank
truck, for an amount to be agreed.

·    Zenith has agreed to invest approximately US$2 million, subject to
the completion of a satisfactory due diligence, for the acquisition of Targets
to be introduced by Stateside.

Andrea Cattaneo, Chief Executive Officer, commented:

"We are pleased to formally begin our expansion in the USA by way of the
Agreement with Stateside. The advantages of operating in North America are
readily apparent, and primarily include the speed of execution for
transactions, with the resulting delivery of potential immediate oil
production to Zenith, and the relatively conspicuous lack of bureaucratic
delays and other detrimental impediments to corporate development seen
elsewhere.

The Company is currently negotiating the potential acquisition of various oil
production assets with significant development potential across the USA. We
look forward with enthusiasm to potentially completing these in an expeditious
manner, subject to rigorous due diligence, by leveraging one of our strengths:
deal-making."

 

 

Further Information:

 Zenith Energy Ltd

Andrea Cattaneo, Chief Executive Officer     Tel: +1 (587) 315 1279

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

 Tim Blythe, Megan Ray, Matt Bowld             E:  zenith@blytheray.com (mailto:zenith@blytheray.com)

 Allenby Capital Limited - Financial Adviser   Tel: + 44 (0) 203 328 5656

 Nick Harriss

 Daniel Dearden-Williams
 Miriad Limited - Media Enquiries              Tel: +44 7867527659

 Zak Mir                                       E: zak@zakmir.com (mailto:zak@zakmir.com)

 

Notes to
Editors:

Zenith Energy Ltd. is a revenue generating, independent energy company with
production, exploration and development assets in Africa, the Middle East and
Europe, 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 development opportunities through the
development of proven revenue generating energy production assets, as well as
low-risk exploration activities in assets with existing production.

For more information, please visit:  www.zenithenergy.ca
(http://www.zenithenergy.ca)

Twitter: @zenithenergyltd

LinkedIn:  https://bit.ly/3A5PRJb (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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