(TheNewswire)
Calgary, AB / TheNewswire / October 22, 2018 - 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 additional, ongoing geological and reservoir investigations have enabled the Company to identify a new structure in the Middle
Eocene and Upper Cretaceous formations of the Jafarli Field.
Key Conclusions:
- The Jafarli field is a dip-closed anticline, located in the
south-east tail of the Muradkhanli anticline in the Yevlakh - Aghjabady depression.
- Historically, the primary productive formation in the field has been the
Middle Eocene, consisting of volcanogenic clastic layers and fractured marly limestones draping and lapping the
Mesozoic underlying structure which is identifiable in the 3D seismic surveys performed in 2008 and
2011.
- The identified structure measures approximately 3 square kilometres with a
significant degree of closure indicated by a thickness of approximately 100 metres.
- The study recommends that well C-37's total depth, 3,987 metres, be
deepened by approximately 200-250 metres with the following two objectives:
1.) Penetrate sandstone layers found in the adjacent well C-22 where historical well data
indicates that initial production was approximately 700 barrels per day from the Middle Eocene formation upon drilling in
1986.
2.) Penetrate the Mesozoic (Upper Cretaceous) formation, which has not been previously tested
in this structure to verify its fluid content. The new Cretaceous play could potentially unlock valuable new prospective
exploration activity to be performed in the Muradkhanli and Zardab fields.
- In order to better evaluate the potential benefits of successful drilling
activities the Company has calculated the reserves potential of this structure by hypothesizing certain petrophysical parameters
expressed in similar Cretaceous reservoirs located in the north-western part of the Kura basin. The aforementioned reserves
calculation has confirmed the Company's intention to proceed with the performance of drilling
operations.
Appointment of Senior Reservoir Engineer
The Company is pleased to announce that it has appointed Narmina Garayeva as Senior Reservoir
Engineer of Zenith Aran, its fully-owned Azerbaijan subsidiary.
Narmina is a senior reservoir engineer with a PhD degree in Reservoir Engineering and 30 years'
experience acquired with oil companies including Addax Petroleum and BP. She has previously worked in geographies including
Azerbaijan, West Africa, North Sea, Middle East, Russia, and Kazakhstan.
Andrea Cattaneo, Chief Executive Officer, commented:
"I am delighted to welcome Narmina to the team, and I am confident that her comprehensive skillset
and vast experience will be of great assistance to us during the crucial period ahead.
As can be seen from the application of our geological re-evaluation of our assets in Azerbaijan
which has resulted in the identification of a new geological structure in the Jafarli field, we are maximising our level of
preparation and geological understanding. This is extremely important in order to achieve the highly material upside we believe our
Azerbaijan asset can deliver through successful drilling activities at a time of very favourable oil prices."
Neither 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.
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", "project", "should", "believe", "plans", "intends" 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.
For further information please contact:
Zenith Energy Ltd.
Andrea Cattaneo
Chief Executive Officer
E-mail: info@zenithenergy.ca
Tel: +1 (587) 315 9031
Vigo Communications - PR Adviser
Patrick d'Ancona
Chris McMahon
Kate Rogucheva
Tel: +44 (0) 20 7830 9700
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
Allenby Capital Limited - (Financial
Adviser)
Nick Harriss
Nick Athanas
Tel: + 44 (0) 203 328 5656
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 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.
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