October 22, 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")
New Geological Structure Identified in Well C-37, Jafarli Field
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 announce that additional, ongoing geological and reservoir investigations have enabled the Company to identify a new structure in the Middle Eocene and Upper Cretaceous formations of the Jafarli Field.
· The Jafarli field is a dip-closed anticline, located in the south-east tail of the Muradkhanli anticline in the Yevlakh - Aghjabady depression.
· Historically, the primary productive formation in the field has been the Middle Eocene, consisting of volcanogenic clastic layers and fractured marly limestones draping and lapping the Mesozoic underlying structure which is identifiable in the 3D seismic surveys performed in 2008 and 2011.
· The identified structure measures approximately 3 square kilometres with a significant degree of closure indicated by a thickness of approximately 100 metres.
· The study recommends that well C-37's total depth, 3,987 metres, be deepened by approximately 200-250 metres with the following two objectives:
1.) Penetrate sandstone layers found in the adjacent well C-22 where historical well data indicates that initial production was approximately 700 barrels per day from the Middle Eocene formation upon drilling in 1986.
2.) Penetrate the Mesozoic (Upper Cretaceous) formation, which has not been previously tested in this structure to verify its fluid content. The new Cretaceous play could potentially unlock valuable new prospective exploration activity to be performed in the Muradkhanli and Zardab fields.
· In order to better evaluate the potential benefits of successful drilling activities the Company has calculated the reserves potential of this structure by hypothesizing certain petrophysical parameters expressed in similar Cretaceous reservoirs located in the north-western part of the Kura basin. The aforementioned reserves calculation has confirmed the Company's intention to proceed with the performance of drilling operations.
Appointment of Senior Reservoir Engineer
The Company is pleased to announce that it has appointed Narmina Garayeva as Senior Reservoir Engineer of Zenith Aran, its fully-owned Azerbaijan subsidiary.
Narmina is a senior reservoir engineer with a PhD degree in Reservoir Engineering and 30 years' experience acquired with oil companies including Addax Petroleum and BP. She has previously worked in geographies including Azerbaijan, West Africa, North Sea, Middle East, Russia, Kazakhstan.
Andrea Cattaneo, Chief Executive Officer, commented:
"I am delighted to welcome Narmina to the team, and I am confident that her comprehensive skillset and vast experience will be of great assistance to us during the crucial period ahead.
As can be seen from the application of our geological re-evaluation of our assets in Azerbaijan which has resulted in the identification of a new geological structure in the Jafarli field, we are maximising our level of preparation and geological understanding. This is extremely important in order to achieve the highly material upside we believe our Azerbaijan asset can deliver through successful drilling activities at a time of very favourable oil prices."
For further information please contact:
Zenith Energy Ltd.
Chief Executive Officer
E-mail: [email protected]
Tel: +1 (587) 315 9031
Vigo Communications - PR Adviser
Tel: +44 (0) 20 7830 9700
Daniel Stewart & Company Plc - (Joint Broker)
Robert Emmet- Corporate Broking
Tel: + 44 (0) 207 776 6550
Optiva Securities - (Joint Broker)
Tel: + 44 (0) 203 137 1903
Allenby Capital Limited - (Financial Adviser)
Tel: + 44 (0) 203 328 5656
Notes to Editors:
Zenith Energy Ltd. is an international oil and gas production company, dual listed on the TSX Venture Exchange and London Stock Exchange.
The Company operates the largest onshore oilfield in Azerbaijan following the signing of a 25-year REDPSA, (Rehabilitation, Exploration, Development and Production Sharing Agreement), with SOCAR, State Oil Company of the Azerbaijan Republic, in 2016.
The Company's primary focus is the development of its Azerbaijan operations by leveraging its technical expertise and financial resources to maximise low-cost oil production via a systematic field rehabilitation programme intended to achieve significantly increased revenue. Zenith also operates, or has working interests in, a number of natural gas production concessions in Italy. The Company's Italian operations produce natural gas, condensate and electricity.
Zenith's development strategy is to identify and rapidly seize value-accretive hydrocarbon production opportunities in the onshore oil & gas sector. The Company's Board of Directors and senior management team have the experience and technical expertise to develop the Company successfully.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.