Zenith Energy has announced that it has now completed the acquisition of a 100 percent interest in the fully owned subsidiary of Candax Energy Limited in Barbados, Ecumed Petroleum Zarzis Ltd, which holds a 45% interest in the Tunisian onshore Ezzaouia Concession.
Terms of the Acquisition
Pursuant to the terms of the SPA, ZEAL has acquired 100% of EPZ for the aggregate amount of US$150,000, which has now been paid, as well an additional US$100,000 to be satisfied by the issue of ordinary shares in the share capital of Zenith to be issued within sixty days of completion and a royalty payable and calculated as US$0.35 per each barrel of hydrocarbons produced from the Ezzaouia Concession and allocable to EPZ, with the royalty not being less than an amount of US$50,000 per annum for a period of ten years.
Andrea Cattaneo, Chief Executive Officer of Zenith, commented:
“We are very pleased to have achieved successful completion of this transaction which gives Zenith monthly oil production revenue of approximately US$400,000.
Ezzaouia has significant unexploited potential which we intend to develop progressively via a combination of workover and drilling activities to be commenced following consultation with our partners in the very near future.
In addition, we have further reinforced our settlement in Tunisia, enabling a demonstration of our technical and financial capabilities locally.
The Board strongly believes in Zenith’s successful establishment in Tunisia and we intend to capitalise on certain additional possible acquisition opportunities that may present themselves in the near-term.”