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.
July 31, 2019
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Filing of Quarterly Results and Operational Update
Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; TSX.V: ZEE; OSE: ZENA-ME) the listed international oil & gas production company operating the largest onshore oilfield in Azerbaijan, is pleased to announce the filing of its consolidated quarterly results for the three months ended June 30, 2019 on SEDAR (www.sedar.com).
In accordance with Canadian securities laws, filing of the Company's quarterly results was performed on July 29, 2019. A copy of these documents will shortly be available for review on the Company's website: www.zenithenergy.ca.
Highlights for the three months ended June 30, 2019, include the following:
- The Company sold 20,233 (2018 - 23,495) barrels of oil from its assets in Azerbaijan, in the three months ended June 30, 2019.
- The Company sold 2,867 (2018 - 1,337) MCF of natural gas from its Italian production assets, in the three months ended June 30, 2019.
- The Company sold 2,779 (2018 - 2,684) MWh of electricity from its Italian assets, in the three months ended June 30, 2019.
- During the three months ended June 30, 2019, the Group incurred CAD$936k of Administrative Expenses compared to CAD$3,160k incurred in the 3 months ended June 30, 2018.
Well C-37 Operational Update
Zenith is pleased to confirm that C-37 well deepening operations began on July 26, 2019, as per the Company's announcement of July 18, 2019.
The Company can confirm that it has successfully retrieved well C-37's entire kill string amounting to approximately 1,000 meters of tubing.
The Company has subsequently begun the process of installing a new API standard 5,000 working pressure tubing spool complete with tubing hanger seat and a new wellhead. The Company has taken this decision in order to mitigate the risks of potential difficulties arising as a result of wellhead failures which had been encountered in previous operations.
A new BOP system, inclusive of an accumulator unit, choke manifold and remote controls will be subsequently connected as soon as the aforementioned installation is completed.
At the same time, the Company has initiated the preparation of drilling fluids in anticipation for the imminent beginning of drilling activities.
Zenith is pleased to report that no equipment failures have been registered and that all equipment associated with the BD-260 drilling rig has functioned as planned.
In addition, the Company can confirm that it has received all the necessary approvals from the local authorities for the beginning of drilling activities following a full rig inspection carried out on July 29, 2019.
Further updates will be provided to the market as appropriate.
Further Information:
Zenith Energy Ltd |
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Andrea Cattaneo, Chief Executive Officer |
Tel: +1 (587) 315 9031 |
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E-mail: [email protected] |
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Peterhouse Capital - Joint Broker |
Tel: + 44 (0) 207 469 0930 |
Lucy Williams |
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Charles Goodfellow |
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Novum Securities Limited - Joint Broker |
Tel: + 44 (0) 207 399 9400 |
Charlie Brook-Partridge |
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Hugh McAlister |
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IFC Advisory Limited - Financial PR & IR |
Tel: + 44 (0) 203 934 6630 |
Graham Herring |
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Miles Nolan |
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Zach Cohen |
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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 and information concerning well deepening operations on 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.
