Zenith Energy Ltd. (ZEN; ZENA), the international energy production and development company, is pleased to announce that it has signed a second MOU (the "MOU") with a company incorporated in Kazakhstan (the "Seller") to evaluate the potential acquisition of two oil development assets.
The Seller holds a 100% interest in two contiguous oil development assets located in the Kyzylorda Region of Kazakhstan (the "Potential Acquisition").
The Potential Acquisition is classified as an oil development asset because a discovery was made in 2014, and there is confirmed potential for commercial oil production activities. It is expected that drilling activities targeting the Jurassic section of formations located within the Potential Acquisition have significant production potential.
The purpose of the MOU is to formalise a framework whereby Zenith's interest in the Potential Acquisition may be completed subject to the completion of a rigorous technical and financial due diligence.
According to the terms of the MOU, commercial terms for the Potential Acquisition, if agreed between the parties, are to be formalised by way of a share purchase agreement on or before November 30, 2023.
The 2P (proven and probable) reserves of the Potential Acquisition have been quantified in the amount of approximately 4.5 million barrels of oil. Fully risked 3P (proven, probable, and possible) reserves are estimated around 62.5 million barrels of oil. These evaluations have not been performed in compliance with Canadian securities laws, specifically the COGE Handbook and National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.
Andrea Cattaneo, Chief Executive Officer, commented:
"We are pleased to have signed a second MOU for an oil development asset in Kazakhstan. Zenith's management and advisers have, in line with our development strategy, continued to explore additional acquisition opportunities with the objective of building a consolidated portfolio of near-term production and development assets.
The assets under review appear to have a clear pathway to oil production without the requirement for intensive technical and financial investment.
Funding of any potential transaction in Kazakhstan will not to be funded by way of equity.
We look forward to reporting on our exciting progress in Kazakhstan on or before the close of November 2023."
