TIDMZEN
RNS Number : 2371M
Zenith Energy Ltd
10 January 2023
January 10, 2023
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Exclusivity for Block 1, 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 the Ministry of Water and Mines of the Republic of Benin has
awarded Zenith Energy an exclusivity (the "Exclusivity") for a
period of three months to negotiate and finalise the terms of a
Production Sharing Contract ("PSC") for Block 1 containing the Sèmè
oilfield, offshore Benin ("Block-1").
The Company announced the submission of an offer for Block-1 on
September 22, 2022.
Andrea Cattaneo, Chief Executive of Zenith, commented:
"We are extremely pleased to have been granted the Exclusivity
to negotiate and finalise the terms of a PSC for Block-1 by the
authorities in Benin.
Block-1 represents a potentially transformational development
opportunity for Zenith because of its sizeable unexploited
potential, indicated by its independently assessed oil and gas
reserves and past production, and existing field
infrastructure.
We view Benin as an attractive jurisdiction for foreign
investment and we look forward with great enthusiasm to working
closely with the local authorities towards successfully formalising
the PSC."
About Block-1
-- Discovered in 1967 by Union Oil, Block-1 covers 551 sq. km
with over 355 sq. km of recent 3D seismic data taken between
2001-2014.
-- Located in shallow water (30m) offshore with onshore
facilities and tank farm for processing of oil production.
-- A proven oilfield, with significant unexploited potential,
having independently assessed recoverable reserves (2P) of 22-28
million barrels of oil and 428 billion cubic feet of natural gas
(Kerr McGee 2005) for the original Sèmè oilfield.
-- Has produced a reported 22 million barrels of oil to date,
with last commercial production having taken place in 1998 when oil
prices were below approximately US$10 per barrel.
-- 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 in 1998.
-- Average historical well production rates ranging between
1,500 - 3,000 barrels of oil per day.
-- The last operator is reported to have made infrastructure
investments for an amount exceeding US$100 million prior to exiting
the project due to low oil prices.
-- A new ' Sèmè North' oilfield (" Sèmè North") was discovered
in 2015 with a reported discovery of an additional 100 million
barrels of oil in place with estimated (2P) recoverable reserves of
16 million barrels utilizing a Recovery Factor of 16%. [i] It is
expected that improvements in the Recovery Factor might be achieved
with modern completion and drilling techniques to reach a Recovery
Factor of above 30%.
-- 27 wells have been drilled in Block-1: 24 in the original
Sèmè oilfield, with the last 3 wells having been drilled in 2014-15
to discover Sèmè North . These wells discovered and tested oil in
the H5 & H6 reservoirs, the same reservoirs that were producing
in the original Sèmè oilfield, in a separate structure. However,
due to the prevailing oil price at the time (approximately US$30)
further development activities were deemed non-commercial.
-- Significant development and exploration potential in the
emerging Syn-Rift play extending from neighbouring Nigeria.
-- Production facilities comprised of three platforms: two
located in the Sèmè Field, with the last being installed during
2013-2016 to develop the newly discovered Sèmè North. Zenith Energy
has already conducted preliminary site visits to inspect the
infrastructure.
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 Sèmè
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.
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 , Matt Bowld E: zenith@blytheray.com
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 the Middle East, Africa, and Europe through the
development of proven revenue generating energy 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.
*Endnotes
[i] This assessment has not been produced in accordance with
Canadian National Instrument 51-101, (NI 51-101), or other
internationally recognised standard.
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