Beginning of Comprehensive Reservoir Study

(TheNewswire)

November 2, 2018 / TheNewswire / Calgary, AB - Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; TSX.V: ZEE), the dual listed international oil & gas production company operating the largest onshore oilfield in Azerbaijan, is pleased to announce that it has begun a comprehensive reservoir engineering study to achieve the optimisation of production from active and shut-in production wells across the Muradkhanli, Jafarli and Zardab oilfields in Azerbaijan. 

The findings of the reservoir study will complement the two comprehensive geological studies previously completed by the Company, announced on August 13, 2018, whose scope was focused on the selection of infill drilling locations across its field area in preparation for the beginning of drilling activities in Azerbaijan. 

The primary goal of the reservoir study will be the achievement of a material improvement in Zenith's understanding of its reservoir base in order to perform well interventions, including sidetracks and perforations, that might unlock significant reserves in historically highly productive wells. The study will also result in the creation of a fully digitalised database that will incorporate all existing printed reservoir data. 

Update on Well C-37 Operations 

Zenith can confirm that the preparatory work required prior to the beginning of drilling activities, announced on October 15, 2018, is ongoing and that the electrical submersible pump has been pulled out of the hole. The Company's operational team has begun running in the hole with a scraper to the production casing shoe at a depth of 3,904 metres. A series of well investigations by wireline will follow the completion of this work, as well as the performance of civil works including the construction of a drilling pad. 

The Company will provide an update once the aforementioned preparatory work is concluded and a 180-ton rig, contracted from a local service company, is mobilised to the well location to commence drilling operations.

Andrea Cattaneo, Chief Executive Officer, commented:

"I am satisfied with the significant progress we are making in a number of areas.  Zenith's recent appointments reflect an intention to maximise our geological, reservoir engineering and technical understanding in order to achieve concrete operational success. I look forward to reporting on our progress in due course as we enter an exciting phase of highly prospective drilling activities."

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Further Information:

Zenith Energy Ltd 

Andrea Cattaneo 

Chief Executive Officer 

E-mail: [email protected]

Tel: +1 (587) 315 9031

Allenby Capital Limited - Financial Adviser

Nick Harriss

Nick Athanas

Tel: + 44 (0) 203 328 5656

Daniel Stewart & Company Plc - Joint Broker

Robert Emmet - Corporate Broking

Tel: + 44 (0) 207 776 6550

Optiva Securities - Joint Broker

Christian Dennis

Tel: + 44 (0) 203 137 1903 

Vigo Communications - PR Adviser

Patrick d'Ancona

Chris McMahon 

Tel: +44 (0) 20 7930 0230 

Notes to Editors: 

Zenith Energy Ltd. is an international oil and gas production company, dual listed on the TSX Venture Exchange and London Stock Exchange. The Company was assigned a medium to long-term issuer credit rating of "B+" with Positive Outlook on October 8, 2018 by Arc Ratings S.A.

The Company operates the largest onshore oilfield in Azerbaijan following the signing of a 25-year REDPSA, (Rehabilitation, Exploration, Development and Production Sharing Agreement), with SOCAR, State Oil Company of the Azerbaijan Republic, in 2016. 

The Company's primary focus is the development of its Azerbaijan operations by leveraging its technical expertise and financial resources to maximise low-cost oil production via a systematic field rehabilitation programme intended to achieve significantly increased revenue. Zenith also operates, or has working interests in, a number of natural gas production concessions in Italy. The Company's Italian operations produce natural gas, condensate and electricity.

Zenith's development strategy is to identify and rapidly seize value-accretive hydrocarbon production opportunities in the onshore oil & gas sector. The Company's Board of Directors and senior management team have the experience and technical expertise to develop the Company successfully.

Forward-looking statements

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", “might”, "project", "should", "believe", "plans", "intends", “achieve” and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this press release contains forward-looking statements and information concerning the current and future oil production potential of the Company's assets. The forward-looking statements and information are based on certain key expectations and assumptions made by Zenith, including the ability to execute its strategy and realise its growth opportunities including its ability to finance and execute its plans. Although Zenith believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company can give no assurance that they will prove to be correct. All timing given in this announcement, unless stated otherwise is indicative and while the Company endeavours to provide accurate timing to the market, it cautions that due to the nature of its operations and reliance on third parties this is subject to change often at little or no notice. By its nature, such forward-looking information is subject to certain risks and uncertainties (both general and specific) that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. These risks and uncertainties, include, but are not limited to, Zenith being unable to finance or realise growth opportunities. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. Zenith undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law. The forward-looking information contained herein is expressly qualified by this cautionary statement.

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