TIDMZEN

RNS Number : 4199V

Zenith Energy Ltd

30 January 2017

ZENITH ISSUES EQUITY TO ACCELERATE WORKOVER PROGRAMME

Calgary, Alberta-January 30, 2017- Zenith Energy Ltd. ("Zenith" or the "Company") is pleased to announce that, as a result of market demand, the Company has entered into an agreement to proceed with a brokered private placement (the "Private Placement") to raise gross proceeds of GBP855,000 (approximately CDN$ 1,408,000) through the issue of nine million (9,000,000) new common shares of the Company ("New Common Shares") at a price of GBP0.095 (approximately CDN$ 0.1565) per share.

In addition to the New Common Shares, under the Private Placement, each subscriber will receive one warrant ('the Warrant") for every New Common Share purchased. Each Warrant shall entitle the Warrant holder to subscribe for New Common Shares in the Company at a price of GBP0.15 per common share (approximately CDN$ 0.247), exercisable at any time until 1 February 2019.

The Private Placement follows the successful dual listing of the Company on the Main Market of the London Stock Exchange on 11 January 2017 when Zenith raised GBP2,332,550 before expenses via the issue of 33,322,143 common shares. The proceeds of the Private Placement will be used to accelerate the Company's field rehabilitation activities in Azerbaijan and increase the number of well workovers scheduled for completion by 31 March 2018.

The New Common Shares will comprise approximately 8.088% (eight point zero eighty-eight per cent) of the Company's enlarged issued share capital, and are anticipated to be issued as depository interests in CREST in the United Kingdom. Application will be made for the New Common Shares to be admitted to the standard segment of the Official List of the Financial Conduct Authority and to trading on the Main Market for listed securities of the London Stock Exchange (the "Admission"). It is expected that Admission will become effective and unconditional dealings in the New Common Shares will commence on or around 8.00am 2 February 2017.

Following Admission, the Company's issued share capital will comprise 111,264,867 common shares with one voting right per share. No shares are held in Treasury. The total number of voting rights in the Company will therefore be 111,264,867.

This figure of 111,264,867 common shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company.

The transaction is subject to the Approval of the TSXV in Canada and of the Main Market of the London Stock Exchange in the United Kingdom.

Andrea Cattaneo, CEO of Zenith, commented:

"The Board of Directors is pleased with the Company's share price performance and liquidity in the period following Zenith's successful dual listing on the Main Market of the London Stock Exchange on 11 January 2017. This has validated our confidence in the strengths and advantages of dual listing. I am pleased that there has been such demand from the market to support the Company's growth and I am of the view that there remains considerable scope for further Zenith market appreciation. This capital raising will provide additional funding for the Company's growth strategy, specifically with regards to the well workover programme in Azerbaijan. I look forward to updating the market on Zenith's progress in the months ahead."

About Zenith Energy Ltd.

Zenith Energy Ltd. is an international oil & gas production company, incorporated in Canada, listed on the London Stock Exchange (ZEN) and the TSX Venture Exchange (ZEE).

The main focus of the Company is the acquisition of large onshore oil & gas fields in countries that offer strong asset protection and a business atmosphere conducive to stable and profitable production activities.

Zenith operates the largest onshore oilfield in Azerbaijan through its fully owned subsidiary, has oilfields in Argentina and significant gas producing assets in Italy. The Company's Italian operations also include the production of electricity and condensate.

For further information, please contact:

José Ramón López-Portillo Andrea Cattaneo

Chairman of the Board CEO & President

   Email:               info@zenithenergy.ca 
   Telephone:        +1 (587) 315 9031 
   Telefax:            +1 (403) 775 4474

This information is provided by RNS

The company news service from the London Stock Exchange

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