TIDMZEN
RNS Number : 8774B
Zenith Energy Ltd
07 June 2023
June 7, 2023
ZENITH ENERGY LTD.
("Zenith" or the "Company")
ICSID Arbitration against the Republic of Tunisia
Zenith Energy Ltd. (LSE: ZEN; OSE: ZENA) , the international
energy production and development company , announces the formal
submission of various legal proceedings against the Republic of
Tunisia, with a total cumulative claimed amount of at least US$48
million.
Zenith's fully owned subsidiaries (together, the "Investors")
have submitted a request for arbitration against the Republic of
Tunisia before the International Centre for Settlement of
Investment Disputes in Washington DC ("ICSID") - (the
"Arbitration").
Background to the Arbitration
The request for Arbitration before the ICSID was submitted in
accordance with article 8 of the Agreement signed between the
government of the United Kingdom of Great Britain and Northern
Ireland and the government of the Tunisian Republic in 1989 for the
Promotion and Protection of Investments.
The Arbitration has been launched following a series of actions
undertaken by the Tunisian government to the material detriment of
the commercial interests of the Investors in the Republic of
Tunisia, including, inter alia, unreasonable and arbitrary
obstructions in relation to the development of the Sidi El Kilani
and Ezzaouia concessions.
More specifically, these include actions in contravention to,
inter alia, the terms of the Sidi El Kilani and Ezzaouia licenses
respectively, and unjustified obstructions for processing the sale
of produced oil.
Prior to initiating the Arbitration, Zenith and its subsidiaries
have, in good faith, applied their best efforts towards engaging
constructively with the relevant bodies in the Republic of Tunisia
to address these matters. However, in view of the unsuccessful
nature of these efforts to date, the Investors have been compelled,
to safeguard their commercial interests and legal rights, to launch
the Arbitration.
The Investors have engaged Gide Loyrette Nouel, a legal firm
with a specialisation in high-level dispute resolution, as legal
counsel in connection with the Arbitration.
The Investors can confirm that, in the interests of preserving
the Company's cash reserves at a time of intensive expansion and
development activity, they are in advanced negotiations with a
specialist third-party litigation funder for a 'no win-no fee'
financing arrangement to support all the costs in connection with
the Arbitration.
The Board, based on due and careful consideration surrounding
the merits of the Arbitration and specialist legal advice received,
believes there will either be a successful outcome resulting from
the Arbitration or there will be an amicable settlement in due
course.
Update on Tunisian production and development portfolio
The Company can confirm that it continues to operate its
production and development portfolio in the Republic of Tunisia,
including the Robbana and El Bibane concessions which it holds
directly with a 100% interest, whilst negotiations are ongoing with
the local authorities in Tunisia with the objective of addressing
the underlying causes of the aforementioned Arbitration.
The Robbana Concession is producing approximately 20-25 barrels
of oil per day, with a total accumulation of approximately 8,000
barrels of oil in stock which is ready for sale subject to local
export permissions being granted.
Production from the El Bibane Concession has been suspended due
to necessary maintenance activities.
Further, for the avoidance of doubt, the Company maintains that
its subsidiary's 50 percent ownership of MARETAP, the joint
operating company for the Ezzaouia Concession, remains
unchanged.
In view of the sensitive nature of the ongoing proceedings and
discussions, the Company will not be providing further comment
until there are material updates.
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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