January 4, 2022        

ZENITH ENERGY LTD.

("Zenith" or the "Company")

Update on record profitability of Italian electricity production

Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; OSE: ZENA), the listed international energy production and development company, is pleased to provide an update on its electricity generation activities at the Torrente Cigno concession in Italy, which have achieved a new record level of profitability due to the sustained favourable energy pricing climate. 

New record profitability of electricity generation operations 

During the month of December 2021, the Company produced a total of approximately 1,020 MWh, the highest production rate recorded during the past 12 months, following the performance of targeted maintenance work during the month of November 2021 to optimise the efficiency of the electricity generation infrastructure.  

Electricity prices during the month of December 2021 averaged approximately EUR 264 per MWh, resulting in net revenues of approximately EUR 269,000 per month. The current net production costs remain fixed at approximately EUR 35,000 per month. 

Luca Benedetto, Chief Financial Officer and Managing Director of Italian operations, commented: 

"The remarkable performance of our Italian electricity production operations was an extremely positive development during the second part of last year and continues to exceed expectations by providing increasingly significant cashflow to support the further development of Zenith's Italian portfolio.

We shall look to expand our Italian portfolio during 2022 by way of potential acquisitions, as well as by enhancing the productivity of certain assets within our portfolio, which hold a number of highly prospective development opportunities, starting with the further development of the Torrente Cigno concession."

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.

Further Information: 

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 complete value-accretive hydrocarbon production opportunities in the oil & gas sector, specifically in Africa.