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(Alliance News) - Zenith Energy Ltd on Friday said it plans to reactivate certain natural gas production concessions within its Italian portfolio, following the renewed confirmation of its technical and financial capabilities as an operator by the Italian oil and gas authorities.
Zenith Energy is a Calgary, Canada-based oil and gas company, with production, exploration and development assets in Africa and Italy. In the latter, Zenith has six operated onshore gas production concessions, including San Teodoro and Misano Adriatico, in which it has 100% working interests.
At the San Teodoro licence, Zenith intends to re-complete the San Teodoro 1 Dir A well, in order to achieve commercial production from two previously identified gas-bearing formations.
If successful, it expects production of up to 10,000 cubic meters of natural gas with monthly revenue of EUR100,000.
Further, initial production at Masseria Grottavecchia is expected to be roughly 5,000 to 10,000 cubic metres of natural gas per day, with expected monthly production revenues between EUR40,000 and EUR 80,000.
Zenith said it was still waiting to complete certain bureaucratic formalities with respect to its Sant Andrea concession. In view of these delays, it now expects production to begin in the first quarter of 2023.
It added that the Ministry of Environment and Energy Security in Italy has conducted a comprehensive periodic review of the technical and financial capabilities of Zenith's Italian subsidiary, confirming its status as a company meeting the required standards to operate in Italy.
"We are very pleased, following a periodic review last performed in 2013, that our Italian subsidiary has received renewed confirmation of its technical and financial capabilities as an operator by the Italian oil and gas authorities," said Chief Financial Officer Luca Benedetto.
"Our Italian energy production portfolio has significant untapped development potential. We look forward with enthusiasm to unlocking this during Q1 and Q2 of 2023 and progressively scaling up our revenue generation in the current favourable energy pricing climate."
Zenith Energy shares closed 9.0% higher at 0.90 pence each in London on Friday.
By Holly Beveridge; hollybeveridge@alliancenews.com
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