Zenith Energy Ltd MOU and Exclusivity for asset in Kazakhstan (2846L)
September 04 2023 - 4:40AM
UK Regulatory
TIDMZEN
RNS Number : 2846L
Zenith Energy Ltd
04 September 2023
September 4, 2023
ZENITH ENERGY LTD.
("Zenith" or the "Company")
MOU and Exclusivity for oil production asset in Kazakhstan
Zenith Energy Ltd. (LSE: ZEN; OSE: ZENA), the international
energy production and development company, is pleased to announce
that it has signed an MOU (the "MOU") with a company incorporated
in Kazakhstan (the "Seller") giving the Company a period of
exclusivity for a duration of ninety days to evaluate a potential
acquisition.
The Seller holds a 100% interest in an oil production asset
located in the Atyrau Region of Kazakhstan (the "Potential
Acquisition").
The Potential Acquisition formerly produced at a rate of
approximately 600 barrels of oil per day prior to the onset of the
COVID-19 pandemic. Production is currently suspended.
The purpose of the MOU is to formalise a framework whereby
Zenith's interest in the Potential Acquisition may be completed
subject to the completion of a rigorous technical and financial due
diligence.
According to the terms of the MOU, commercial terms for the
Potential Acquisition, if agreed between the parties, are to be
formalised by way of a share purchase agreement on or before
November 30, 2023.
The 2P (proven and probable) reserves of the Potential
Acquisition have been quantified in the amount of approximately 4
million barrels of oil. This evaluation has not been performed in
accordance with Canadian securities laws, specifically the C OGE
Handbook and National Instrument 51-101 - Standards of Disclosure
for Oil and Gas Activities.
Andrea Cattaneo , Chief Executive Officer, commented:
"The Potential Acquisition in Kazakhstan represents an exciting
opportunity for Zenith to potentially acquire an asset with
significant revenue generation potential in a new jurisdiction,
widely regarded as favourable for junior energy production and
development companies.
Our management team is now concentrated on completing a
comprehensive technical, financial, and legal due diligence with
the objective of potentially formalising a deal on or before
November 30, 2023.
The Potential Acquisition is expected to complement our business
development activities in the USA, which are advancing at pace, and
evidence our consistent strategic focus on production and
development opportunities in stable jurisdictions.
It is important to underline that we have no plans to issue
equity to fund the Potential Acquisition, or its immediate
development in the event a transaction is successfully
completed.
We look forward to providing further updates about the Potential
Acquisition and other business development activities in due course
."
Further Information:
Zenith Energy Ltd
Tel: +1 (587) 315 1279
Andrea Cattaneo, Chief Executive E: info@zenithenergy.ca
Officer
BlytheRay - Financial PR/IR Tel: +44 207 138 3204
Tim Blythe, Megan Ray, Matt E: zenith@blytheray.com
Bowld
Allenby Capital Limited - Financial Tel: + 44 (0) 203 328 5656
Adviser
Nick Harriss
Daniel Dearden-Williams
Miriad Limited - Media Enquiries Tel: +44 7867527659
Zak Mir E: zak@zakmir.com
Notes to Editors :
Zenith Energy Ltd. is a revenue generating, independent energy
company with production, exploration and development assets in
Africa, the Middle East and Europe, including electricity
generation in Italy. The Company is listed on the London Stock
Exchange Main Market (LSE: ZEN) and the Euronext Growth of the Oslo
Stock Exchange (OSE: ZENA).
Zenith's strategic focus is on pursuing development
opportunities through the development of proven revenue generating
energy production assets, as well as low-risk exploration
activities in assets with existing production.
For more information, please visit: www.zenithenergy.ca
Twitter: @zenithenergyltd
LinkedIn: https://bit.ly/3A5PRJb
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK domestic law by virtue of the European Union (Withdrawal) Act
2018 ("MAR"). Upon the publication of this announcement via a
Regulatory Information Service ("RIS"), this inside information is
now considered to be in the public domain.
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END
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