Reactivation of Sant'Andrea concession in Italy

RNS Number : 3660S

Zenith Energy Ltd

13 July 2022

 

July 13, 2022      

ZENITH ENERGY LTD.

("Zenith" or the "Company")

Reactivation of Sant'Andrea concession in Italy

Zenith Energy Ltd. (LSE: ZEN; OSE: ZENA), the energy company with proven revenue generating production, exploration and development assets in Africa and Europe, is pleased to announce that it is finalising plans to reactivate the Sant'Andrea natural gas production concession ("Sant'Andrea" or the "Concession") located in onshore Italy, with production expected to commence in Q4 2022. 

Overview of Sant'Andrea

The Concession covers 164.32 square kilometres and is located in the Veneto region of North-Eastern Italy. It was first granted in 1992 and is due to expire in 2027. Two wells have been drilled within the Concession, namely S. Antonio-1 and Anzano-1.

The Company plans to reactivate the S. Antonio-1 well, with an expected initial production rate of 1,300 cubic metres of natural gas per day.

Monthly fixed production costs are expected to be approximately EUR 3,000 with estimated net revenues of approximately EUR 40,000 to EUR 50,000 per month. 

Zenith, via its Italian subsidiary, holds a 40% interest in the Concession. The Company's partners in Sant'Andrea have communicated that they do not intend to fund the reactivation of the Concession. Zenith will therefore receive full entitlement to the production revenue to be received from Sant'Andrea, as well as bearing the full costs associated with reactivation of the Concession (approximately EUR 20,000). 

Luca Benedetto, Chief Financial Officer, and Managing Director of Italian operations, commented: 

"We have embarked on a gradual strategy of optimising our Italian portfolio, parts of which have remained dormant for some time, in the context of the increasing necessity for European domestic energy security and a highly encouraging pricing climate.

It is our intention to continue to assess other, potentially much larger, opportunities for development within our Italian portfolio in the foreseeable future."  

-ENDS-

 

Further Information:

Zenith Energy Ltd  Andrea Cattaneo, Chief Executive Officer	Tel: [phone] E:       [e-mail]
BlytheRay - Financial PR/IR Tim Blythe, Alice McLaren, Madeleine Gordon-Foxwell	Tel: [phone] E: [e-mail]
Alternative Resource Capital - Broker  Alex Wood Keith Dowsing	Tel: [phone] Tel: + 44 (0) 207 186 9005

Notes to Editors :                                   

Zenith Energy Ltd. is a revenue generating, independent energy company with production, exploration and development assets in Tunisia, Italy and the Republic of the Congo, including electricity generation in Italy. The Company is listed on the London Stock Exchange Main Market (LSE: ZEN) and the Euronext Growth of the Oslo Stock Exchange (OSE: ZENA).

Zenith's strategic focus is on pursuing transformational opportunities in Africa and Europe through the development of proven revenue generating oil, gas and electricity production assets, as well as low-risk exploration activities in assets with existing production.

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"). Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

 

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