Zenith Energy

Nigeria

Zenith Energy is an international oil, gas and electricity production and development company with existing production operations in Italy and Tunisia, having recently completed a number of acquisitions in-country.

Zenith Energy is dual listed on the Main Market of the London Stock Exchange (ZEN) and the Euronext Growth of the Oslo Stock Exchange (ZENA). The company’s strategic goal is to acquire oil and gas production assets, often divested by much larger players, to enrich its portfolio and rapidly grow in size to achieve a daily production rate of more than 10,000 bopd.

A TRANSFORMATIONAL CAMPAIGN: In terms of near-term acquisition activities, the company is currently in the process of negotiating a new 25-year production-sharing contract for the potentially highly productive Tilapia oilfield in the Republic of Congo, as well as having recently signed an exclusivity agreement for the possible acquisition of an equity stake in a risk-service contract for OML 141 in Nigeria. These two transactions are viewed by the Board as potentially “company-making.”
The recent resurgence in energy prices has been extremely positive for Zenith Energy. The company’s Italian energy production portfolio has been generating record profitability, having registered an approximate increase of 180% in profitability for its operations at the Torrente Cigno concession, where low-grade sour gas is used to generate electricity.
Similarly, Zenith Energy’s strategy of acquiring producing oil and gas assets in Africa has delivered favourable returns in the form of significant production revenue, registering a large increase in value in view of the current high oil price environment.
Recent highlights include the sale of approximately USD 4.5 million of oil production from its newly acquired Tunisian portfolio, which is clear evidence of the benefits of having a focus on cash-generating production assets, and constitutes an important milestone in its journey towards becoming a well-funded, mid-tier oil and gas production company.
The recent commencement of workover activities in Tunisia exemplifies the company’s strategy of acquiring neglected assets with large unexploited reserves and immediately commencing operational activities to maximise production. Zenith intends to replicate this strategy in other jurisdictions, including Nigeria.

DRILLING ASSETS: One of Zenith’s distinctive traits is that it owns and operates a 1,200-hp drilling rig and a workover rig. This enables the company to reduce costs by way of direct oversight and mitigating its reliance on third-party oilfield service companies, who may often cause delays due the unavailability of key operational equipment or poor performance.
Owning its own drilling and workover equipment also represents an attractive proposition to potential partner companies who see the value in directly operating key operational equipment and may give Zenith equity in their licences in lieu of payment for drilling services.
The company looks forward to further delivering on this strategy by acquiring additional new production assets in Africa, with a specific focus on Nigeria, the Republic of Congo and Tunisia.

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