Zenith Energy Ltd. has incorporated Zenith Energy Congo SA (“Zenith Congo”), a fully owned subsidiary of the Company, created under the laws of the Republic of the Congo.
Zenith Congo has been established at the request of the Ministry of Hydrocarbons for the purpose of receiving a new 25-year licence following the submission of a comprehensive commercial and technical offer (the "Offer") to the Ministry of Hydrocarbons of the Republic of the Congo for the award of a new 25-year licence for the Tilapia oilfield to be named "Tilapia II". For reference, submission of the Offer was first announced to the market on July 20, 2020.
The Company plans to operate Zenith Congo in parallel to its other fully owned subsidiary in the Republic of the Congo, Anglo African Oil & Gas Congo S.A.U ("AAOG Congo"), which, as publicly announced, has total receivables of approximately US$5.3 million from Société Nationale des Pétroles du Congo (“SNPC”).
As a result, and in agreement with the Ministry of Hydrocarbons, the Company has terminated the Plan for the Continuation of Activities" ("PCA"), first announced to the market on July 20, 2020, and returned operatorship of the Tilapia licence from AAOG Congo to a subsidiary of SNPC.
It is planned that, in the event the Offer is accepted by the Ministry of Hydrocarbons of the Republic of the Congo, the new operator of Tilapia II will be Zenith Congo.
Response to Media Speculation
The Company has become aware of speculation surrounding its activities in the Republic of the Congo.
It is the view of the Board of Directors that the aforementioned speculation is an attempt to create misplaced uncertainty amongst shareholders as to Zenith’s potential at this final stage in the assignation of a new 25-year licence for Tilapia.
Zenith is fully confident in its position in the Republic of Congo and believes that its future progress there will evidence the unsubstantiated, malicious nature of the rumours being circulated.
Andrea Cattaneo, Chief Executive Officer of Zenith, commented:
“We are looking forward with excitement to our journey in the Republic of the Congo following the possible acceptance of the Offer we have submitted. Furthermore, as announced on July 7, 2020, we are currently working to submit a parallel offer in partnership with a local company for a second licence in the vicinity of Tilapia. It is regrettable to observe damaging misinformation being disseminated online about the Company. However, we are fully confident in our position and the great potential of our near-term progress.”