REG - Zenith Energy Ltd - Second acquisition in USA

Zenith EnergyAnnouncement

05/07/2023 11:45

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RNS Number : 0718F  Zenith Energy Ltd  05 July 2023

July 5, 2023

ZENITH ENERGY LTD.

("Zenith" or the "Company")

Second acquisition in USA

Zenith Energy Ltd. (LSE: ZEN; OSE: ZENA), the international energy
production and development company, is pleased to announce that its newly
incorporated fully owned subsidiary in the State of Texas, Zena Oil & Gas
LLC, has conditionally agreed to fully acquire a portfolio of mineral leases
and oil and gas wells in the State of Texas, United States of America (the
"Acquisition") from the wholly owned subsidiaries of Beam Earth Group Ltd.
(the "Seller").

 

Terms of the Acquisition

 

The Company has conditionally agreed to fully acquire, subject to a definitive
purchase and sale agreement ("Completion") certain oil, gas, and mineral
leases and oil and gas wells for a total amount of US$1,027,500 (the
"Consideration").

 

The Consideration will be payable 60% in cash, representing the amount of
US$616,500, and the balance of 40% will be satisfied by the issuance of equity
to the Seller to be admitted to trading on the Euronext Growth of the Oslo
Stock Exchange, priced at the average closing price of the last 5 trading days
prior to the achievement of Completion (the "Equity Consideration"). Admission
will also be sought within 12 months of any issue under the Equity
Consideration to the Main Market of the London Stock Exchange and the Standard
Segment of the UK Official List.

 

The Seller have agreed to retain the Equity Consideration for a minimum of
three months from the date of Completion. Zenith will hold the right of first
refusal in the event of a possible disposal of the Equity Consideration,
subject to the terms to be agreed at Completion in the definitive purchase and
sale agreement.

 

 

Acquisition Highlights

 

·    The Acquisition comprises of 155 oil and gas wells located in the
vicinity of Midland (TX) across licences named Corsicana, Powell, BrookLaw and
Sun Valley.

·    47 wells are currently active with a daily production of
approximately 60 barrels of oil per day ("BOPD").

·    It is expected that production can be increased to an average rate of
100 BOPD with light workover and field rehabilitation activities within six
months from Completion.

·    Located in the State of Texas, a prolific oil and gas petroleum
system with favourable fiscal terms, relatively low production costs and the
ready availability of technical expertise and equipment.

·    Zenith will commission a Competent Person's Report in compliance with
Canadian securities laws, specifically the COGE Handbook and National
Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities - to
obtain an updated reserves evaluation for the Acquisition.

 

 

 

 

Andrea Cattaneo, Chief Executive Officer, commented:

 

"We are pleased to have conditionally agreed our second acquisition in the
USA.

 

Texas is a favourable oil and gas jurisdiction with many attractive qualities
for junior operators such as Zenith, specifically with regards to fiscal terms
and the availability of equipment and technical expertise.

 

We look forward with enthusiasm to commencing our activities in the State of
Texas, one of the areas in the world most synonymous with hydrocarbon
production activities.

 

It is our expectation that we shall soon achieve 'critical mass' by way of
additional acquisitions, selected following a rigorous due diligence process,
to successfully achieve Zenith's growth objectives."

About the Seller:

Beam is currently selling O&G assets to focus on service activities with a
strong impact on GHG emissions control and reporting (https://www.beam.earth
(https://www.beam.earth) ).

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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