TIDMZEN
RNS Number : 3273S
Zenith Energy Ltd
25 June 2018
June 25, 2018
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 ("MAR"). Upon
publication of this announcement via a regulatory information
service ("RIS"), the inside information contained in this document
is now considered to be in the public domain.
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Signing of Commitment Letter for Genesis BQ500 2000HP Drilling
Rig
Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; TSX.V:
ZEE), the dual listed international oil & gas production
company operating the largest onshore oilfield in Azerbaijan, is
pleased to announce that its oilfield service company subsidiary,
Zena Drilling Limited, ("Zena"), has signed a revised commitment
letter (the "Commitment Letter") for the operating lease of a
Genesis BQ500 onshore drilling rig with Olieum Services WLL
("Olieum"), an integrated oilfield services and equipment joint
venture based in Bahrain.
The Genesis BQ500 ("BQ500") is a 2000HP automated hydraulic
drilling rig built by B Robotics W S.r.l., ("Robotics"), a leading
Italian drilling rig manufacturer based in Piacenza.
The Company had communicated to the market that it had signed a
commitment letter with Olieum for a BQ500 drilling rig on November
1, 2017.
On June 22, 2018, Zena signed a Commitment Letter, superseding
the aforementioned commitment letter signed on November 1, 2017,
for the operating lease of a BQ500 drilling with Olieum. The
Commitment Letter includes more favourable terms for the Company in
a number of areas.
Key terms of the Commitment Letter:
- Six-year operating lease of a BQ500 2000HP automated hydraulic
drilling rig
- Option to renew the operating lease for a further six years
upon completion of the first six-year term
- The BQ500 shall be gifted to the Company once all payments are
made during an operating lease period of twelve years
- Six-month 'grace period' starting from the beginning of
drilling operations using the BQ500 during which time the Company
will not pay any leasing costs
Technical Overview of the BQ500
- 2000HP automated hydraulic onshore drilling rig
- Drilling depth capacity of up to 6,300 metres
- Full rig-up takes up to 48 hours to complete with no cranes
required. Average rigging up time for drawworks drilling rigs of
this size is 12-16 days
- 360-degree walking system
- Static hook load capacity of 450 metric tons
- Top drive tripping speed: 1.5 metres/sec. By comparison, the
average speed of conventional drawworks drilling rigs is
approximately 0.5-0.6 metres/sec
- Improved transportation capabilities with a reduction of
approximately 50% in loads over conventional drilling rigs
- Two AC driven 1600HP mud pumps
- 'Hands-free' drilling and tripping ensures an optimisation of
safety as no manual intervention is required for these tasks
- Crew of four technicians working 12-hour shifts
- Seven tank mud system
The BQ500 is expected to deliver enhanced automation, efficiency
and safety to the Company's drilling operations, whilst driving
down costs and time-to-production. This has largely been achieved
through extensive research and development in modular rig design,
and in key components including the monkey board, slips, lay-up and
down machine, pipe containers, roughneck, subs and bits loader, and
all the working floor tools.
The Company will comply with all applicable procurement
protocols in preparation for the scheduled delivery of the BQ500
rig December 2018.
Andrea Cattaneo, Chief Executive Officer of Zenith,
commented:
"We are continuing to implement our stated intention of
operating the key equipment required for the long-term development
of our asset portfolio. As detailed in our 2018 CPR, we have proven
plus probable (2P) reserves of approximately 31.7 million barrels
to produce for the duration of our REDPSA agreement in Azerbaijan
and 16.4 BCF of 2P natural gas reserves in Italy. As announced
previously, our ongoing geological study has identified a number of
highly promising drilling locations which the Company will be
finalising in the lead-up to the beginning of drilling activities
later this year.
I look forward to inviting Zenith investors to view the rig's
assembly at the Robotics factory as construction progresses in the
months ahead and, more importantly, when it arrives on location
later this year."
For further information please contact:
Zenith Energy Ltd.
Andrea Cattaneo
Chief Executive Officer
E-mail: info@zenithenergy.ca
Tel: +1 (587) 315 9031
Vigo Communications - PR Adviser
Patrick d'Ancona
Chris McMahon
Kate Rogucheva
Tel: +44 (0) 20 7830 9700
Daniel Stewart & Company Plc - (Joint Broker)
Robert Emmet- Corporate Broking
Nikhil Varghese- Corporate Finance
Tel: + 44 (0) 207 776 6550
Optiva Securities - (Joint Broker)
Christian Dennis
Tel: + 44 (0) 203 137 1903
Allenby Capital Limited - (Financial Adviser)
Nick Harriss
Nick Athanas
Tel: + 44 (0) 203 328 5656
Notes to Editors:
Zenith Energy Ltd. is an international oil and gas production
company, dual listed on the TSX Venture Exchange and London Stock
Exchange.
The Company operates the largest onshore oilfield in Azerbaijan
following the signing of a 25-year REDPSA, (Rehabilitation,
Exploration, Development and Production Sharing Agreement), with
SOCAR, State Oil Company of the Azerbaijan Republic, in 2016.
The Company's primary focus is the development of its Azerbaijan
operations by leveraging its technical expertise and financial
resources to maximise low-cost oil production via a systematic
field rehabilitation programme intended to achieve significantly
increased revenue. Zenith also operates, or has working interests
in, a number of natural gas production concessions in Italy. The
Company's Italian operations produce natural gas, natural gas
condensate and electricity.
Zenith's development strategy is to identify and rapidly seize
value-accretive hydrocarbon production opportunities in the onshore
oil & gas sector. The Company's Board of Directors and senior
management team have the experience and technical expertise to
develop the Company successfully.
To find out more, visit www.zenithenergy.ca or follow Zenith on
Twitter @zenithenergyltd
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 or visit www.rns.com.
END
CNTLZLLLVQFZBBD
(END) Dow Jones Newswires
June 25, 2018 02:01 ET (06:01 GMT)
Zenith Energy (LSE:ZEN)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
Zenith Energy (LSE:ZEN)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024