REG - Zenith Energy Ltd - Update on Italian Energy Production Portfolio

Zenith Energy (CA)Announcement

12/03/2024 18:00

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RNS Number : 5928G  Zenith Energy Ltd  12 March 2024

March 12, 2024

ZENITH ENERGY LTD.

("Zenith" or the "Company")

Update on Italian Energy Production Portfolio

Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; OSE: ZENA; OTCQB:
ZENAF), the listed international energy production and development company,
is pleased to announce the full completion of an acquisition in Italy, as well
as providing an update on its Italian energy production portfolio.

Acquisition of additional stake in Sant'Andrea natural gas production
concession ("Sant'Andrea")

The Company is pleased to announce that it has acquired, and received the
necessary final regulatory approvals, for the acquisition of an additional 10%
interest in Sant'Andrea (the "Acquisition") from Petrorep Italiana S.R.L.
("Petrorep").

Following completion of the Acquisition, Zenith's 40% interest in Sant'Andrea
has increased to 50%.

As previously announced, the Company plans to reactivate the S. Antonio-1 well
located in Sant'Andrea, with an expected initial production rate of
approximately 1,500 cubic metres of natural gas per day.

Under the terms of the acquisition, Petrorep has paid Zenith's Italian
subsidiary the amount of EUR 248,000 (approximately GBP 212,000 or NOK
2,850,000) to cover its share of future plugging and abandonment costs
calculated pro rata based on its participation in Sant'Andrea.

The Company is confident that production from Sant'Andrea will commence in
October 2024.

Zenith's partners in Sant'Andrea have communicated that they do not intend to
fund the costs associated with its reactivation. Zenith will therefore receive
full entitlement to the production revenue to be received from Sant'Andrea, as
well as bearing the full costs associated with the reactivation of production,
estimated in the amount of EUR 20,000.

Italian Electricity Production - Torrente Cigno Concession ("Torrente Cigno")

The Company continues to generate electricity at the Torrente Cigno with an
average monthly production of approximately 950 megawatt hours ("MWh").

Electricity prices averaged approximately EUR 96 per MWh during January 2024
and averaged approximately EUR 84 during the month of February 2024, resulting
in cumulative net revenues of approximately EUR 171,000 for the period.

Zenith's current net production costs remain fixed at approximately EUR
35,000 per month.

Andrea Cattaneo, Chief Executive Officer, commented:

"We are pleased to have increased our participation in Sant'Andrea which we
hope to bring to production later this year, creating an additional revenue
stream for the Company.

I am pleased to report that the Company is currently evaluating a potentially
significant additional acquisition in Italy, and I look forward to providing
updates in due course if negotiations prove successful."

Further Information:

 Zenith Energy Ltd

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

                                               E:       info@zenithenergy.ca (mailto:info@zenithenergy.ca)
 Allenby Capital Limited - Financial Adviser   Tel: + 44 (0) 203 328 5656

 Nick Harriss

 Daniel Dearden-Williams

 

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.

 

 

 

 

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