REG - Zenith Energy Ltd - Update on Legal Claim against SMP

Zenith EnergyAnnouncement

04/10/2024 09:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241004:nRSD9918Ga&default-theme=true

RNS Number : 9918G  Zenith Energy Ltd  04 October 2024

October 4, 2024

ZENITH ENERGY LTD.

("Zenith" or the "Company")

Update on Legal Claim against SMP

Zenith Energy Ltd. (LSE: ZEN; OSE: ZENA; OTCQB: ZENAF), the listed
international energy production and development company, is pleased to provide
an update regarding the legal claim being brought before the Paris Commercial
Court (the "Court") by its fully owned subsidiary, Anglo African Oil & Gas
Congo S.A.U ("AAOGC") against SMP Energies (hereafter "SMP",
formerly Société de Maintenance Pétrolière - SMP) the rig contractor that
performed drilling services in wells TLP-103 and TLP-103C of the Tilapia
oilfield during 2018-2019.

On February 17, 2023, Zenith announced that it had increased the claimed
amount for SMP's failures during drilling activities to US$9 million in
consideration of the significant commercial damages suffered by AAOGC,
specifically the impossibility, as a direct result, to begin production
activities from the Tilapia oilfield.

The Company believes that the Claim launched by AAOGC has merit because of the
significant evidence collected at the time to substantiate its position. AAOGC
has since intensified its legal activities in support of the Claim by
commissioning third-party expert reports.

As announced on July 3, 2023, the Court rejected SMP's request for a stay of
proceedings in France due to new proceedings having been initiated in
the Republic of Congo, stating that SMP's request contained "all the
characteristics of a dilatory request", and ordered SMP to pay an amount
of EUR 30,000 to AAOGC as procedural costs (the "Procedural Costs").

 

SMP unsuccessfully appealed the decision of the Court. As a result, the
Company is pleased to confirm that the Paris Court of Appeal upheld the
decision of the Paris Commercial Court and that AAOGC has now received
payment in the amount of approximately EUR 30,000.

 

The Company has appointed Charles Russell Speechlys as new legal counsel
before the Court in connection with the legal claim against SMP. The final
submission for court pleadings is expected to take place on October 25,
2024.

 

The final pleadings of the case, resulting in a potential positive ruling in
favour of AAOGC by the Court, are expected to now take place on or around
March 2025.

Andrea Cattaneo, Chief Executive of Zenith, commented:

 "We are pleased by the decision of the Appeal Court, confirming the dilatory
conduct of SMP who has made every effort to delay and protract legal
proceedings to the detriment of AAOGC.

The Company will now proceed in presenting its final submissions with the aid
of expert technical consultants to maximise the possibilities of a favourable
decision that will compensate AAOGC for the very significant commercial
damages it suffered because of failures ascribable to SMP."

 

Further Information:

 Zenith Energy Ltd

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

                                            E:       info@zenithenergy.ca (mailto:info@zenithenergy.ca)

Notes to Editors:

Zenith Energy Ltd. is a revenue generating, independent energy company with
energy production, exploration and development assets in North Africa, the US
and Europe. The Company is listed on the London Stock Exchange Main Market
(LSE: ZEN), the Euronext Growth of the Oslo Stock Exchange (OSE: ZENA) and
the Venture Market of the OTCQB (OTCQB: ZENAF).

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.

 

 

 

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCUSSBRSSURRRA