{"id":11247,"date":"2021-11-29T16:53:31","date_gmt":"2021-11-29T16:53:31","guid":{"rendered":"https:\/\/www.oilnewskenya.com\/?p=11247"},"modified":"2021-11-29T16:53:31","modified_gmt":"2021-11-29T16:53:31","slug":"nigeria-zenith-energy-noble-hill-network-enter-option-agreement-for-oml-141-rsc","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-zenith-energy-noble-hill-network-enter-option-agreement-for-oml-141-rsc\/","title":{"rendered":"NIGERIA: Zenith Energy, Noble Hill-Network Enter Option Agreement for OML 141 RSC"},"content":{"rendered":"

Zenith Energy <\/span>has entered into an Option Agreement with <\/span>Noble Hill-Network Limited, a private Nigerian oil and gas company.<\/span><\/p>\n

NHNL is the sole, 100% holder of a Risk Service Contract for the development of the North-West Corner of OML 141 in Nigeria, defined as the Risk Service Contract Area, which covers 105 square kilometres of the Niger Delta region and contains the potentially highly productive Barracuda and Elepa South oilfields, as well one prospective field with an estimated 232.7 million barrels of discovered oil (Degeconek 2019 CPR).<\/span>\u00a0<\/span><\/p>\n

\u00a0<\/span>Terms of the Option<\/span><\/strong><\/p>\n

\u00a0<\/span>The object of the Option is to provide Zenith with the opportunity to jointly develop the RSCA of OML 141 with NHNL.<\/span><\/p>\n

Plans have already been finalised to drill, test, and complete the Barracuda 5 well (B-5), which is situated between two previously drilled wells that have both encountered significant hydrocarbons. In the event of a successful outcome, production will commence immediately using a barge-mounted Early Production Facility to initially transport the produced oil to a nearby floating storage and offloading vessel for subsequent monetisation.<\/span><\/p>\n

The consideration to exercise the Option and thereby acquire a 42% interest in NHNL has been agreed as US$20,000,000 (twenty million United States Dollars), payable in 7 instalments over 270 days each of US$3,000,000, except for the first and the last which will satisfy the remaining Consideration payable.<\/span><\/p>\n

\u00a0<\/span>NHNL will use the Consideration to fund the drilling of B-5. The Company has been informed that the drilling location for B-5 has already been acquired by NHNL and all necessary civil works (including dredging and clearing of the designated well location) have been performed in preparation for the mobilisation of a barge-mounted drilling rig.<\/span><\/p>\n

A suitable and fully inspected drilling rig has been identified and a site visit is planned in\u00a0mid-December 2021, with the expectation of signing a drilling contract in\u00a0January 2022\u00a0to begin operations during the first quarter of 2022. Production from the Barracuda oilfield is expected to begin during the second quarter of 2022 at a rate of approximately 4,000 barrels of oil per day. \u00a0<\/span><\/p>\n

\u00a0<\/span>Further development and\u00a0drilling activities are planned to follow the drilling of B-5, with the locations for Barracuda wells 6,7\u00a0and 8 having already been identified. In\u00a0the event the Option was\u00a0exercised, and Zenith thereby held\u00a042% of NHNL, it\u00a0would only be required to fund its share of\u00a0future development work.<\/span><\/p>\n

\n

The Option will expire on\u00a0January 15, 2022.\u00a0<\/span><\/p>\n

Andrea Cattaneo, Chief Executive Officer of Zenith, commented:<\/span><\/p>\n

“We are delighted to have signed an Option to acquire an exclusive material interest in NHNL, the sole holder of the RSC for OML 141, containing the Barracuda and Elepa South Oilfields, following our ongoing due diligence exercise.<\/span><\/p>\n

The near-term drilling of B-5 is an opportunity for Zenith to rapidly achieve a material progression in its development by exploiting the considerable production potential of the Barracuda oilfield. We view the risk profile of drilling B-5 as low to medium primarily, amongst other factors, due to the strongly confirmed presence of hydrocarbons in nearby wells accessing the same formations.\u00a0\u00a0<\/span><\/p>\n

Further, it should be noted that the Option, and its potential exercise, are not subject to external approvals or other bureaucratic procedures resulting in delays, meaning that Zenith and NHNL can speedily progress in executing operational activities.<\/span><\/p>\n

We are confident in our ability to finance the Option by using multiple sources of funding, specifically funding from pan-African financial institutions<\/span>.<\/span><\/p>\n

Finally, while this transaction would represent the largest single investment in Zenith’s history, it will in no way divert attention away from our development in\u00a0Tunisia, and especially in the\u00a0Republic of the Congo, where we expect to finally achieve significant progress in due course<\/span>.”\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Zenith Energy has entered into an Option Agreement with Noble Hill-Network Limited, a private Nigerian oil and gas company. NHNL is the sole, 100% holder of a Risk Service Contract … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":8915,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[7442,11,7444],"tags":[9816,9817,1749,9818,9148,7518],"class_list":["post-11247","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-countries","category-top-news","category-west-africa","tag-barracuda-oilfield","tag-elepa-south-oilfields","tag-nigeria","tag-noble-hill-network","tag-oml-141","tag-zenith-energy","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/Nigeria-Oil-Rig.jpg?fit=907%2C535&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-2Vp","jetpack-related-posts":[{"id":11595,"url":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-zenith-energy-gets-extension-of-option-agreement-for-oml-141-rsc\/","url_meta":{"origin":11247,"position":0},"title":"NIGERIA: Zenith Energy Gets Extension of Option Agreement for OML 141 RSC","author":"","date":"January 13, 2022","format":false,"excerpt":"Zenith Energy has announced that it has agreed an extension to the Option Agreement with Noble Hill-Network Limited announced on November 29, 2021, for the purchase of a 42% (forty-two percent) interest in the share capital of NHNL. NHNL is a private Nigerian oil and gas company and the registered\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/11\/Nigeria-Aje-field.jpg?fit=807%2C807&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/11\/Nigeria-Aje-field.jpg?fit=807%2C807&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/11\/Nigeria-Aje-field.jpg?fit=807%2C807&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/11\/Nigeria-Aje-field.jpg?fit=807%2C807&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":11946,"url":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-zenith-energy-elects-not-renew-the-option-agreement-for-oml-141\/","url_meta":{"origin":11247,"position":1},"title":"NIGERIA: Zenith Energy Elects not Renew the Option Agreement for OML 141","author":"","date":"March 2, 2022","format":false,"excerpt":"Zenith Energy has announced that it has elected to not renew the Option Agreement with Noble Hill-Network Limited, first announced to the market on November 29, 2021, for the purchase of a 42% (forty-two percent) interest in the share capital of NHNL. Zenith says it remains of the view that\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/03\/OML-141-2.jpg?fit=576%2C394&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/03\/OML-141-2.jpg?fit=576%2C394&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/03\/OML-141-2.jpg?fit=576%2C394&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":10082,"url":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-adm-energy-invests-in-the-development-of-the-barracuda-oil-field-in-oml-141\/","url_meta":{"origin":11247,"position":2},"title":"NIGERIA: ADM Energy Invests in the Development of the Barracuda oil field in OML 141","author":"","date":"March 23, 2021","format":false,"excerpt":"ADM Energy has announced that it has conditionally agreed to invest in the development of the Barracuda oil field in OML 141, an existing discovery and near-term production asset in swamp\/shallow waters offshore Nigeria.\u00a0 The investment will be made by way of an acquisition of a 51% interest in K.O.N.H.\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/03\/OML-141-2.jpg?fit=576%2C394&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/03\/OML-141-2.jpg?fit=576%2C394&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/03\/OML-141-2.jpg?fit=576%2C394&ssl=1&resize=525%2C300 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"Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/03\/OML-141-2.jpg?fit=576%2C394&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/03\/OML-141-2.jpg?fit=576%2C394&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/03\/OML-141-2.jpg?fit=576%2C394&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":10249,"url":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-adm-energy-enters-barracuda-field-collaboration-agreement\/","url_meta":{"origin":11247,"position":4},"title":"NIGERIA: ADM Energy Enters Barracuda Field Collaboration Agreement","author":"","date":"April 22, 2021","format":false,"excerpt":"ADM Energy PLC , a natural resources investing company, is pleased to announce it has entered into a non-binding collaboration agreement with OES Energy Services Limited, Nigeria's largest swamp rig services provider, and 4Mation Drilling Services Limited , a solution provider in the energy sector.\u00a0 ADM, OES and 4Mation plan\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/03\/OML-141-2.jpg?fit=576%2C394&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/03\/OML-141-2.jpg?fit=576%2C394&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/03\/OML-141-2.jpg?fit=576%2C394&ssl=1&resize=525%2C300 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