BAKU, Azerbaijan, Feb.12
By Leman Zeynalova – Trend:
Canadian Zenith Energy Ltd. has entered into final stage negotiations with a national oil authority to secure a material oil production license in West Africa, Trend reports citing the company.
The company said that the potential acquisition, formerly operated by a major international oil company, last produced at a rate in excess of 1,000 barrels of oil per day.
“Following extensive due diligence, the company believes an initial production rate of approximately 1,000 barrels of oil per day can be achieved via a rehabilitation program, the costs of which Zenith expects will be repaid within a timeframe of 2-3 months once production has successfully been restored using a conservative oil price benchmark of $40 per barrel,” reads a message from Zenith.
Zenith said the potential acquisition is in line with the company's strategy of identifying near-term, existing production assets which do not require material upfront capital investment and have the potential to fulfill Zenith's mid-cap development objectives.
Zenith energy is the operator for development of Muradkanli-Jafarli-Zardab block of fields onshore Azerbaijan.
As Andrea Cattaneo, CEO of Zenith Energy, said, it has been a busy start to the year for Zenith as the company continues to focus on our strategy of identifying and completing low-cost acquisitions with significant untapped production potential.
“We are actively seeking to enrich our portfolio with the acquisition of AAOG Congo which we believe has the potential to deliver transformational value via successful drilling activities in the Mengo and Djeno horizons. Recent progress has been very encouraging, and I look forward to updating shareholders further in due course,” said the CEO.
Cattaneo pointed out that this is in addition to consolidating the company’s natural gas production portfolio in Italy with increased, consistent production revenue which has the potential to be further increased via a series of low-risk well interventions.
“Zenith has also recently taken steps to strengthen its advisory team with two key appointments who we anticipate will contribute valuable knowledge and expertise to our ambitious expansion goals in Africa,” he added.
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