Last checked at 17 Jan 2018 07:00
January 17, 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")
Zardab Operational Update
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 provide an update on its field rehabilitation operations in the Zardab field, Azerbaijan.
High-impact workover of well Z-21
The Company confirms that the high-impact workover of well Z-21 began on the evening of January 16, 2018 following the mobilisation and rigging up of a coiled tubing unit ("CTU") and the arrival of ancillary milling equipment.
The CTU will be run to total depth ("TD"), 3982 metres, bypassing the previous tag depth of 2062 metres to which an initial coiled tubing intervention had been run on August 4, 2017.
As announced by the Company on December 19, 2017, the average wellhead pressure recorded since the initial coiled tubing intervention undertaken in August 2017 has progressively increased to significant levels. The most recent well inspection recorded an average shut-in tubing and shut-in annulus pressure reading of approximately 4300 psi.
The Company will provide an update once operations at well Z-21 are completed.
High-impact workover of well Z-28
The Company is awaiting imminent delivery of resin compounds to successfully seal the wellhead after, as announced on December 19, 2017, a leak had been observed during a pressure test from the wellhead in the 9 5/8 inches casing seal assembly.
This follows the commissioning of a detailed engineering study aimed at resolving the problem from an internationally established company, specialised in oilfield leak-sealing technology, based in the United Kingdom.
Once the sealing of the wellhead is achieved, the Company's operational team intends to run a CTU to TD, 3944 metres, from the top of the slotted liner and place the well on production.
The Company will provide an update once operations at well Z-28 are concluded.
Mike Palmer, Chief Operating Officer, Zenith Aran, the Company's Azerbaijan-based fully owned subsidiary, commented:
"We are at a very exciting juncture in the Company's operations in the Zardab field, especially as we are confident regarding the success of these operations. The next couple of weeks will be instrumental in achieving our oil production objectives. I am very much looking forward to a favourable result in both these operations to reward the significant work performed to date."
For further information please contact:
Zenith Energy Ltd.
Andrea Cattaneo
Chief Executive Officer
Email: info@zenithenergy.ca
Telephone: +1 (587) 315 9031
Optiva Securities - (Joint Broker)
Christian Dennis
Telephone: + 44 (0) 203 137 1903
Beaufort Securities Limited - (Joint Broker)
Jon Belliss
Telephone: +44 207 382 8300
Allenby Capital Limited - (Financial Adviser)
Nick Harriss
Nick Athanas
Telephone: + 44 (0) 203 328 5656
Yellow Jersey (Financial PR/IR)
Tim Thompson
Telephone: +44 (0) 203 735 8825