TIDMZEN
RNS Number : 1365G
Zenith Energy Ltd
22 July 2021
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF REGULATION 11 OF THE MARKET ABUSE (AMMENT) (EU EXIT) REGULATIONS
2019/310.
July 22, 2021
ZENITH ENERGY LTD.
("Zenith" or the "Company")
2021 Competent Person's Report
Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; OSE:
ZENA), the listed international oil & gas production company
focused on pursuing African development opportunities, is pleased
to announce that Chapman Petroleum Engineering Ltd ("Chapman"),
Zenith's independent qualified reserves evaluator, has produced a
new independent evaluation of reserves for the year ended March 31,
2021 (the "2021 CPR"), prepared in accordance with National
Instrument 51-101: Standards of Disclosure for Oil and Gas
Activities, as detailed in the Canadian Oil and Gas Evaluation
Handbook.
Chapman has assessed Zenith's proved plus probable reserves
("2P") for its existing portfolio in Italy and Tunisia as
approximately 6,274 MBOE.
The 2021 CPR is available for download on the Company's website:
www.zenithenergy.ca and as an attachment to this annoucement.
http://www.rns-pdf.londonstockexchange.com/rns/1365G_1-2021-7-22.pdf
Andrea Cattaneo, Chief Executive Officer of Zenith,
commented:
"The 2021 CPR clearly displays the strong development potential
made possible by Zenith's reserves across its existing portfolio,
specifically the significant value generation that might be
achieved as we seek to maximise our production of crude oil and
natural gas by way of workover and drilling activities.
It is important to underline that the 2021 CPR has not included
an assessment of the 2P reserves for our conditional 45% interest
in the Sidi El Kilani oilfield in Tunisia due to completion not yet
having been achieved, as well as the reserves of the potential
award of the Tilapia II permit in the Republic of the Congo. A new
CPR document will be published once potential completion of these
acquisitions is made, resulting in an expected increase of
approximately more than double our existing reserves assessed in
the 2021 CPR."
All assumptions and qualifications relating to costs and other
matters are included in the 2021 CPR. The recovery and reserves
estimates on the Company's assets described herein are estimates
only. The actual reserves in the Company's assets may be greater or
smaller than those calculated.
The following is a summary of the oil and natural gas reserves
and the value of future net revenue of the Company, as evaluated by
Chapman as at March 31, 2021, and dated April 1, 2021 .
sUMMARY OF oil and gas reserves
BASED ON forecast prices and costs
AS AT MArch 31, 2021
Company Reserves (1)
------------------------------------------------------------------------------------------------------------------------------------------------------
ITALY Light and Medium Oil Heavy Oil Conventional Natural Gas Liquids
------------------------------------- ------------------------------------ ------------------------------------
Natural Gas (9)
------------------ ----------------- ----------------- ----------------- ----------------------------------- ----------------- -----------------
Gross Net Gross Net Gross Net Gross Net
Reserves Category MSTB MSTB MSTB MSTB MMscf MMscf Mbbl Mbbl
------------------ ----------------- ----------------- ----------------- ---------------- ----------------- ----------------- -----------------
PROVED
Developed
Producing(2)(6) - - - - 876 876 11 11
Developed
Non-Producing(2)(7) - - - - 115 115 - -
Undeveloped(2)(8) - - - - - - - -
----------------
TOTAL PROVED (2) - - - - 991 991 11 11
TOTAL PROBABLE (3) - - - - 14,921 14,921 241 241
------------------ ----------------- ----------------- ----------------- ---------------- ----------------- ----------------- -----------------
TOTAL PROVED +
PROBABLE (2)(3) - - - - 15,912 15,912 252 252
------------------ ----------------- ----------------- ----------------- ---------------- ----------------- ----------------- -----------------
Company Reserves (1)
----------------------------------------------------------------------------------------------------------------------------------------------------
TUNISIA Light and Medium Oil Heavy Oil Conventional Natural Gas Liquids
----------------------------------- ---------------------------------- --------------------------------------
Natural Gas (9)
----------------- ---------------- ---------------- ---------------- ----------------------------------- ---------------- --------------------
Gross Net Gross Net Gross Net Gross Net
Reserves Category MSTB MSTB MSTB MSTB MMscf MMscf Mbbl Mbbl
----------------- ---------------- ---------------- ---------------- ---------------- ----------------- ---------------- --------------------
PROVED
Developed
Producing(2)(6) 260 242 - - - - - -
Developed - - - - - - - -
Non-Producing(2)(7)
Undeveloped(2)(8) - - - - - - - -
----------------
TOTAL PROVED (2) 260 242 - - - - - -
TOTAL PROBABLE (3) 3,110 2,593 - - - - - -
----------------- ---------------- ---------------- ---------------- ---------------- ----------------- ---------------- --------------------
TOTAL PROVED +
PROBABLE (2)(3) 3,370 2,835 - - - - - -
----------------- ---------------- ---------------- ---------------- ---------------- ----------------- ---------------- --------------------
The tables above are summaries of the reserves of Zenith as
evaluated in the Chapman Report. As the tables summarise the data
contained in the Chapman Report, they may contain slightly
different numbers due to rounding. As such, the numbers in each
column may not exactly add up. Please also review all of the
advisories and definitions below in tandem with the above
tables.
Oil and Natural Gas Reserves
The disclosure in this news release summarises certain
information contained in the Chapman Report but represents only a
portion of the disclosure required under NI 51-101. Full disclosure
with respect to the Company's reserves as at March 31, 2021 has
been filed on SEDAR (www.sedar.com). The reserves definitions used
in this evaluation are the standards defined by COGEH reserve
definitions and consistent with NI 51-101 and used by Chapman. The
oil reserves are presented in thousands of barrels, at stock tank
conditions.
Reserves Categories
Reserves are estimated remaining quantities of oil and natural
gas and related substances anticipated to be recoverable from known
accumulations, as of a given date, based on (i) analysis of
drilling, geological, geophysical and engineering data; (ii) the
use of established technology; and (iii) specified economic
conditions, which are generally accepted as being reasonable, and
shall be disclosed. Reserves are classified according to the degree
of certainty associated with the estimates.
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. Proved reserves should have at least a
90 percent probability that the quantities actually recovered will
equal or 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. Probable reserves should have at least 50 per cent
probability that the quantities actually recovered will equal or
exceed the sum of the estimated proved plus probable reserves.
4. "Possible reserves" are those additional reserves that are
less certain to be recovered than probable reserves. It is unlikely
that the actual remaining quantities recovered will exceed the sum
of the estimated proved plus probable plus possible reserves.
Possible reserves should have at least a 10 percent probability
that the quantities actually recovered will equal or exceed the sum
of the estimated proved plus probable plus possible reserves.
5. "Developed reserves" are those reserves that are expected to
be recovered from existing wells and installed facilities or, if
facilities have not been installed, that would involve a low
expenditure (e.g. when compared to the cost of drilling a well) to
put the reserves on production.
6. "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.
7. "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.
8. "Undeveloped reserves" are those reserves expected to be
recovered from known 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.
9. Includes associated, non-associated and solution gas where applicable.
Further Information:
Zenith Energy Ltd
Andrea Cattaneo, Chief Executive Officer Tel: +1 (587) 315
9031
-----------------------------
E-mail: info@zenithenergy.ca
-----------------------------
Allenby Capital Limited - Financial
Adviser & Broker
-----------------------------
Nick Harriss Tel: + 44 (0) 203
Nick Athanas 328 5656
-----------------------------
Notes to Editors :
Zenith Energy Ltd. is an international oil and gas production
company, listed on the London Stock Exchange (LSE:ZEN) and the
Euronext Growth Market of the Oslo Stock Exchange (OSE:ZENA).
Zenith's development strategy is to identify and rapidly seize
value-accretive hydrocarbon production opportunities in the oil
& gas sector, specifically in Africa.
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