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Zenith Energy RNS Release

Filing of Quarterly Results


RNS Number : 4084H
Zenith Energy Ltd
15 November 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.

 November 15, 2018

ZENITH ENERGY LTD.

("Zenith" or the "Company")

 

Filing of Quarterly Results 

 

Zenith Energy Ltd. ("Zenith" or the "Company") (LSEZENTSX.VZEE; OSE: ZENA-ME) the listed international oil & gas production company operating the largest onshore oilfield in Azerbaijan, is pleased to announce the filing of its consolidated quarterly results for the six months ended September 30, 2018 on SEDAR (www.sedar.com). A copy of the documents filed on SEDAR can be accessed via the links below:

 

http://www.rns-pdf.londonstockexchange.com/rns/4084H_1-2018-11-14.pdf

http://www.rns-pdf.londonstockexchange.com/rns/4084H_2-2018-11-14.pdf

 

 

In accordance with Canadian securities laws, filing of the Company's quarterly results was performed on November 14, 2018. A copy of these documents will shortly be available for review on the Company's website: www.zenithenergy.ca.

 

 

Highlights for the six months ended September 30, 2018 include the following:

 

a)   The Group generated revenues from oil and natural gas production of CAD$3,803 (2017 - CAD$2,465) and from electricity CAD$321k (2017 - CAD$317) in the six months ended September 30, 2018, representing an increase of 12.8% in revenues over the corresponding period for 2017, and represents the highest quarterly net revenue since the Company's incorporation;

b)   During the three and six months ended September 30, 2018 the Company produced 22,133 and 45,523 barrels of oil from its assets in Azerbaijan;

c)   During the three and six months ended September 30, 2018 the Company sold 18,813 and 38,695 barrels of oil from its assets in Azerbaijan;

d)   During three and six months ended September 30, 2018, the Company sold 2,641 and 3,978 Mcf of natural gas from its Italian assets;

e)   During the three and six months ended September 30, 2018, the Company sold 182 and 610 barrels of condensate from its Italian assets;

f)    During the three and six months ended September 30, 2018, the Company sold 1,883 and 4,566 MWh of electricity from its Italian electricity production assets;  

g)   On September 5, 2018, the Company's fully owned subsidiary, Zena Drilling Limited, signed a purchase agreement for the acquisition of a BD-260 drilling rig assembled by B Robotics W S.r.l., for a total consideration of €2,250,200. The agreement supersedes the six-month rental agreement Zena had signed with Robotics for the BD-260 drilling rig dated June 6, 2018. In addition, Robotics confirmed it will provide its highly experienced drilling personnel for a minimum of 6 months as part of the aforementioned agreement. In addition, the Company has formalised a tender process in Azerbaijan for the leasing of a 180-ton truck-mounted workover and drilling rig for a period of four months.

h)   On September 5, 2018, the Company entered into a US$1,500,000 unsecured convertible loan facility with a term of 18 months starting from August 30, 2018. Zenith shall pay interest on the outstanding amount of the Facility at the rate of 0% per annum. The Facility includes an initial immediate advance of US$1,300,000, and a further advance of US$200,000 to be provided at a later time and at the discretion of the Lenders.

 

Further Information:

 

Zenith Energy Ltd 

Andrea Cattaneo, Chief Executive Officer 

Luca Benedetto, Chief Financial Officer

E-mail: [email protected]

Tel: +1 (587) 315 9031

 

Allenby Capital Limited - Financial Adviser

Nick Harriss

Nick Athanas

Tel: + 44 (0) 203 328 5656

 

Daniel Stewart & Company Plc - Joint Broker

Robert Emmet - Corporate Broking

Tel: + 44 (0) 207 776 6550

 

Optiva Securities - Joint Broker

Christian Dennis

Tel: + 44 (0) 203 137 1903

 

Notes to Editors

Zenith Energy Ltd. is an international oil and gas production company, listed on the TSX Venture Exchange (TSX.V:ZEE) and London Stock Exchange (LSE:ZEN). In addition, the Company's common share capital was admitted to trading on the Merkur Market of the Oslo Børs (ZENA:ME) on November 8, 2018. The Merkur Market is a multilateral trading facility owned and operated by the Oslo Børs. 

The Company was assigned a medium to long-term issuer credit rating of "B+ with Positive Outlook" on October 8, 2018 by Arc Ratings, S.A. 

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.
 
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