Zenith Energy has signed an exclusivity agreement to acquire an operated working interest in an onshore oil production asset in Tunisia.
- Daily national oil production of approximately 35,000 bopd
- Safe, democratic jurisdiction
- Fast monetisation of produced oil with favourable fiscal regime
- Attractive domain for junior independent exploration and production companies
The Acquisition currently produces at a rate of approx. 700 barrels of oil per day, generating gross annual revenues of approx. US$15 million.
Zenith is advanced negotiations with an international oil major to sign an offtake agreement for the asset’s future oil production in order to fund the Acquisition. There are no plans to issue equity consideration to fund the Acquisition.
The Company intends to complete the Acquisition by March 31, 2020 subject to the satisfactory conclusion of currently ongoing due diligence activities.
Andrea Cattaneo, Chief Executive Officer, commented:
‘It is Zenith’s strategy to acquire revenue generating oil and gas production assets. The Acquisition represents an attractive opportunity to enrich our asset portfolio in a country where management have significant experience. We are currently performing due diligence and visiting the target asset with a view to completing the Acquisition by March 31, 2020.
It is important to underline that we have no plans to issue equity to fund the Acquisition or its immediate development following completion.’
Source: Zenith Energy