Calgary, AB / TheNewswire / May 16, 2018 - Zenith Energy Ltd., ("Zenith" or the "Company"), (LSE: ZEN; TSX.V: ZEE), the international oil & gas production company operating the largest onshore oilfield in Azerbaijan, is pleased to provide an update on the due diligence process (the "Due Diligence") for the possible acquisition of an oil production asset located in Indonesia (the "Proposed Acquisition").
The Due Diligence encompasses an evaluation of the legal, accounting, petroleum and fiscal aspects of the Proposed Acquisition. Zenith is pleased to report that the Due Diligence is in progress and that the Company now expects to complete the Due Diligence by June 15, 2018. The extension will enable the Company to further examine certain areas of the Proposed Acquisition that require clarity to satisfy the Company's stringent Due Diligence requirements.
The Company's Board of Directors has decided to defer a decision on whether to proceed with the Proposed Acquisition until the second half of 2018 in order to focus on the near-term achievement of its operational objectives in Azerbaijan. The Company has exclusive rights to complete the Proposed Acquisition for a period of 90 days from March 23, 2018.
The Proposed Acquisition remains at an early stage and there is no guarantee that the transaction will be successfully completed. Completion of the Proposed Acquisition remains conditional on, inter alia, completion of satisfactory Due Diligence, the entering into of binding agreements and financing of the Proposed Acquisition. Zenith is considering a number of funding options to finance the potential transaction including debt and equity, whilst seeking to avoid significant dilution to existing shareholders.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information please contact:
Zenith Energy Ltd.
Chief Executive Officer
Tel: +1 (587) 315 9031
Vigo Communications - PR Adviser
Tel: +44 (0) 20 7830 9700
Daniel Stewart & Company Plc - (Joint Broker)
Robert Emmet- Corporate Broking
Nikhil Varghese- Corporate Finance
Tel: + 44 (0) 207 776 6550
Optiva Securities - (Joint Broker)
Tel: + 44 (0) 203 137 1903
Allenby Capital Limited - (Financial Adviser)
Tel: + 44 (0) 203 328 5656
Notes to Editors:
Zenith Energy Ltd. is an international oil and gas production company, dual listed on the TSX Venture Exchange and London Stock Exchange.
The Company operates the largest onshore oilfield in Azerbaijan following the signing of a 25-year REDPSA, (Rehabilitation, Exploration, Development and Production Sharing Agreement), with SOCAR, State Oil Company of the Azerbaijan Republic, in 2016.
The Company's primary focus is the development of its Azerbaijan operations by leveraging its technical expertise and financial resources to maximise low-cost oil production via a systematic field rehabilitation programme intended to achieve significantly increased revenue. Zenith also operates, or has working interests in, a number of natural gas production concessions in Italy. The Company's Italian operations produce natural gas, natural gas condensate and electricity.
Zenith's development strategy is to identify and rapidly seize value-accretive hydrocarbon production opportunities in the onshore oil & gas sector. The Company's Board of Directors and senior management team have the experience and technical expertise to develop the Company successfully.