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Most importantly, SLK Tunisia is still on. He is in talks with all concerned.

In negotiation for completely new deal for a new concession in Tunisia.

1200hp rig may go to Ezzauoia first, then on to Congo. He's going to Congo in the next 10 to 15 days, possibly to find out the timescale for Tiapia ll licence. Ezzauoia side tracks expected to start in January.

All rig costs quoted are accurate. Negotiated some great deals. It sounded like he was making fun of those who mocked his rig estimates.

The cost for a new well in Italy too expensive and bureaucracy too excessive. Will consider selling the Italian setup.

Nigerian due diligence ongoing, deal still possible.

Register here - https://bit.ly/3ECxqMP

The Investor conference call is on the10th November at 10:00 UK time. I doubt if he will answer all my questions but he should provide enough information to put peoples mind at ease.

''The Company wishes to underline that no terms for any possible transaction have been discussed at this point.

Andrea Cattaneo, Chief Executive Officer of Zenith, commented:

"We are very pleased to begin our evaluation of the opportunity to participate in NHNL's RSC for the development of the North-West Corner of OML 141 in Nigeria directly with the exclusive holder of this agreement following the signing of the Exclusivity.

The RSC for NW OML 141 would represent a very exciting opportunity for Zenith to enter the Nigerian oil and gas space and to exploit an undeveloped, potentially highly prolific selection of oil and gas fields.

This opportunity is in line with our strategy of identifying assets, which are 'drill-ready' and with significant near-term production potential, that will position the Company to achieve its goal of becoming an oil and gas company with a well-balanced portfolio producing more than 10,000 bopd."

Just thought it was a dammed good read. Only three weeks away.

August 31, 2021

ZENITH ENERGY LTD.

("Zenith" or the "Company")

Exclusivity agreement for OML 141 RSC in Nigeria

Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; OSE: ZENA), the listed international oil & gas production company focused on pursuing African development opportunities, is pleased to announce that it has entered into an exclusivity agreement (the "Exclusivity") with Noble Hill-Network Limited ("NHNL"), a private Nigerian oil and gas company, that holds 100% of the Risk Service Contract ("RSC") for the development of the North-West Corner of OML 141 ("NW OML 141").

NW OML 141 covers an area of approximately 105 square kilometres in the swamp area of the Niger Delta region. The NW OML 141 RSC contains two discovered fields and one prospective field with an estimated 232.7 million barrels of discovered oil (Degeconek 2019 CPR) with the potential to grow to more than 500 million barrels of Contingent and Prospective Resources with several TCF of prospective natural gas and condensate.

The discovered fields include the potentially highly productive Elepa South and Barracuda oilfields, which are both categorised as discoveries under SPE-PRMS rules and are 'drill-ready' with the first well location having already been purchased and the necessary civil works having already been performed. The prospective field, Curlew Channel, is a large multi TCF natural gas and condensate prospect containing the deeper "U" and "X" reservoirs identified both on the Northern boundary of the Risk Service Contract Area ("RSCA") in NW OML 141 and the nearby Shell OML 33. NHNL plans to commence drilling activities before the close of 2021 and start production through an Early Production Facility shortly thereafter.

Under the terms of the Exclusivity, Zenith has a period of 90 days during which to conduct due diligence and to evaluate the opportunity to participate in the RSC via the potential purchase of an equity stake in NHNL, the sole holder of the RSC.

Continued....

Canary - it reads to me that the agency disagrees with Zenyth. This is a clear statement from the company, ''the oil which has been produced since the signing of the sale and purchase agreements belong to Zenith''. I'm sure the agency are correct that they cannot take the word of the company as to what is in the contract and must err on the side of caution without proof that this is the case. If I was to lay money on the correct outcome, I would probably follow the agency's route. However, I repeat, the company have made a clear statement that cannot be ignored. Definitely a question for the Investor call.

Thanks for that Gary, completely missed it. Going by that report we own the oil produced from the SLK consessions,120,000 Barrels, $12m, regardless of KUFPEC's renewal of the extension.

I am now slightly confused. Four months ago we were told the rig was being held in a Mediterranean port. Three months ago it was stated that the rig was heading down to Congo. I'm pretty sure it was the 260 they were referring to. I presume this information came from a phone call to the company Gary.

My compliments Ezhik for a good and honest appraisal.

Well that makes perfect sense MIS678. He wants to impress both Tunisian and Congo Ministries by sending a heap
of metal rather than hire in a proper company. Your beginning to sound like a child who has had it's toys taken away. Please encourage us to take you serious in some way by writing coherent non bitter appraisals of our present situation.

FV - don't get disillusioned now the game is getting interesting. Let me help by pointing out a few positives.

SLK
Because nothing was said with regards to SLK in todays RNS tells me he's locked into a negotiating position and is restricted until a conclusion has been reached. The only possible negative outcome from the SLK situation is if KUFPEC announce they will not renew the extension. With this must come an announcement, and we have not had an announcement, so we must conclude this has to be ongoing.

Placing
No one likes a placing but sometimes you can't get anything done quickly without one. The company has 59 staff and an expenditure of £5.7m per year. Much of the income received so far covers a good chunk of that £5.7m. However, building a momentum/a pace with a placing maybe unsavoury to some but essential in the progression of the company. You all might be thinking the recent RNS is just a diversion from the pending outcome of the SLK situation, quite the contrary. This was not done overnight, you don't get institutional investors onboard with a phone call (hello Jim, got a few quid spare to invest), it takes weeks for them to investigate your credentials and you can't get a placing arranged over a weekend. The question is how do you expand the company quickly if you have no money to do it with. SNPC are holding back $5.7m, SLK holds $10m, the SNP court case that everyone seems to have forgotten about is holding potentially $5.3m (could be as much as $20m based on AAOG's injected investment). So the poor old chap AC, was in a bit of a pickle if he wanted to get things moving.

Azzauia
Azzauia, was producing back in March $400,000 per month, currently producing almost $650,000 per month to Zenith. The plan now is to drill two side tracks to increase the production rate to 1000bpd, giving Zenith an additional 200-250bpd or $650,000 per month. $1.3m per month or $15.6m per year overall.

Robanna
The Robanna concession, as far as I am aware, is set to work over Rob- 3 immediately after Rob- 1. Now it seems we are drilling two new wells. We may be drilling these wells in conjunction with Rob-3, however, I think this is unlikely as we have heard nothing regarding the movement of the rig to Rob- 3. What should be noted is that wells prior to 2012 were producing at a rate of 500bpd. No potential figures have yet been divulged as yet but we could be looking at quite a windfall if successful.

Congo
AC told us back in 2020 that it takes and will take a very long time to get the rigs through Congo customs. He's now confirmed that the 1200hp rig is on route to or situated in Congo and the costs associated with its movement to Tilapia will be £300,000. In addition, £250,000 for Tilapia ll licence process and finalisation of Tilapia ll drilling operations, are clear indications that he is preparing to drill. He's been telling us for the last 18 months that he has this in the bag and imv nothings changed with that regard.

I'm not quite sure what exactly is going on here. I do know KUFPEC's extension expiry date has now passed, so an RNS should be issued either to acknowledge that fact or to reassure investors that discussions with KUFPEC or Tunisian ministry is ongoing. We are of course only talking about KUFPEC, as CNPC extension period ends on the 30th November.

My bet is that KUFPEC has asked AC for a defined date, confirmed by the Tunisian Ministry for the deal to be assessed, with AC is now talking to the Ministry. Sadly all guesswork here.

It's not Tilapia I'm waiting for, more so SLK ($10m).

A nice 2m buy to round the day off nicely, should be an interesting Monday morning. Have a nice weekend guys.

Thanks FV - I was sure I had read it somewhere.

I thought the 1250 horse power rig had a complete overhaul and was heading down to Congo.

TYB - I think you will find Sentimentalist figures are a bit out of date. Capitalisation and estimated price is based upon audited accounts issued on the31st August for the trading period up to 31st March 2021. The next half year accounts or trading update expected November/December, up to the end of September should be very interesting. You may remember the Engineers report and Allenby Capitals appraisal failed to include most of the important stuff. So we are in for a dramatic uplift in the coming months imv.

Sorry Canary - unless I've missed something, the cost is in fact only $550,000.

RNS 19th August 2021
''The cost of the ROB-1 workover has been estimated to be approximately US$550,000''.

Absolutely right IVS transformed is an understatement.

MG - I think you have been far too lenient with those that wish to paint a dull picture of our CEO. I bought into Zenith back in September 2020 and we all know what the price was then. Everything that took place since then has been quite astonishing to put it mildly. What happened before is a thing of the past and totally irrelevant to the present day situation. For those who insist on looking to pass judgement on the Azerbaijan escapade should have looked first at the circumstances and conditions Zenith had to work under. Excessively forced working impediments were imposed like, for instance, forced to employ 150 inexperienced Azerbaijany workers, on sight for the duration, could not believe it when I read it.

Even though the Azerbaijan enterprise is no longer active the stigma of it's unsuccessful attempts to increase bpd still permeates with some, including the Tunisian Ministry. This without doubt stifled Zeniths forward momentum based purely upon it's so called failed technical ability. In my opinion this was a misjudged and biasly misguided view based purely on the result and not the content of the endeavour undertaken. Yesterdays milestone news removes the negative status and engages a new vibrant image of technical ability that will be seen by energy Ministries throughout as nothing other than professional. In my view Zenith did nothing wrong in Azerbaijan. It was obvious from the start that failed inherited infrastructure and government restrictive policy were the driving factors that quickly became a thorn in the companies side and was always going to prohibited a speedy success.

What's important now is that technical ability is proven and the resulting flow rate from Rob- 1 is, I'm sure, going to be favourable. Far more important is getting this across the line before the 31st October with sufficient time for the Tunisian Ministry to approve the SLK deals.

We have a series of events about to unfold that will be company changing. This is how I see the next two months.

Rob-1 resulting flow rate.
Approval letter from Tunisian ministry, or renewal of the SLK extended agreement term.
Establishment of the Rob-3 workover rig on site.
The sale of the now overdue second batch of accrued oil.
Mobilisation of rig to Azzaouia.
A new rig agreement singed for the new gas well in Italy.
The decision to engage with Nobel Hill in Nigeria
Ratification through Parliament for the Tilapia licence in Congo.

I must add one more thing. You all know my thoughts on paid de-rampers and their regular appearances when imminent good news is about to happen. Well I'll say no more for now.

All interesting and exciting times ahead.

Absolutely right IVS transformed is an understatement.

MG - I think you have been far too lenient with those that wish to paint a dull picture of our CEO. I bought into Zenith back in September 2020 and we all know what the price was then. Everything that took place since then has been quite astonishing to put it mildly. What happened before is a thing of the past and totally irrelevant to the present day situation. For those who insist on looking to pass judgement on the Azerbaijan escapade should have looked first at the circumstances and conditions Zenith had to work under. Excessively forced working impediments were imposed like, for instance, forced to employ 150 inexperienced Azerbaijany workers, on sight for the duration, could not believe it when I read it.

Even though the Azerbaijan enterprise is no longer active the stigma of it's unsuccessful attempts to increase bpd still permeates with some, including the Tunisian Ministry. This without doubt stifled Zeniths forward momentum based purely upon it's so called failed technical ability. In my opinion this was a misjudged and biasly misguided view based purely on the result and not the content of the endeavour undertaken. Yesterdays milestone news removes the negative status and engages a new vibrant image of technical ability that will be seen by energy Ministries throughout as nothing other than professional. In my view Zenith did nothing wrong in Azerbaijan. It was obvious from the start that failed inherited infrastructure and government restrictive policy were the driving factors that quickly became a thorn in the companies side and was always going to prohibited a speedy success.

What's important now is that technical ability is proven and the resulting flow rate from Rob- 1 is, I'm sure, going to be favourable. Far more important is getting this across the line before the 31st October with sufficient time for the Tunisian Ministry to approve the SLK deals.

We have a series of events about to unfold that will be company changing. This is how I see the next two months.

Rob-1 resulting flow rate.
Approval letter from Tunisian ministry, or renewal of the SLK extended agreement term.
Establishment of the Rob-3 workover rig on site.
The sale of the now overdue second batch of accrued oil.
Mobilisation of rig to Azzaouia.
A new rig agreement singed for the new gas well in Italy.
The decision to engage with Nobel Hill in Nigeria
Approval for the Tilapia licence in Congo.

I must add one more thing. You all know my thoughts on paid de-rampers and their regular appearances when imminent good news is about to happen. Well I'll say no more for now.

All interesting and exciting times ahead.