Zenith Energy has agreed an extension to the option agreement with Noble Hill-Network Limited (NHNL), announced on 29 November 2021, for the purchase of a 42% interest in the share capital of NHNL
NHNL is a private Nigerian oil and gas company and the registered sole, 100% holder of a Risk Service Contract (RSC) for the development of the North-West Corner of OML 141 in Nigeria, defined as the Risk Service Contract Area (RSCA).
The RSCA covers 105 sq. kms of the Coastal Swamp Region of the Niger Delta and contains the potentially highly productive Barracuda and Elepa South oilfields, with an estimated 232.7 mmbbl of discovered oil (Degeconek 2019 CPR), as well as one prospective field with substantial gas and condensate prospective reserves.
The company has been informed by NHNL that it has recently been served with a vexatious injunction from a third-party in respect of an alleged claim to holding a majority interest in NHNL.
Following the extension, the option will expire on 1 March 2022.
Andrea Cattaneo, CEO of Zenith Energy, commented, “The company shall continue to perform its due diligence exercise to fully evaluate the comprehensive legal, technical, and commercial elements of the potential transaction. I look forward to updating our shareholders on our progress in due course.”