REG - Zenith Energy Ltd - Second MOU for oil production assets in Kazakhstan

Zenith EnergyAnnouncement

15/09/2023 09:30

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RNS Number : 6135M  Zenith Energy Ltd  15 September 2023

September 15, 2023

ZENITH ENERGY LTD.

("Zenith" or the "Company")

Second MOU for oil production assets in Kazakhstan

Zenith Energy Ltd. (LSE: ZEN; OSE: ZENA), the international energy
production and development company, is pleased to announce that it has signed
a second MOU (the "MOU") with a company incorporated in Kazakhstan (the
"Seller") to evaluate the potential acquisition of two oil development assets.

The Seller holds a 100% interest in two contiguous oil development assets
located in the Kyzylorda Region of Kazakhstan (the "Potential
Acquisition").

The Potential Acquisition is classified as an oil development asset because a
discovery was made in 2014, and there is confirmed potential for commercial
oil production activities. It is expected that drilling activities targeting
the Jurassic section of formations located within the Potential Acquisition
have significant production potential.

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 4.5 million barrels of oil. Fully
risked 3P (proven, probable, and possible) reserves are estimated around 62.5
million barrels of oil. These evaluations have not been performed
in compliance 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:

"We are pleased to have signed a second MOU for an oil development asset in
Kazakhstan. Zenith's management and advisers have, in line with our
development strategy, continued to explore additional acquisition
opportunities with the objective of building a consolidated portfolio of
near-term production and development assets.

The assets under review appear to have a clear pathway to oil production
without the requirement for intensive technical and financial investment.

Funding of any potential transaction in Kazakhstan will not to be funded by
way of equity.

We look forward to reporting on our exciting progress in Kazakhstan on or
before the close of November 2023."

 

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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