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Zenith Energy ups gas sales from Italian assets

Oil&Gas Materials 19 November 2019 16:34
Zenith Energy ups gas sales from Italian assets

BAKU, Azerbaijan, Nov.19

By Leman Zeynalova – Trend:

During three and six months ended September 30, 2019, Canada’s Zenith Energy company sold 2,647 and 5,499 mcf (million cubic feet) of natural gas from its Italian assets, as compared to 2,641 and 3,978 mcf of natural gas in the 2018 similar period, Trend reports with reference to the company.

During the three and six months ended September 30, 2018, the company sold 2,669 and 5,448 MWh of electricity from its Italian electricity production assets, as compared to 1,883 and 4,566 MWh for the corresponding period of 2018, said the company.

Zenith Energy generated gross revenues from oil and natural gas of 2.651 million Canadian dollars (2018 – 3.803 million Canadian dollars) and from electricity $305,000 Canadian dollars (2018 – 321,000 Canadian dollars) in the six months ended September 30, 2019.

The sale price price per MCF of natural gas was 7.09 Canadian dollars during the six months ended September 30, 2019, as compared to 6.29 Canadian dollars per MCF during the three months ended June 30, 2018.

In general, gas prices are also impacted by fluctuations in the base price of European gas rates which is used in the formulas to establish the price of natural gas.

On August 27, 2011, Zenith’s Italian subsidiary, Canoel Italia S.r.l. (“Canoel”), was approved in its role as operator by the relevant Italian authorities and is currently submitting environmental reports and conducting the final assessment of on-site equipment.

On June 6, 2013, the Company completed the acquisition of various working interests in 13 Italian producing and exploration assets from Medoilgas Italia S.P.A. and Medoilgas Civita Limited, each a subsidiary of Mediterranean Oil and Gas Plc after receiving the final approval from the Italian Government for the change of ownership.

On October 1, 2015, the Company acquired cogeneration equipment and facilities which has enabled the company to produce electricity from the natural gas produced from the Masseria Vincelli 1 well, and to sell its electricity production directly into the national energy grid. The Company’s share of estimated total proved plus probable natural gas net reserves were assessed at 16,280 Mmscf and condensate net reserves were assessed at 255 Mbbls as of March 31, 2019.

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