Zenith Energy has announced that Zenith Overseas Assets Holdings Ltd. (ZOA), its fully owned subsidiary, has entered into a share purchase agreement (SPA) for the acquisition of a 100 percent interest in the issued, allotted, outstanding and fully paid-up share capital of Canadian North Africa Oil & Gas Ltd. (CNAOG) (previously named CNPC International (Tunisia) Ltd), a 100% subsidiary of CNPC International Ltd.
CNAOG holds an undivided 22.5% interest in the North Kairouan permit and the Sidi El Kilani Concession in Tunisia (“SLK” or the “Concession”), together with 25 Class B shares in CompagnieTuniso-Koweito-Chinoise de Pétrole (“CTKCP”), the operator, representing 25% of the issued share capital of CTKCP.
Terms
Pursuant to the terms of the SPA, ZOA has acquired CNAOG for a consideration of US$1,658,680, paid by the Company upon completion. As at the Completion date, the volume of crude oil produced from the Concession and allocated to and received by CNAOG, which has not been sold or otherwise disposed of, amounts to approximately thirty thousand (30,000) barrels of crude oil.
The Company confirms that the terms of the SPA constitute a new transaction, and are in full and final replacement of the terms previously outlined in Zenith’s announcement dated September 8, 2020.
“The Board is delighted to have now completed Zenith’s acquisition of an equity stake in the SLK concession, providing Zenith with immediate additional daily production revenue in Tunisia and an exciting future in developing SLK which has significant unexploited potential.
The Company will now begin investing technical management time and resources towards the performance of targeted field rehabilitation and drilling activities to gradually increase production from SLK.
We are also pleased to have increased our footprint in Tunisia, a country where we are now increasingly well-established as an oil and gas producer and where we hope to further consolidate our presence.
I thank CNPCI for their constructive assistance in successfully concluding this transaction. We look forward to exploring further opportunities for cooperation with them in due course.
Similarly, we shall seek to provide further updates to shareholders on other areas of long-held focus between now and the close of the year,”Andrea Cattaneo, Chief Executive Officer of Zenith, commented.
