Zenith Energy Ltd. (ZEN; ZENA; ZENAF), the listed international energy production and development company, is pleased to announce that, as it is now in the advanced stage of finalising terms for the potential acquisition of oil production and development assets, it has incorporated a subsidiary in the Republic of Kazakhstan, named Zenith Munay LLP.
With reference to the three memorandums of understandings (the "Memorandums") announced to the market during the month of September 2023, the Company is pleased to announce that after comprehensive technical, legal, and financial due diligence, it has agreed to formalise a pre-contractual framework with the seller for an opportunity comprising two oilfields with a near-term production potential of approximately 400 barrels of oil per day, located in the Atyrau Region of Kazakhstan (the "Potential Acquisition").
The Company expects to soon be able to formalise a binding agreement for completion of the Potential Acquisition, subject to local regulatory approvals, and will update the market accordingly.
Andrea Cattaneo, Chief Executive Officer, commented:
"Zenith has made significant progress in its business development activities in the Republic of Kazakhstan, having evaluated a great number of potential opportunities.
It is our intention to achieve circa 400 barrels of oil per day as a starting point prior to gradually scaling up production via field rehabilitation operations and the drilling of new wells made possible by acquiring an asset with a favourable geology and material reserves.
We look forward with enthusiasm to our near-term progress and to delivering on our publicly announced strategy of being a profitable, revenue generating oil production and development business."