TIDMZEN
RNS Number : 3059Z
Zenith Energy Ltd
24 January 2022
January 24, 2022
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Operational update - Tunisia
Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; OSE:
ZENA), the listed international energy production and development
company, is pleased to provide an update on its planned near-term
drilling activities across its oil and gas production portfolio in
Tunisia.
Ezzaouia Concession
The Ezzaouia concession is producing approximately 500 barrels
of oil per day ("BOPD") and 18 MSCF of natural gas at a stable
rate.
The Company is currently consulting with its partner, Entreprise
Tunisienne d'Activités Pétrolières ("ETAP"), having decided to
perform sidetracks in two non-producing wells on a 'back-to-back'
basis to maximise cost control.
The first side-track will be performed in well EZZ-18. The
drilling programme for the well intervention is currently being
finalised with ETAP. A casing log to determine casing integrity has
been agreed and is expected to be performed in March 2022.
The selection of the second side-track well has still not been
finalised and will be determined upon completion of a reservoir
study to optimise the selection of the most productive and
technically favourable well.
Zenith is expecting to achieve a gross production rate of 1,000
BOPD from the Ezzaouia concession upon completion of the two
sidetracks.
Robbana Concession
The Company has finalised plans to drill Robbana-3 ("ROB-3") in
the Robbana concession, a new well that will reach a total target
depth of approximately 2,500 metres, having designated a different
location to that previously considered following an in-depth
geological and reservoir review.
ROB-3 will target three proven hydrocarbon-bearing reservoirs in
the Cretaceous Upper Meloussi sandstone formation, from which
successful production has been achieved from the Robbana-1 well
("ROB-1") for many years.
In the event of a successful outcome, ROB-3 is expected to
produce approximately 150-200 BOPD.
Funding for ROB-3 is expected to be obtained by way of debt
financing and from the Company's existing cash reserves.
The necessary long-lead items have previously been acquired and
are already on location. The Company is currently in the process of
completing negotiations with a drilling contractor.
Drilling activities are scheduled to commence in June 2022,
following the completion of civil work activities and the
mobilisation of a drilling rig to the well location.
Update on ROB-1
The Company has suspended production activities from ROB-1
because of increasing water influx caused by a possible lack of
casing integrity.
A casing integrity test by to be run by wireline will shortly
take place to determine the cause of the water ingress in the
wellbore. The necessary action to restore production will be taken
accordingly.
Remedial action to restore production from ROB-1 will be planned
accordingly based on the results of the investigations
performed.
El Bibane concession
El Bibane is producing a stable rate of approximately 90 BOPD
net to Zenith.
Technical and reservoir investigations are ongoing.
Andrea Cattaneo, Chief Executive Officer of Zenith,
commented:
"We look forward to commencing our drilling activities both in
the Ezzaouia and Robbana concessions with the objective of
achieving material production increases from our Tunisian portfolio
by exploiting its significant untapped potential.
The Company is currently generating record revenue generation
and profitability across its portfolio, and it is our intention to
further increase our revenue generation by successfully maximising
our production levels in the very favourable current oil price
environment.
At the same time, Zenith is at advanced stage in reviewing
several opportunities to enrich our portfolio in Tunisia and Italy,
as well as in the Congo, and we look forward to providing further
updates in this regard in due course."
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK domestic law by virtue of the European Union (Withdrawal) Act
2018 ("MAR"). Upon the publication of this announcement via a
Regulatory Information Service ("RIS"), this inside information is
now considered to be in the public domain.
Further Information:
Zenith Energy Ltd Tel: +1 (587) 315 9031
Andrea Cattaneo, Chief Executive E: info@zenithenergy.ca
Officer
Allenby Capital Limited Tel: + 44 (0) 203 328 5656
- Financial Adviser & Broker
Nick Harriss
Nick Athanas
------------------------------
Celicourt Communications Tel: +44 (0) 208 434 2643
(Financial PR) E: zenithenergy@celicourt.uk
Mark Antelme
Jimmy Lea
------------------------------
Notes to Editors :
Zenith Energy Ltd. is an international oil and gas production
company, listed on the London Stock Exchange (LSE:ZEN) and the
Euronext Growth Market of the Oslo Stock Exchange (OSE:ZENA).
Zenith's development strategy is to identify and rapidly
complete value-accretive hydrocarbon production opportunities in
the oil & gas sector, specifically in Africa.
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END
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