New record electricity production revenue

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310.

October 5, 2021  

ZENITH ENERGY LTD.

("Zenith" or the "Company")

New record electricity production revenue

Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; OSE: ZENA), the listed international energy production and development company, is pleased to announce that its production activities in Italy have achieved a new record in terms of profitability because of the current favourable energy pricing climate.

Electricity production in Italy

The Company is pleased to report, further to its announcement dated September 16, 2021, that its electricity generation activities at the Torrente Cigno concession in Italy, where low-grade natural gas production is used to generate electricity, have registered a new record in terms of profitability.

During the month of September 2021, the Company produced a total of approximately 920 MWh, a small increase in respect of the previous month.

Electricity prices during the month of September 2021 have averaged approximately EUR 157 per MWh, resulting in net revenues of approximately EUR 150,000 per month. The current net production costs remain fixed at approximately EUR 35,000 per month.

An application for the New Common Shares to be listed on the standard segment of the FCA Official List and to be admitted for trading on the London Stock Exchange Main Market for listed securities will be made within 12 months of the issue date. 

Issue of equity in respect of Winance Loan Agreement

The Company has issued 3,953,708 new common shares of no par value (the "New Common Shares") at an issue price of NOK 0.1266 (equivalent to approximately £0.011) to Winance in respect of the Loan Agreement announced to the market on May 26, 2021.

Total Voting Rights

The Company wishes to announce, in accordance with the UK Financial Conduct Authority's Disclosure Guidance and Transparency Rules, as well as section 3.10 of the Euronext Growth Oslo Rule Book Part II, the following revised information resulting from the issuance of the New Common Shares: 

Luca Benedetto, Chief Financial Officer and Managing Director of Italian operations, commented: 

 "The continued record profitability of our Italian operations by way of our electricity generation activities at Torrente Cigno is a source of great satisfaction for the Zenith team.

We have begun studying ways of increasing our electricity production operations in Italy at the Torrente Cigno concession making use of the existing infrastructure, including the potential drilling of the Masseria Vincelli 2 sidetrack well, in order to further benefit from the current pricing environment which is projected to remain extremely favourable for the rest of the year and beyond."

Further Information:

Notes to Editors:   

Zenith Energy Ltd. is an international oil and gas production company, listed on the London Stock Exchange (LSE:ZEN) and the Euronext Growth Market of the Oslo Stock Exchange (OSE:ZENA).

Zenith's development strategy is to identify and rapidly seize value-accretive hydrocarbon production opportunities in the oil & gas sector, specifically in Africa.