Update on profitability of Italian operations

November 8, 2021    

ZENITH ENERGY LTD.

("Zenith" or the "Company")

Update on profitability of Italian operations

Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; OSE: ZENA), the listed international energy production and development company, is pleased to provide an update on its electricity generation activities in Italy, which have achieved a new record profitability because of the continuing favourable energy pricing climate. 

New record profitability of electricity generation operations

The Company is pleased to report, further to its last announcement dated October 5, 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 October 2021, the Company produced a total of approximately 920 MWh.

Electricity prices during the month of October 2021 averaged approximately EUR 214 per MWh, resulting in net revenues of approximately EUR 181,500 per month. The current net production costs remain fixed at approximately EUR 35,000 per month. 

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

 "We continue to be extremely pleased with the increasing revenue generation and associated profitability of our Italian operations, which have now acquired material significance. 

As previously announced, we are evaluating how best to optimise and, where possible, enhance the productivity of our Italian portfolio, which also includes a number of other prospective concessions in addition to Torrente Cigno."

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"). Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

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 complete value-accretive hydrocarbon production opportunities in the oil & gas sector, specifically in Africa.