Last checked at 2 Nov 2018 07:00
November 2, 2018
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.
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Beginning of Comprehensive Reservoir Study
Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; TSX.V: ZEE), the dual listed international oil & gas production company operating the largest onshore oilfield in Azerbaijan, is pleased to announce that it has begun a comprehensive reservoir engineering study to achieve the optimisation of production from active and shut-in production wells across the Muradkhanli, Jafarli and Zardab oilfields in Azerbaijan.
The findings of the reservoir study will complement the two comprehensive geological studies previously completed by the Company, announced on August 13, 2018, whose scope was focused on the selection of infill drilling locations across its field area in preparation for the beginning of drilling activities in Azerbaijan.
The primary goal of the reservoir study will be the achievement of a material improvement in Zenith's understanding of its reservoir base in order to perform well interventions, including sidetracks and perforations, that might unlock significant reserves in historically highly productive wells. The study will also result in the creation of a fully digitalised database that will incorporate all existing printed reservoir data.
Update on Well C-37 Operations
Zenith can confirm that the preparatory work required prior to the beginning of drilling activities, announced on October 15, 2018, is ongoing and that the electrical submersible pump has been pulled out of the hole. The Company's operational team has begun running in the hole with a scraper to the production casing shoe at a depth of 3,904 metres. A series of well investigations by wireline will follow the completion of this work, as well as the performance of civil works including the construction of a drilling pad.
The Company will provide an update once the aforementioned preparatory work is concluded and a 180-ton rig, contracted from a local service company, is mobilised to the well location to commence drilling operations.
Andrea Cattaneo, Chief Executive Officer, commented:
"I am satisfied with the significant progress we are making in a number of areas. Zenith's recent appointments reflect an intention to maximise our geological, reservoir engineering and technical understanding in order to achieve concrete operational success. I look forward to reporting on our progress in due course as we enter an exciting phase of highly prospective drilling activities."
Further Information:
Zenith Energy Ltd
Andrea Cattaneo
Chief Executive Officer
E-mail: info@zenithenergy.ca
Tel: +1 (587) 315 9031
Allenby Capital Limited - Financial Adviser
Nick Harriss
Nick Athanas
Tel: + 44 (0) 203 328 5656
Daniel Stewart & Company Plc - Joint Broker
Robert Emmet - Corporate Broking
Tel: + 44 (0) 207 776 6550
Optiva Securities - Joint Broker
Christian Dennis
Tel: + 44 (0) 203 137 1903
Vigo Communications - PR Adviser
Patrick d'Ancona
Chris McMahon
Tel: +44 (0) 20 7930 0230
Notes to Editors:
Zenith Energy Ltd. is an international oil and gas production company, dual listed on the TSX Venture Exchange and London Stock Exchange. 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 Azerbaijan Republic, 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.