TIDMZEN
RNS Number : 6320O
Zenith Energy Ltd
03 October 2019
October 3, 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")
Well C-37 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 overview of drilling results
at well C-37 in the Jafarli oilfield.
The Company can confirm that well C-37 has successfully been
drilled to a total depth of 4,350 metres accomplishing both its
operational objectives of penetrating the highly prospective,
unexploited intervals of the Middle Eocene formation, as well as
testing the fluid content of the previously unexplored Upper
Cretaceous (Mesozoic) formation.
As announced on September 9, 2019, three untapped oil-bearing
clastic layers were identified in the Middle Eocene formation
target zone, with a total net pay zone of approximately 16
metres.
Oil and gas shows recorded during drilling of these intervals
indicated the presence of favourable reservoir facies. These
findings were subsequently confirmed by a series of wireline logs
performed by the Company in order to determine the intervals to be
perforated in the Middle Eocene formation following the casing and
cementing of well C-37.
Wireline logging of the Upper Cretaceous formation target zone
has confirmed, although having gone through a series of tectonic
events, the consistence of clay and carbonate facies and provided
important indications surrounding the potential productivity of the
formation across the Company's Azerbaijan asset.
Having completed wireline logging, the Company proceeded to run
the casing with a liner hanger system to be followed by cementing
operations. During these operations, the liner hanger system failed
to set, making it impossible for the casing to be cemented. Zenith
is investigating the reasons for the liner hanger failure with the
manufacturer.
On account of the observed oil and gas shows from the Middle
Eocene formation and wireline logging, it was decided to perform a
cement plug operation to isolate the Upper Cretaceous formation and
put the well in openhole production from the Middle Eocene
formation.
The Company is currently evaluating a number of stimulation
interventions including acidification, as well as the possibility
of installing an ESP, to maximise production.
Initial testing of the well has indicated that well C-37, if
placed on full production, can produce up to 100 barrels of oil per
day with a water cut of approximately 50 percent. Zenith will
establish and communicate a stabilised flow rate to the market in
due course.
The Company will now perform a series of technical inspections
on its 1,200hp drilling rig prior to it being rigged down in
preparation for mobilisation to the next drilling location in the
Jafarli oilfield, well C-30.
Andrea Cattaneo, Chief Executive Officer of Zenith,
commented:
"The Board of Directors is delighted with the result at C-37.
Not only have we successfully concluded our first drilling
operation in Azerbaijan utilising our own rig, but we are also on
track to sizeably increase our daily production of oil. We now look
forward with confidence to drilling operations in well C-30, the
next well in our work programme, where all geological and technical
data suggests we might achieve an even stronger result."
Further Information:
Zenith Energy Ltd
Andrea Cattaneo, Chief Executive Tel: +1 (587) 315
Officer 9031
-----------------------------
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
Broker 399 9400
-----------------------------
Charlie Brook-Partridge
-----------------------------
Hugh McAlister
-----------------------------
IFC Advisory Limited - Financial Tel: + 44 (0) 203
PR & IR 934 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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