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Zenith Energy shares up on plans to move into US market

26th May 2023 09:11

(Alliance News) - Zenith Energy Ltd shares were up on Friday, after it said it plans to buy in the US.

Zenith is a Calgary, Canada-based energy company with production, exploration and development assets in Africa and Europe. Its shares were up 5.2% to 0.45 pence each in London on Friday morning.

The company said its management is currently reviewing a selection of oil production and development assets located in Texas, Oklahoma, and California in the US.

Zenith noted that the potential acquisitions are all located in prolific oil and gas basins with proven petroleum systems.

It added that if the acquisitions are completed, it is expected that a production rate in the range of approximately 300 to 500 barrels of oil per day will be achieved.

"Drilling activities can be performed at relatively low-cost and without significant delay in view of the ready availability of equipment. The average total depth of production wells in the project areas of the potential acquisitions ranges between 500 to 2,000 metres," the company said.

Zenith noted that no terms have been finalised yet, but it will make further announcements if any of the acquisitions are completed.

Chief Executive Officer Andrea Cattaneo said: "It is key to underline that this does not represent a change in strategy or a departure from our business development objectives in Africa, the Middle East and Italy.

"However, in view of certain attractive opportunities to increase our daily production of oil in a stable jurisdiction at a time of favourable energy pricing, we have not hesitated in exploring these avenues whilst we await potential positive developments in respect of our publicly announced activities in other regions of focus."

By Sophie Rose, Alliance News reporter

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