Thursday, September 28th 2023

Zenith Ink Deal

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Zenith Get’s Deal Over The Line

Zenith Energy yesterday announced that they had finally completed their acquisition of Anglo African Oil & Gas subsidiary which includes the Tilapia assets in Congo. The deal has been concluded with an amendment to the terms which allow AAOG shareholders a royalty payment up to £2.5m once the company produces 4000bopd. The option shows a negligible adjustment to the terms which demonstrate Zenith Energy acted with fairness, given the opportunistic nature of the deal.

The company is now preparing for operations in West Africa appointing Mr. André-Brice Boumbendje to its Advisory Committee to help Zenith build a fully compliant management team complementing its operational outlook. Mr. Boumbendje started his career at Schlumberger, later worked at Marathon Petroleum Corporation, and then became Senior Manager for Planning & Budget at Maurel & Prom, a leading French independent recently purchased by the national oil company of Indonesia, Pertamina.

In addition, Zenith has informed the market of their intention to hire Mr. Aleba, a citizen of the Republic of the Congo, who has worked at Congolaise de Raffinagethe refinery subsidiary of the national oil company, in the second week of February. During the transition of the acquisition and garnering the support of shareholders at the recent meeting, Zenith has proposed a transaction that inevitably adds significant access to capital (Congolese-subsidiary is owed $5.3m) and a pathway to recovering it.

The latest hires are suitable in-country personnel procured to help develop the Tilapia field and the 7.6m barrel P90 resource as stated in their latest release,” Our primary operational goal shall be to source a fully inspected and functional rig to begin drilling operations at the earliest opportunity in TLP-103C to test the productivity of the Mengo and Djeno horizons. On Monday shares in the Zenith Energy closed  6.2%+ at 2.55p.

You can learn more about the acquisition, watching this short video

The author was not remunerated but holds shares in the company