Zenith Energy Ltd - Manufacturing of PPE for Africa
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")
Manufacturing of PPE for
· Zenith recognises the unprecedented challenges posed by the COVID-19 pandemic to populations across the world, especially in developing countries with limited intensive-care capacity and where fewer jobs can be performed remotely.
· The Company has observed publicly reported difficulties in the procurement and timely delivery of protective face masks across the world.
· Zenith intends to explore what kind of assistance may be provided by the
· The key to success for junior oil and gas production companies such as Zenith will be the achievement of significant reductions in its production costs in reaction to the recent decline in oil prices, as well as the ability to safeguard the welfare of its employees and local communities in order to ensure unaffected oil and gas production operations.
· In the first instance, the Company intends to export PPE manufactured in the
· The Company believes that, whilst the pandemic will likely slow in developed countries in the near-term, there is a probable danger it will accelerate in developing countries, who will therefore require sustained assistance to overcome COVID-19.
· There is consensus that there will be increasing global demand for PPE, including protective face masks, until an effective vaccine for COVID-19 becomes widely available, which most experts do not anticipate happening prior to mid-2021.
The Company can confirm that it has identified a suitable manufacturing facility location in
In addition, a business plan is being formalised for its future
It is anticipated that an order for three protective mask manufacturing units, capable of producing up to 50,000 protective masks per day, will be completed during the month of
The indicative cost of each manufacturing unit is approximately
Disinfectant Gel production in Pointe-Noire,
As announced on
The Company is in discussions with a local partner in Pointe-Noire to finalise an agreement for the establishment of a manufacturing facility for medical grade hand sanitiser ("Disinfectant Gel").
All the necessary equipment for the manufacturing of Disinfectant Gel has already been identified and will be provided by an Italian supplier.
Zenith expects to shortly finalise an understanding with its local partner in order to proceed with the identification of a suitable production location to begin production of Disinfectant Gel for the benefit of the local population.
It is expected that the local partner will provide a production facility location at no cost to Zenith.
"Our core focus is the acquisition and development of revenue generating oil and gas production assets in
This is something oil majors such as ExxonMobil are doing and which we, at a much smaller scale and in a different way, are looking to emulate - without distraction from our primary objective of acquiring oil and gas production assets in
The manufacturing of face masks and sanitising gel presents a low-cost, relatively simple, both commercial and humanitarian opportunity to enhance Zenith's settlement in
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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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Market Cap: £6.7 m
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