TIDMZEN
RNS Number : 2982A
Zenith Energy Ltd
22 September 2022
September 22, 2022
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Offer for Sèmè Field in Benin
Zenith Energy Ltd. (LSE: ZEN; OSE: ZENA) , the energy company
with proven revenue generating production, exploration and
development assets in Africa and Europe , is delighted to announce
that on September 15, 2022 (the last valid day for participation in
the offer submission process) it presented an offer (the "Offer")
to the relevant Ministry in the Republic of Benin for the award of
an initial nine-year licence to operate Block 1 containing the Sèmè
oilfield, offshore Benin ("Block-1").
About Block-1
-- A proven oilfield, with significant unexploited potential,
having estimated recoverable reserves (P2) of 22-28 million barrels
of oil and 428 billion cubic feet of natural gas (Kerr McGee
2005).
-- Has produced a reported 22 million barrels of oil to date,
with last production having taken place in 1998.
-- Historical recovery factor of 22%, leaving significant margin
for improvement of the recovery factor utilising modern completion
techniques, horizontal drilling, and improved 3D seismic.
-- Last produced at a rate of approximately 2,000 barrels of oil per day.
-- 23 wells have been drilled in Block-1, with the last well
having been drilled in 2009 by South Atlantic Petroleum (SAPETRO).
This well discovered oil, however, due to the prevailing oil price
at the time (approx. US$30) it was deemed uncommercial.
-- Located in shallow water (30m) offshore with onshore
facilities and tank farm for processing of oil production.
-- Discovered in 1967 by Union Oil, Block-1 covers 551 sq. km
with over 355 sq. km of recent 3D seismic data.
-- Significant development and exploration potential in the
emerging Syn-Rift play extending from neighbouring Nigeria.
-- Production facilities comprised of three platforms, the last being installed in 2014-2015.
Andrea Cattaneo, Chief Executive of Zenith, commented:
"We are delighted to have submitted this Offer for what is an
extremely exciting opportunity in Benin, representing the largest
and most prospective oilfield in the country.
"Block-1 has significant untapped, independently assessed oil
and gas reserves, a proven history of material oil production and
existing field infrastructure. These key qualities make it a
potentially highly enriching addition to our portfolio and fully
satisfy the key criteria defining our growth strategy.
"Benin is a stable and attractive jurisdiction for foreign
investment, and we look forward with great enthusiasm to working
closely with the local authorities to ensure we achieve a fruitful
and enduring partnership in the event our Offer is accepted ."
Details of the Offer and Next Steps
The Company has presented an offer that outlines certain
investment commitments and terms to be negotiated as part of an
award for an initial nine-year licence.
The Offer contains specific details surrounding how the Company
will restore and expand the productivity of Block-1. Specific
geological attention will be directed towards developing the
emerging Cretaceous Play along the West African coast, which has
proven to be a highly prolific basin extending from Côte d'Ivoire,
Ghana to the West, to the east in Nigeria, with the large 'Ogo' oil
and gas discovery, as well as producing in the Aje Field.
If Zenith's Offer for Block-1 is accepted, Zenith will progress
in completing a rigorous due diligence process and begin
negotiations with the Ministry aimed at finalising a draft
Production Sharing Agreement to be approved by the legislature of
Benin (in accordance with the Hydrocarbon Code).
Operationally, following potential acceptance of the Offer, the
Company will seek to use the existing infrastructure installed in
2015, where previous development was stalled due to the low oil
price environment at the time, to rapidly restore commercial
production in the current high oil price climate for the benefit of
the citizens of the Republic of Benin and Zenith Energy
shareholders.
As part of the Offer, the Company has also presented a
comprehensive social development plan, outlining agricultural
community engagement initiatives aimed at fostering productivity
and local employment, in addition to a sustainable development plan
that takes into consideration the natural history of the region and
places environmental sustainability at the heart of the Company's
business development activities in Benin.
About Benin's Oil Industry
In recent years, there has been an attempt to revive domestic
oil production in Benin following the previous involvement of
various Western oil companies between 1984-1998, including the
Norwegian Saga Petroleum.
In late 2019, CNPC signed a construction and operation agreement
with the Government of Benin for the construction of the
Niger-Benin Crude Pipeline, a 1,980km cross-border crude pipeline
connecting the Agadem Rift Basin (ARB) region in Niger to Port Seme
Terminal in the Republic of Benin. Construction of the pipeline is
underway and is expected to be completed by the close of 2023.
Benin is a founding Member of the African Petroleum Producers'
Organization ("APPO"), and its Minister in charge of Hydrocarbons
serves as Vice-President of the APPO.
-ENDS-
Further Information:
Zenith Energy Ltd
Tel: +1 (587) 315 9031
Andrea Cattaneo, Chief Executive E: info@zenithenergy.ca
Officer
BlytheRay - Financial PR/IR Tel: +44 207 138 3204
Tim Blythe, Megan Ray , Madeleine E: zenith@blytheray.com
Gordon-Foxwell
Alternative Resource Capital -
Broker Tel: +44 (0) 207 186 9004
Tel: + 44 (0) 207 186 9005
Alex Wood
Keith Dowsing
Notes to Editors :
Zenith Energy Ltd. is a revenue generating, independent energy
company with production, exploration and development assets in
Tunisia, Italy and the Republic of the Congo, including electricity
generation in Italy. The Company is listed on the London Stock
Exchange Main Market (LSE: ZEN) and the Euronext Growth of the Oslo
Stock Exchange (OSE: ZENA).
Zenith's strategic focus is on pursuing transformational
opportunities in Africa and Europe through the development of
proven revenue generating oil, gas, and electricity production
assets, as well as low-risk exploration activities in assets with
existing production.
For more information, please visit: www.zenithenergy.ca
Twitter: @zenithenergyltd
LinkedIn: https://bit.ly/3A5PRJb
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.
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