TIDMZEN
RNS Number : 6256L
Zenith Energy Ltd
09 September 2019
September 9, 2019
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")
Successful Drilling Results
Zenith Energy Ltd., ("Zenith" or the "Company"), (LSE: ZEN;
TSX.V: ZEE; OSE: ZENA-ME), the international oil & gas
production company operating the largest onshore oilfield in
Azerbaijan, is pleased to provide an update regarding drilling
operations at well C-37 in the Jafarli oilfield.
The Company confirms that the deepening of well C-37 has
successfully identified three untapped oil-bearing clastic layers
in the Middle Eocene formation with a total net pay zone of
approximately 16 metres.
Oil and gas shows recorded during drilling of these intervals
have indicated the presence of favourable reservoir facies. Zenith
is currently performing a series of wireline logs to enable a
detailed evaluation of which intervals to perforate after the well
is cased and cemented. Flow rates will be communicated once the
well is placed on production.
The Company confirms that it has achieved its second objective
of successfully drilling well C-37 to a total depth of 4,350 metres
to test the Upper Cretaceous formation. This has evidenced a
sequence of clay and carbonate facies which require further
evaluation through wireline logs in order to ascertain the presence
of possible oil-bearing reservoirs.
Preparatory work at well C-30
In line with Zenith's work programme, and further encouraged by
the preliminary results achieved in the Middle Eocene formation of
well C-37, the Company can confirm that civil works at well C-30
are expected to begin shortly.
Andrea Cattaneo, Chief Executive Officer of Zenith,
commented:
"The first indications we have received from drilling operations
at well C-37 are very encouraging. The approximately 16 metres of
net pay zone we have identified confirm our confidence in the
productivity of the Middle Eocene formation, historically a strong
producer across our Azerbaijan asset, and the merits of deepening
well C-37 in order to materially increase our daily production of
oil.
I am also delighted with the performance of Zenith's service
company subsidiary, Zena Drilling, during its first operational
activities in Azerbaijan with our recently acquired 1,200hp
drilling rig. We expect the speed of execution and efficiency of
Zena to progressively optimise as we go forward in implementing our
systematic drilling programme in Azerbaijan.
We look forward to completing operations at well C-37, and to
communicating flow rates to the market as soon as they are
determined."
Further Information:
Zenith Energy Ltd
Andrea Cattaneo, Chief Executive Tel: +1 (587) 315 9031
Officer
-----------------------------
E-mail: info@zenithenergy.ca
-----------------------------
Peterhouse Capital - Joint Broker Tel: + 44 (0) 207 469
0930
-----------------------------
Lucy Williams
-----------------------------
Charles Goodfellow
-----------------------------
Novum Securities Limited - Joint Tel: + 44 (0) 207 399
Broker 9400
-----------------------------
Charlie Brook-Partridge
-----------------------------
Hugh McAlister
-----------------------------
IFC Advisory Limited - Financial Tel: + 44 (0) 203 934
PR & IR 6630
-----------------------------
Graham Herring
-----------------------------
Zach Cohen
-----------------------------
Notes to Editors:
Zenith Energy Ltd. is an international oil and gas production
company, listed on the TSX Venture Exchange (TSX.V:ZEE) and London
Stock Exchange (LSE:ZEN). In addition, the Company's common share
capital was admitted to trading on the Merkur Market of the Oslo
Børs (ZENA:ME) on November 8, 2018. The Merkur Market is a
multilateral trading facility owned and operated by the Oslo
Børs.
The Company was assigned a medium to long-term issuer credit
rating of "B+ with Positive Outlook" on October 8, 2018 by Arc
Ratings, S.A.
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 Republic of Azerbaijan, 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, 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.
Forward-looking statements
This news release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "objective", "ongoing",
"may", "will", "project", "should", "believe", "plans", "intends"
and similar expressions are intended to identify forward-looking
information or statements. More particularly and without
limitation, this press release contains forward-looking statements
about the potential oil production increases achieved as a result
of drilling operations in certain of the Company's wells. The
forward-looking statements and information are based on certain key
expectations and assumptions made by Zenith, including the ability
to execute its strategy and realise its growth opportunities
including its ability to finance and execute its plans. Although
Zenith believes that the expectations and assumptions on which such
forward-looking statements and information are based are
reasonable, undue reliance should not be placed on the
forward-looking statements and information because the Company can
give no assurance that they will prove to be correct. All timing
given in this announcement, unless stated otherwise is indicative
and while the Company endeavours to provide accurate timing to the
market, it cautions that due to the nature of its operations and
reliance on third parties this is subject to change often at little
or no notice. By its nature, such forward-looking information is
subject to certain risks and uncertainties (both general and
specific) that could cause actual events or outcomes to differ
materially from those anticipated or implied by such
forward-looking statements. These risks and uncertainties include,
but are not limited to, Zenith being unable to finance or realise
growth opportunities. Readers are cautioned not to place undue
reliance on this forward-looking information, which is given as of
the date hereof, and to not use such forward-looking information
for anything other than its intended purpose. Zenith undertakes no
obligation to update publicly or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, except as required by law. The forward-looking
information contained herein is expressly qualified by this
cautionary statement.
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
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