Zenith Energy Ltd First Agreement for USA acquisition campaign (4247B)
02 Junio 2023 - 1:00AM
UK Regulatory
TIDMZEN
RNS Number : 4247B
Zenith Energy Ltd
02 June 2023
June 2, 2023
ZENITH ENERGY LTD.
("Zenith" or the "Company")
First Agreement for USA acquisition campaign
Zenith Energy Ltd. (LSE: ZEN; OSE: ZENA) , the international
energy production company, is pleased to announce that it has
entered into an agreement (the "Agreement") with Stateside Energy
LLC, a company registered under the laws of the State of Oklahoma,
United States of America (hereinafter "Stateside") to acquire and
operate a portfolio of oil production and development licences in
Oklahoma, as well as certain other States in the USA (the
"Targets").
Key Terms
-- Stateside is an oil and gas operator with a portfolio of
seven oil wells in the State of Oklahoma.
-- Under the Agreement, Zenith will incorporate a wholly owned
special purpose vehicle in the United States of America for the
purpose of acquiring oil wells and licence blocks in the State of
Oklahoma and certain other States in USA (the "Newco").
-- Stateside will make available its personnel in Oklahoma for
the purpose of assisting the business development of Newco.
-- Zenith will consider providing Stateside with the following
incentive bonus structure based upon the Newco reaching the
following incremental average production targets: 75, 125, 175 and
225 barrels of oil per day (the "Milestones").
-- Upon the achievement of each Milestone Zenith will consider
issuing Stateside certain amounts payable by way of issuing equity
securities (the "Incentive Bonus Payments").
-- Stateside agrees to sell its oil production wells to Newco,
subject to the completion of a satisfactory due diligence by
Zenith, for a nominal consideration.
-- It is planned that the Newco will negotiate the acquisition
of approximately 70 oil production wells located on property leases
totalling approximately 3,200 acres located in the State of
Oklahoma for sale by a third-party identified by Stateside (the
"Potential Vendor").
-- The Potential Vendor has indicated it also intends to sell
certain oilfield service equipment including, inter alia, a pulling
unit and a tank truck, for an amount to be agreed.
-- Zenith has agreed to invest approximately US$2 million,
subject to the completion of a satisfactory due diligence, for the
acquisition of Targets to be introduced by Stateside.
Andrea Cattaneo, Chief Executive Officer, commented:
"We are pleased to formally begin our expansion in the USA by
way of the Agreement with Stateside. The advantages of operating in
North America are readily apparent, and primarily include the speed
of execution for transactions, with the resulting delivery of
potential immediate oil production to Zenith, and the relatively
conspicuous lack of bureaucratic delays and other detrimental
impediments to corporate development seen elsewhere.
The Company is currently negotiating the potential acquisition
of various oil production assets with significant development
potential across the USA. We look forward with enthusiasm to
potentially completing these in an expeditious manner, subject to
rigorous due diligence, by leveraging one of our strengths:
deal-making ."
Further Information:
Zenith Energy Ltd
Tel: +1 (587) 315 1279
Andrea Cattaneo, Chief Executive E: info@zenithenergy.ca
Officer
BlytheRay - Financial PR/IR Tel: +44 207 138 3204
Tim Blythe, Megan Ray, Matt E: zenith@blytheray.com
Bowld
Allenby Capital Limited - Financial Tel: + 44 (0) 203 328 5656
Adviser
Nick Harriss
Daniel Dearden-Williams
Miriad Limited - Media Enquiries Tel: +44 7867527659
Zak Mir E: zak@zakmir.com
Notes to Editors :
Zenith Energy Ltd. is a revenue generating, independent energy
company with production, exploration and development assets in
Africa, the Middle East and Europe, 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 development
opportunities 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.
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