REG - Zenith Energy Ltd - MOU and Exclusivity for asset in Kazakhstan

Zenith EnergyAnnouncement

04/09/2023 10:45

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RNS Number : 2846L  Zenith Energy Ltd  04 September 2023

September 4, 2023

ZENITH ENERGY LTD.

("Zenith" or the "Company")

MOU and Exclusivity for oil production asset in Kazakhstan

Zenith Energy Ltd. (LSE: ZEN; OSE: ZENA), the international energy
production and development company, is pleased to announce that it has signed
an MOU (the "MOU") with a company incorporated in Kazakhstan (the "Seller")
giving the Company a period of exclusivity for a duration of ninety days to
evaluate a potential acquisition.

The Seller holds a 100% interest in an oil production asset located in the
Atyrau Region of Kazakhstan (the "Potential Acquisition").

The Potential Acquisition formerly produced at a rate of approximately 600
barrels of oil per day prior to the onset of the COVID-19 pandemic. Production
is currently suspended.

The purpose of the MOU is to formalise a framework whereby Zenith's interest
in the Potential Acquisition may be completed subject to the completion of a
rigorous technical and financial due diligence.

According to the terms of the MOU, commercial terms for the Potential
Acquisition, if agreed between the parties, are to be formalised by way of a
share purchase agreement on or before November 30, 2023.

The 2P (proven and probable) reserves of the Potential Acquisition have been
quantified in the amount of approximately 4 million barrels of oil. This
evaluation has not been performed in accordance with Canadian securities laws,
specifically the COGE Handbook and National Instrument 51-101 - Standards of
Disclosure for Oil and Gas Activities.

Andrea Cattaneo, Chief Executive Officer, commented:

"The Potential Acquisition in Kazakhstan represents an exciting opportunity
for Zenith to potentially acquire an asset with significant revenue generation
potential in a new jurisdiction, widely regarded as favourable for junior
energy production and development companies.

Our management team is now concentrated on completing a comprehensive
technical, financial, and legal due diligence with the objective of
potentially formalising a deal on or before November 30, 2023.

The Potential Acquisition is expected to complement our business development
activities in the USA, which are advancing at pace, and evidence our
consistent strategic focus on production and development opportunities in
stable jurisdictions.

It is important to underline that we have no plans to issue equity to fund the
Potential Acquisition, or its immediate development in the event a transaction
is successfully completed.

We look forward to providing further updates about the Potential Acquisition
and other business development activities in due course."

 

 

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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