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(Alliance News) - Zenith Energy Ltd on Tuesday said its subsidiary Zenith Energy Netherlands BC has agreed to acquire 100% of Yemen-focused oil producer OMV Exploration & Production GmbH's share capital in three companies.
The Calgary, Canada-based energy company with production, exploration and development assets in Africa and Europe said the three interests it agreed to acquire were in OMV (Yemen Block S 2) Exploration GmbH, OMV Jardan Block 3 Upstream GmbH and OMV Block 70 Upstream GmbH.
They are collectively known as OMV Yemen. Zenith Energy said OMV Yemen is one of the largest oil producers in the Middle Eastern country, with a highly prospective portfolio including a balance of immediate production, as well as a balance of short and long-term growth opportunities.
"The acquisition of OMV Yemen represents a very significant milestone for Zenith Energy," said Andrea Cattaneo, Zenith Energy's chief executive officer. "The existing production from the asset and, more importantly, the near-term future oil and natural gas production indicated by the size of the reserves, position Zenith on an extremely exciting organic growth trajectory."
"It is our belief that the country has extraordinary economic potential, especially in respect of its oil and gas industry, and we shall seek to maximise our relationship with the local authorities to achieve our development objectives."
It comes after Zenith Energy on Tuesday also said it concluded a share purchase agreement with Hingbo Industries Company Ltd for the sale of subsidiary shares.
Shares in the Canadian energy company were trading 21% higher at 0.94 pence each in London on Tuesday afternoon.
Under the terms of the agreement, Zenith sold a 51% interest in the issued, allotted, outstanding and fully paid-up share capital of its wholly-owned subsidiary, Zenith Energy Netherlands BV, for a "nominal" consideration.
The exact price of the sale was not disclosed.
Zenith Netherlands was previously dormant, with no assets.
"We are pleased to welcome a new strategic financial investor in Zenith Netherlands, a company we shall use to pursue potentially highly prospective future acquisition opportunities on a joint venture basis," said CEO Cattaneo.
"The board looks forward with enthusiasm to updating shareholders on several fronts in due course."
By Greg Rosenvinge and Holly Beveridge, Alliance News reporters
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