Member Info for hand-some

December 24, 2019 - TheNewswire - Calgary, AB - Zenith Energy Ltd., ("Zenith" or the "Company"), (LSE:ZEN); (TSXV:ZEE);(OSE:ZENA-ME), the international oil & gas production company, is delighted to announce that it has signed a conditional share purchase agreement ("SPA") with AIM quoted Anglo African Oil & Gas plc ("AAOG") for the acquisition of an 80 percent interest in AAOG's fully owned subsidiary in the Republic of the Congo, Anglo African Oil & Gas Congo S.A.U ("AAOG Congo") ("Acquisition").

The SPA is conditional, inter alia, on the passing of an ordinary resolution of shareholders in AAOG in a General Meeting approving the Acquisition and certain regulatory requirements in the Republic of the Congo including consent of the Minister of Hydrocarbons ("Completion").

Acquisition Highlights

- Zenith will enrich, as well as diversify, its asset portfolio by completing its first African acquisition in the form of a highly prospective oil production and development asset. This is in line with the Company's strategy of identifying and acquiring assets with significant untapped production potential.

- Following Completion of the Acquisition, Zenith will own 80 percent of AAOG Congo which has a 56 percent majority interest in, and is operator of, the Tilapia oilfield in the Republic of the Congo (the "License"). The remaining 44 percent is held by the national oil company, Societe Nationale des Petroles du Congo ("SNPC").

- The License is located in the Lower Republic of the Congo Basin, West African Atlantic Margin, which extends from Gabon down to Angola, a prolific hydrocarbon region in which certain individual wells have recorded production rates of up to 5,000 barrels of oil per day. It is situated 1.8km offshore and entered into production in 2008. Having been drilled from onshore, there is no requirement for offshore drilling equipment. Oil storage and processing facilities are a 45-minute drive from Point Noire and 17km from the nearest refinery.

- Successful recent drilling undertaken during 2018 and 2019 has identified multiple potential productive reservoirs within the License across a number of formations including the regionally proven Mengo and Djeno reservoirs. This has confirmed the transformational potential productivity to be obtained from the License. Recent expert wireline log analysis commissioned by AAOG Congo after drilling activities in the Djeno formation has indicated that reservoir quality is "between good and excellent".

- AAOG Congo currently produces approximately 30 barrels of oil per day.

- SNPC owes AAOG Congo approximately US$5.3 million as a result of the work conducted to date on the License. Zenith has met with SNPC and expects to obtain the full repayment of the aforementioned amount. Upon completion of the Acquisition and repayment of the credit by SNPC, Zenith will retain 80 percent of the aforementioned amount.

- Zenith plans to commission a new Competent Person's Report in compli

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RNS noted ref Anglo African Oil & Gas #AAOG We can confirm that we are behind the attempt to put together an EGM to sweep out almost all the board & install Alexander MacDonald as CEO. Statement to come in days ahead.

Just voted NO to the 2 resolutions in respect to my 304,000 shares. We might not be able to stop it but I feel if we do GeoPark might come back with better offer but probably by only 5 -10% more.. I have seen this in few cases Faroe, Regal.

Best wishes to all

The H-S

is something going on?

Good point. that's why I said before that I think M&P might bid. their offer was rejected and only 19 p was accepted. i think they were waiting on the sidelines to see whatsbthe result. Surely when they bid 17p that was the starting point of negotiations. It is of course possible that their upper limit was around 19p but maybe not. the fact that they can easily get all these asstes and production for only say 21p which could still be mixture of shates and cash is an amazing opportunity for them. when i say 'them' I mean Indonesian owners who are desperate to cover Indonesia's oil deficit

you meant 100M, right?

this article is such a good overview of the deal BUT its a painful reading for any Amer shareholder. how it is great deal for Geo and a great price for them...arghhh
It actually confirms our anger at this terrible deal undervaluing Amer and its assets by 50% . basically on any value metric e.g. reserves, production, cash flow, development potential we got screwed. Because of this I expect more development here. Hope I am right!

jointhedots I am fully aware that what I am saying could be true - we just don't know.

My point is that there is nothing stopping M&P to come up with another cash + shares offer outside the FSP as they did the first time around. Remember at that time they also said they had support from key investors

so what? M&P took part in the process with their 17p bid and got beat by Geo. Nothing stops them to come back in with higher bid. Maybe Amer management told them of the proposed Geo bid and M&P refused to bid more but who knows...

will another bid come of course nobody knows but I think M&P must be in the mix as GeoPark offer was hardly a killer bid.
I expect M&P to come along with adjusted offer and beat Geo. They would only need to up their initial offer by around 25% to get to 21.1 p price which is 10% more than 19.2p.
That would allow these guys to get on board, from RNS Appendix "The irrevocable undertaking given by Canaccord Genuity Wealth Management shall also lapse if a third party announces a firm intention to make a competing offer for Amerisur on terms which represent an improvement of not less than 10 per cent."
I believe M&P could easily adjust their offer to something like 14.5p in cash and 6.5p in M&P shares. After all M&P must have expected that their original offer could have been rejected and must have Plan B offer as a counter. Small ball offer by Geo def didn't kill that Plan B (if they have one)

Good effort money and everyone who sent info of their holding (I did). So we have 5% of Amer as of now. Pretty good and if we all vote NO we could definitely make difference. We are at the same level as River and Mercantile Asset Management who have 5% based on yesterday's RNS.

I am sure we can gather another 2-3% from people who didn't respond.

4,500,000 bbl / (365×3)=4110 bbl/day

I like the assumption!

Seriously- angela you brightest investment genius :(((

'If AAOG lose out in its claim via the PCC the sp will reflect it by falling at close on 40%.'

The pearls of wisdom are never ending. But don't bother us with any proof for the above statement Mystic Meg :O.

What a cretin you are!

.

'Sarah Cope, currently a Non-Executive Director of the Company, has assumed the role of Interim Non-Executive Chairman and the Company will commence the search for a new Non-Executive Chairman.'
What are they talking about?

I am glad that I was wrong about the RNS impact on share price rise but let's not kid ourselves, while very positive to move from year lows, this is nothing unless it start getting back to 7-10p range. Wish we get there with rig in place and drilling start

This is definitely good news as a first step. Key info is about the rig, they are obviously still negotiating but the rigs are in Congo and November has been penciled in. Is SP gonna move? It should for any normal share, but this is AAOG.
Anyway, I am glad that the comms strategy has clearly changed, no more DS fancy presentations and interviews and more clear and short RNS and things being done

Thanks for some good answers and thinking morning/drewky/gooba. and I agree with your explanations. I just thought at least they could have mentioned the pressure of oil flowing to surface and the amount of oil that flowed out after those 40 odd days - of course not in anyway to represent the real flow rate but at least to give some indication that this is not some few barrels seeping out.
As other mentioned the fact that SNPC are paying regularly (and paying for past commitments) is the big sign for me.
Unlike others I find DS reasonable guy albeit bit clumsy. How many CEOs or directors would so readily admit that they made a mistake re CPR - I respect him for this. Now could all this be ruse of some political and fund raise games happening behind the scenes? Maybe, but he doesn't strike me like that kind of guy and SNPC should know him well by now for him to be able to fool them

why not just say in RNS or in interview there is oil flowing past the plug at this or that rate through this space under this pressure? this is what I find strange. Just issue an RNS with this data and all the assumptions that go with it and say based on this and the CPI study in regards to reservoir we are making production plans

i don't get it. usually you explore find oil and flow test it. there is flow so you start production if you can, have facilities, someone to sell to etc. In AAOG case as Sefton said in the interview they will go back into the well now to bring it into production and...wait..to see what are the flow rates?? this is what i am puzzled about. so to define production plans and to talk about 2000bopd they must have some idea from oil flow and reservoir to be confident to start making production plans. But why not just come out and say it? because there is no oil or it doesn't flow? well why the hell would you make long ter, production plans rather than just trying to test the well? as I said I don't get it

you are wrong on point v) RNS clearly states "the CPR is now scheduled for the second half of May". Thats not to say it could be delayed again but this time I doubt it as there are no potential events to cause this