Zenith Energy completes Tunisia's Ezzaouia acquisition
25-03-2021 06:46:12 | by: Pie Kamau | hits: 1967 | Tags:

Zenith Energy, the international oil & gas production company focused on pursuing African development opportunities, announced that following its previous market announcement mid this month, Zenith Energy Africa Limited (ZEAL), its fully owned subsidiary, has now completed the acquisition of a 100 percent interest in the fully owned subsidiary of Candax Energy Limited (Candax) in Barbados, Ecumed Petroleum Zarzis Ltd (EPZ), (the Acquisition), which holds a 45% interest in the Tunisian onshore Ezzaouia Concession (Ezzaouia).

Pursuant to the terms of the SPA, ZEAL has acquired 100% of EPZ for the aggregate amount of $150,000, which has now been paid, as well an additional $100,000 to be satisfied by the issue of ordinary shares in the share capital of Zenith to be issued within sixty days of completion (Consideration Shares) and a royalty payable and calculated as $0.35 per each barrel of hydrocarbons produced from the Ezzaouia Concession and allocable to EPZ, with the royalty not being less than an amount of $50,000 per annum for a period of ten years.

Andrea Cattaneo, Chief Executive Officer of Zenith, commented: "We are very pleased to have achieved successful completion of this transaction which gives Zenith monthly oil production revenue of approximately $400,000. Ezzaouia has significant unexploited potential which we intend to develop progressively via a combination of workover and drilling activities to be commenced following consultation with our partners in the very near future. In addition, we have further reinforced our settlement in Tunisia, enabling a demonstration of our technical and financial capabilities locally. The Board strongly believes in Zenith's successful establishment in Tunisia and we intend to capitalise on certain additional possible acquisition opportunities that may present themselves in the near-term."