TIDMZEN
RNS Number : 8243J
Zenith Energy Ltd
30 June 2017
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Reserve Update & Exercise of Warrants
Calgary, Alberta, June 30, 2017, Zenith Energy Ltd., ("Zenith"
or the "Company") (LSE: ZEN; TSX.V: ZEE) the dual listed
international energy production company, is pleased to announce
that:
1. ZENITH FILES YEAR-END INDEPENDENT RESERVES EVALUATION
Zenith has filed its year-end independent evaluation of reserves
for the year ending March 31, 2017, prepared in accordance with
National Instrument 51-101, on SEDAR.
The following is a summary of the oil and natural gas reserves
and the value of future net revenue of Zenith Energy Ltd. (the
"Company") as evaluated by Chapman Petroleum Engineering Ltd.,
Calgary, Alberta, Canada as at March 31, 2017, and dated June 26,
2017 (the "Chapman Report"). Chapman Petroleum Engineering Ltd. is
an independent qualified reserves evaluator and auditor.
These results were filed on SEDAR on June 27, 2017 in accordance
with TSX rules.
All evaluations of future revenue are after the deduction of
future income tax expenses, unless otherwise noted in the tables,
royalties, development costs, production costs and well abandonment
costs but before consideration of indirect costs such as
administrative, overhead and other miscellaneous expenses. The
estimated future net revenue contained in the following tables does
not necessarily represent the fair market value of the Company's
reserves. There is no assurance that the forecast price and cost
assumptions contained in the Chapman Report will be attained and
variances could be material. Other assumptions and qualifications
relating to costs and other matters are included in the Chapman
Report. The recovery and reserves estimates on the Company's
properties described herein are estimates only. The actual reserves
on the Company's properties may be greater or less than those
calculated.
sUMMARY OF oil and gas reserves
BASED ON forecast prices and costs
AS AT MArch 31, 2017
Company Reserves(1)
---------------------------------------------------------------------------------
AZERBAIJAN Light and Medium Oil Heavy Oil Natural Gas(9) Natural Gas Liquids
----------------------- ------------- ----------------- ----------------------
Gross Net Gross Net Gross Net Gross Net
Reserves Category MSTB MSTB MSTB MSTB MMscf MMscf Mbbl Mbbl
----------------------- ----------- ---------- ------ ----- -------- ------- ----------- ---------
PROVED
Developed
Producing(2)(4) 424 424 0 0 0 0 0 0
Developed
Non-Producing(2)(5) 0 0 0 0 0 0 0 0
Undeveloped(2)(6) 3,741 3,741 0 0 0 0 0 0
TOTAL PROVED(2) 4,166 4,166 0 0 0 0 0 0
TOTAL PROBABLE(3) 27,938 27,938 0 0 0 0 0 0
----------- ---------- ------ ----- -------- ------- ----------- ---------
TOTAL PROVED +
PROBABLE(2)(3) 32,103 32,103 0 0 0 0 0 0
=========== ========== ====== ===== ======== ======= =========== =========
Company Reserves(1)
---------------------------------------------------------------------------------
ITALY Light and Medium Oil Heavy Oil Natural Gas(9) Natural Gas Liquids
----------------------- ------------- ----------------- ----------------------
Gross Net Gross Net Gross Net Gross Net
Reserves Category MSTB MSTB MSTB MSTB MMscf MMscf Mbbl Mbbl
----------------------- ------------ --------- ------ ----- -------- ------- ----------- ---------
PROVED
Developed
Producing(2)(4) 0 0 0 0 1,300 1,300 18 18
Developed
Non-Producing(2)(5) 0 0 0 0 118 118 0 0
Undeveloped(2)(6) 0 0 0 0 0 0 0 0
TOTAL PROVED(2) 0 0 0 0 1,148 1,418 18 18
TOTAL PROBABLE(3) 0 0 0 0 13,948 13,948 223 223
------------ --------- ------ ----- -------- ------- ----------- ---------
TOTAL PROVED +
PROBABLE(2)(3) 0 0 0 0 15,366 15,366 241 241
============ ========= ====== ===== ======== ======= =========== =========
Notes:
1. "Gross Reserves" are the Company's working interest
(operating or non-operating) share before deducting of royalties
and without including any royalty interests of the Company. "Net
Reserves" are the Company's working interest (operating or
non-operating) share after deduction of royalty obligations, plus
the Company's royalty interests in reserves.
2. "Proved" reserves are those reserves that can be estimated
with a high degree of certainty to be recoverable. It is likely
that the actual remaining quantities recovered will exceed the
estimated proved reserves.
3. "Probable" reserves are those additional reserves that are
less certain to be recovered than proved reserves. It is equally
likely that the actual remaining quantities recovered will be
greater or less than the sum of the estimated proved plus probable
reserves.
4. "Developed Producing" reserves are those reserves that are
expected to be recovered from completion intervals open at the time
of the estimate. These reserves may be currently producing or, if
shut-in, they must have previously been on production, and the date
of resumption of production must be known with reasonable
certainty.
5. "Developed Non-Producing" reserves are those reserves that
either have not been on production, or have previously been on
production, but are shut in, and the date of resumption of
production is unknown.
6. "Undeveloped" reserves are those reserves expected to be
recovered from know accumulations where a significant expenditure
(for example, when compared to the cost of drilling a well) is
required to render them capable of production. They must fully meet
the requirements of the reserves classification (proved, probable,
possible) to which they are assigned.
These results can be viewed online at www.sedar.com and will
also shortly be available for review at www.zenithenergy.ca
2. ISSUE AND ADMISSION OF NEW SHARES
An investor in the Company has exercised warrants to acquire
1,019,250 new common shares of no par value (the "Warrant Shares")
in the capital of the Company. The exercise price of the warrant
was C$0.15 per share, and the total consideration received
C$152,887.50 (approximately GBP90,800).
The Warrant Shares were issued on June 29, 2017 by the
registrars in Canada.
An application will be made for the Warrant Shares to be
admitted to trading on the Main Market of the London Stock
Exchange, and for them to be listed on the Standard Segment of the
UK Official List, both with effect from July 7, 2017
("Admission").
Total Voting Rights
Following Admission, the Company will have 117,596,480 Common
Shares in issue and admitted to trading on the Main Market of the
London Stock Exchange and the Toronto Stock Exchange Venture
Exchange. The above figure 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
change to their interest in, the share capital of the Company under
the Financial Conduct Authority's Disclosure Guidance and
Transparency Rules.
For further information, please contact:
José Ramón López-Portillo
Chairman
Andrea Cattaneo
CEO & President
Email: info@zenithenergy.ca
Telephone: +1 (587) 315 9031
Telefax: +1 (403) 775-4474
Allenby Capital Limited - (Joint Broker)
Nick Harriss
Nick Athanas
Richard Short
Telephone: + 44 (0) 203 328 5656
Optiva Securities - (Joint Broker)
Christian Dennis
Telephone: + 44 (0) 203 137 1903
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCBRGDLLBXBGRG
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