TIDMZEN
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 C OGE
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 ).
Further Information:
Zenith Energy Ltd
Tel: +1 (587) 315 1279
Andrea Cattaneo, Chief Executive E: info@zenithenergy.ca
Officer
BlytheRay - Financial PR/IR Tel: +44 207 138 3204
Tim Blythe, Megan Ray, Matt E: zenith@blytheray.com
Bowld
Allenby Capital Limited - Financial Tel: + 44 (0) 203 328 5656
Adviser
Nick Harriss
Daniel Dearden-Williams
Miriad Limited - Media Enquiries Tel: +44 7867527659
Zak Mir E: 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
Twitter: @zenithenergyltd
LinkedIn: 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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END
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July 05, 2023 06:35 ET (10:35 GMT)
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