As per the terms of the acquisition, Zenith Energy Africa Limited (ZEAL), the fully-owned subsidiary of Zenith Energy Ltd, has agreed to acquire 100% of the issued share capital of Ecumed Petroleum Zarzis Ltd for the aggregate amount of US$150,000 payable at completion. This is the main highlight of this acquisition.
Located in onshore Tunisia on the Zarzis peninsula, Ezzaouia is first discovered by Marathon Petroleum Corporation in 1986. It produces almost 40 API gravity oil from the Zebbag formations and it currently produces at a rate of approximately 465 bopd. It is operated by MARETAP, which is a joint operating company. MARETAP operates an oil storage terminal, connected to Ezzaouia by way of two pipelines with a storage capacity of approximately 200,000 barrels of oil, from which all oil production from Ezzaouia is exported to the international markets. Approximately, 25,000 barrels of oil are currently held in storage with a commercial value of approximately US$1,250,000.
Andrea Cattaneo, CEO of Zenith Energy, stated that he is delighted with a transaction that implies the successful implementation of development strategy. He also stated that Ezzaouia has significant potential which is under development through a combination of workover and drilling activities. The board believes Zenith's future implantation in Tunisia, and Ezzaouia and Zenith will create additional acquisition opportunities in the near term future.
