Calgary, Alberta / TheNewswire / November 21, 2016 / Zenith Energy Ltd. (“Zenith” or the “Company”) is pleased to announce that the first two payments have now been received for invoices generated for producing Ural crude oil from the Muradxanli-Zardab-Jafarli field in Azerbaijan during August and September 2016. The crude oil was sold to SOCAR Marketing and Operations (“SOCARMO”), the trading arm of SOCAR, and payment was made in accordance with the Company's Oil World Market sales Agreement signed between Aran Oil Operating Company (“Aran”, the operating company within Zenith’s operations in Azerbaijan) and SOCARMO. Payments were delivered to Zenith Aran on the 29th of October and on the 15th of November in accordance with the Company’s expectations. Additional crude oil quantities have been formally delivered into the international pipeline network by Zenith Aran, creating additional invoices, and issued every 15 days. For the purpose of investor clarification, Zenith Aran’s crude oil is transported from the Shirvan oil terminal, domestically through the network of SOCAR pipelines, and then internationally, through Transneft, where it ultimately reaches the Novorossiysk port on the Black Sea. As an alternative, Aran may also choose to transport its crude oil to the Mediterranean Sea through the BTC (Baku-Tbilisi-Ceyhan) pipeline operated by BP British Petroleum.

 

Andrea Cattaneo, CEO and President, comments, “Zenith is exceptionally pleased with the rapid progression of commercial activity in Azerbaijan and delighted to note that the first payment for crude oil from the Muradxanli oil field was received two days in advance of the due date. The second payment further validates our confidence in the process.  These are landmark events for the Company as it signals the initiation of a new income stream with significant growth potential and confirms for shareholders that payment terms have been quickly and efficiently respected. Already at a production rate of 300 barrels per day, these payments equate to approximately $360,000 US per month. While management has always been confident in the quality and credibility of our buyer, SOCARMO, we believe it is important to communicate these results to our international investors so that they may share our confidence. Given the region’s extensive energy infrastructure and its proven functionality, Zenith is prepared to increase the scale of its activities. It is our plan to reinvest significant operational cash flow to generate sustainable ongoing investment into the development and optimization of our fields.”

 

About Zenith Energy Ltd.

 

Zenith Aran Oil Company Limited is a fully owned affiliate of Zenith Energy Ltd.  Zenith Energy Ltd focuses on the acquisition and further development of proven onshore oil and gas fields where production has declined over time, but which are capable of increased productivity following an injection of capital and optimization through its corporate engineering and technical expertise. To maximize shareholder value, Zenith targets acquisitions of production opportunities that offer strong logistics and close proximity to refineries and pipelines. Zenith’s management and directors have extensive international and governmental experience and possess the technical knowledge to execute this strategy.

 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that 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:

 

Jose Ramon Lopez-Portillo                                         Andrea Cattaneo

Chairman of the Board                                                 CEO & President

 

Email:                 info@zenithenergy.ca

Telephone:         (587) 315-9031

Telefax:                 (403) 775-4474

Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward-looking statements and information. The forward-looking statements and information are based on certain key expectations and assumptions made by Zenith. Although Zenith believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because Zenith can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. Zenith undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.