TIDMZEN
RNS Number : 2109P
Zenith Energy Ltd
09 October 2019
October 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")
C-37 Production Increases
Zenith Energy Ltd., ("Zenith" or the "Company"), (LSE: ZEN;
TSX.V: ZEE; OSE: ZENA-ME), the international oil & gas
production company operating onshore in Azerbaijan, is pleased to
provide an update on drilling results at well C-37 in the Jafarli
oilfield.
The Company can confirm that continued flow testing of the well
recorded a production rate of approximately 285 barrels of oil per
day, adding significant uplift to Zenith's total in country
production figure.
Yearly revenue of approximately US$5,500,000 is expected to be
generated from C-37, and a stabilised flow rate of 285 represents a
114% increase in the Company's daily oil production.
Further stimulation of the well, which may include swabbing
operations as well as the performance of nitrogen stimulation, may
further increase the rate of production. The Company will update
the market in due course regarding these operations.
C-30 Drilling Operations
Mobilisation of Zenith's 1,200hp drilling rig to the C-30 well
location is expected to take place before the end of October
2019.
Andrea Cattaneo, Chief Executive Officer of Zenith,
commented:
"We are pleased with the success we have achieved at well C-37.
The additional production, and associated net cash flow, is
extremely positive and indicates that we are progressing with our
strategy of materially increasing our oil production in Azerbaijan.
I look forward to updating investors in due course regarding the
mobilisation of our drilling rig to the C-30 well location."
Further Information:
Zenith Energy Ltd
Andrea Cattaneo, Chief Executive Tel: +1 (587) 315 9031
Officer
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E-mail: info@zenithenergy.ca
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Peterhouse Capital - Joint Tel: + 44 (0) 207 469
Broker 0930
-----------------------------
Lucy Williams
-----------------------------
Charles Goodfellow
-----------------------------
Novum Securities Limited - Tel: + 44 (0) 207 399
Joint Broker 9400
-----------------------------
Charlie Brook-Partridge
-----------------------------
Hugh McAlister
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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
DRLFSUEEAFUSEIS
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