Zenith Energy Ltd - Acquisition of Tilapia for £200,000
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" or the "Company")
Acquisition of Tilapia for
The Company has entered into a new conditional Deed of Variation (the " Deed of Variation") which now includes the acquisition of a 100 per cent. interest in AAOG Congo and related intercompany loans (the "Acquisition") for a revised total consideration of
The aforementioned variation to the terms of the Acquisition means that completion ("Completion") will occur after the passing of a resolution (the "Resolution") to be put to shareholders of AAOG at a general meeting (the "
Under the terms of the Deed of Variation for the Acquisition, payment of the Revised Consideration will solely depend upon the passing of the Resolution at the
Payment of the Revised Consideration is expected to be made on the next business day following the date of the Resolution being passed.
In addition, AAOG will novate 100% of the intercompany loans with AAOG Congo to Zenith as of the date of Completion, equivalent to approximately
As previously announced, AAOG Congo is owed approximately
Following Completion, the Company will assume responsibility of all ongoing costs and liabilities in relation to AAOG Congo. Zenith expects to implement a series of cost-cutting measures at AAOG Congo to improve profitability, especially in reaction to the significant recent decline in oil prices.
"Acquiring a 56 percent interest in the potentially transformational Tilapia oilfield, as well as 100% of the approximately
We are fully confident that the necessary regulatory approval process in the
I believe we have obtained significant value for Zenith shareholders by concluding the transaction under the revised terms and I look forward to delivering further good news in due course."
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Tel: +1 (587) 315 9031
E-mail: [email protected]
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Tel: + 44 (0) 207 399 9400
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Notes to Editors:
The Company was assigned a medium to long-term issuer credit rating of "B+ with Positive Outlook" on
This information is provided by RNS, the news service of the
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