Last checked at 10 Nov 2020 07:40
November 10, 2020
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")
Termination of LOI
Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; OSE: ZENA-ME), the listed international oil & gas production company focused on pursuing African development opportunities, announces that it has terminated the non-binding Letter of Intent ("LOI") with a consortium of Arab investors first announced to the market on March 31, 2020. For reference, an extension of the duration of the LOI was announced to the market on August 7, 2020.
The LOI was conditional on a number of conditions, including the successful completion of the acquisition from KUFPEC of its 22.5% working interest in the North Kairouan permit and the Sidi El Kilani Concession the Republic of Tunisia (the "Tunisian Acquisition") upon the receipt of local regulatory approval, as well as the successful acquisition of two oil production licenses being negotiated with a national oil authority in West Africa (as announced by regulatory announcement on March 12, 2020).
The Company is pleased to confirm that progress is being made in relation to both of these transactions and that it expects to update the market in due course.
Andrea Cattaneo, Chief Executive Officer, commented:
"As per our announcements, we have a number of potential near-term catalysts for shareholder value creation as a result of our African acquisition activities.
In view of the length of time that has elapsed since the Company entered into the non-binding LOI, as well as the aforementioned near-term progress that might be achieved, we have elected to terminate the LOI.
We have maintained good relations with the consortium of investors, and we may resume negotiations as we deliver on our African development campaign."
Further Information:
Zenith Energy Ltd | |
Andrea Cattaneo, Chief Executive Officer | Tel: +1 (587) 315 9031 |
E-mail: info@zenithenergy.ca | |
Allenby Capital Limited - Financial Adviser & Broker | |
Nick Harriss Nick Athanas | Tel: + 44 (0) 203 328 5656 |
Notes to Editors:
Zenith Energy Ltd. is an international oil and gas production company, listed on the London Stock Exchange (LSE:ZEN) and the Merkur Market of the Oslo Stock Exchange (ZENA:ME).
Zenith's development strategy is to identify and rapidly seize value-accretive hydrocarbon production opportunities in the onshore oil & gas sector, specifically in Africa. The Company's board of directors and senior management team have the experience and technical expertise to develop the Company successfully.