ZENITH ENERGY TRANSFORMATIONAL OIL AND GAS OPPORTUNITIES IN AFRICA - APR 2021 - Amazon AWS
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APR 2021 ZENITH ENERGY TRANSFORMATIONAL OIL AND GAS OPPORTUNITIES IN AFRICA
A DUAL LISTED INTERNATIONAL OIL AND PRODUCTION
POTENTIAL OF APPROX
GAS PRODUCTION COMPANY FOCUSED ON 2,000 - 3,000
2021
ZENITH ENERGY
TRANSFORMATIONAL OPPORTUNITIES IN AFRICA BOPD DURING 2021
APR 2021
Development Recent Highlights METRICS
strategy defined by: Zenith is pursuing an acquisition campaign
of highly prospective oil production and KEY SHAREHOLDERS:
• Acquiring and developing
development assets in Africa Board of Directors,
assets with untapped Mirabaud & Cie (Europe) SA,
reserves and existing 1 Completion of working interest acquisition in the highly prospective
Premier Miton Investors
Ezzaouia Concession, onshore Tunisia. Ezzaouia currently produces
production
at a rate of approximately 465 barrels of oil per day (approximately
210 barrels of oil per day net to Zenith). Planned field production
• Maximising revenue by optimisation and workover activities are expected to increase STOCK TICKER
(LSE: ZEN /
implementing low-cost oil Ezzaouia gross production to 1,000 barrels of oil per day.
production models 2 Conditional acquisition from KUFPEC, a subsidiary of the State of
OSE: ZENA)
Kuwait’s national oil company, of a 22.5% interest in Sidi El Kilani, an
• Ownership of key onshore oil production asset in Tunisia. Conditional acquisition from
China National Petroleum Corporation (CNPC) of a 22.5% interest in
operational equipment with
Sidi El Kilani, an onshore oil production asset in Tunisia. Completion of
the objective of reducing both acquisitions is subject to approval being granted by the Comité
costs, third-party delays, Consultatif des Hydrocarbures (“CCH”) of the Republic of Tunisia.
MARKET CAP CIRCA (APPROX)
£12M
and decreasing reliance on Upon completion, the Company’s working interest in SLK will equate
to a daily production of approximately 250-300 barrels of oil per day.
third party oilfield service
companies 3 Official confirmation regarding the successful completion of the
Enquiry of Public Utility (Enquête d’Utilité Publique) following an
in-depth technical and financial review, performed by the Ministry
• Highly incentivised Board of Hydrocarbons of the Republic of the Congo during the month of
of Directors and Senior January 2021. As announced on December 23, 2020, the Company SHARES IN ISSUE (APPROX)
Management, holding
1,163M
will now proceed with the potential finalisation and ratification of the
significant interests in Production Sharing Contract (“PSC”) for Tilapia II.
the share capital of Zenith. 4 Assessing a number of oil and gas production and development
SLIDE opportunities in Africa to enrich the Company’s portfolio.
01TRANSFORMATIONAL REVENUE GENERATING
PRODUCTION POTENTIAL
DURING 2021 OF APPROX
OIL PRODUCTION OPPORTUNITIES IN AFRICA 2,000-3,000 BOPD
2021
ZENITH ENERGY
APR 2021
TUNIS
SIDI EL-KILANI
REPUBLIC OF
THE CONGO
TUNISIA EZZAOUIA
LOUBOMO
SIDI EL-KILANI EZZAOUIA TILAPIA
45% CONDITIONAL 45% OF APPROX. BRAZZAVILLE
INTEREST OF 460 BOPD
POINTE-NOIRE
REPUBLIC OF
APPROX. 550 BOPD PRODUCTION THE CONGO
PRODUCTION PRODUCTION
POTENTIAL
FOLLOWING DRILLING
SLIDE UP TO 5,000 BOPD
02
TOTAL ZENITH PRODUCTION IN TUNISIA APPROX. 450 BOPDEZZAOUIA ACQUISITION HIGHLIGHTS
APPROX. BARRELS OF OIL HELD IN STORAGE
25,000
TUNISIA WITH A COMMERCIAL VALUE OF APPROX.
2021
ZENITH ENERGY
$1,250,000
APR 2021
Zenith has acquired an interest of 45% in the EZZAOUIA Concession by way of the 100%
purchase of Ecumed Petroleum Zarzis Ltd (“EPZ”) announced during March 2021.
Acquisition Highlights:
Discovered by Marathon Petroleum On April 19, 2019, the Tunisian MARETAP, the joint operating
Corporation in 1986, with production State represented by the Ministry company, operates an oil storage
activities starting in 1990 with a peak of Industry and Small & Medium terminal at the port of Zarzis with a
production being achieved of 35,000 Enterprises informed ETAP and storage capacity of approximately
barrels of oil per day in 1991. EPZ that the Comité Consultatif 200,000 barrels of oil.
des Hydrocarbures (“CCH”) had
provided a favourable opinion to the
Operated by MARETAP, a joint application submitted by ETAP and
operating company owned in EPZ for a new 20-year concession to Tunis
partnership with the national oil be called “Ezzaouia”.
company of Tunisia, ETAP, on a 50:50
basis, which holds a 55 percent
interest in Ezzaouia. Development obligations during
the course of the new 20-year
concession are expected to include Sidi El-Kilani
the drilling of a side-track, the drilling TUNISIA
Planned field production
of a replacement well and that of a Ezzaouia
optimisation and workover activities
development well.
are expected to increase Ezzaouia
gross production to 1,000 bopd
(potentially resulting in a production EZZAOUIA
45% OF APPROX.
SLIDE of 450 bopd net to Zenith). 460 BOPD
03 PRODUCTIONSLK ACQUISITION HIGHLIGHTS TOTAL CURRENT
PRODUCTION
NATIONAL
PRODUCTION
REVENUE APPROX APPROX
TUNISIA US$15M 35,000
2021
ZENITH ENERGY BOPD
APR 2021
The Company has acquired a cumulative conditional interest of 45%
in the North Kairouan permit and the Sidi El Kilani Concession (“SLK”)
This results from the following transactions:
Conditional acquisition from KUFPEC, Conditional acquisition from CNPC Completion of both acquisitions is subject
a subsidiary of the State of Kuwait’s International (Tunisia), a subsidiary of to a favourable opinion being granted by
national oil company, of its 22.5% China National Petroleum Corporation the Comité Consultatif des Hydrocarbures
working interest for a consideration (CNPC), of its 22.5% working interest (“CCH”) of the Republic of Tunisia and the
of US$500,000 in April 2020. On June for a consideration of US$300,000 in approval of the Tunisian State represented
11, 2020, the Company announced September 2020. by the Ministry of Industry and Energy.
that it had already paid US$250,000
to KUFPEC and that it expected the Tunis
balance consideration payable would
be satisfied by the oil production
revenue generated since the date of
the acquisition.
Sidi El-Kilani
TUNISIA
Ezzaouia
Currently producing at an approximate
rate of 550 barrels of oil per day using
natural flow regime (without artificial lift
SLIDE
technology).
04ACQUISITION HIGHLIGHTS TILAPIA
PRODUCTION
PRODUCTION
POTENTIAL FOLLOWING
NATIONAL
PRODUCTION
APPROX DRILLING APPROX
REPUBLIC OF THE CONGO, 30 UP TO 5,000 350,000
2021
ZENITH ENERGY TILAPIA BOPD BOPD BOPD
APR 2021
Geographic position Upside potential Highly strategic acquisition
• Located in the Lower Republic • Successful recent drilling • Zenith acquired 100% of AAOG
of the Congo Basin, West African undertaken during 2018 and Congo, the former operator of the
Atlantic Margin, which extends from 2019 identified multiple potential Tilapia oilfield with a 56% interest.
Gabon down to Angola, a prolific productive reservoirs across a • Remaining 44 percent was
hydrocarbon region number of formations including held by the national oil company,
• Individual wells in this region have the regionally proven Mengo and Société Nationale des Pétroles
recorded production rates of up to Djeno reservoirs du Congo (“SNPC”).
5,000 barrels of oil per day. • Recent expert wireline log
• Acreage is situated 1.8km offshore analysis* (has indicated that
(drilled from onshore negating reservoir quality is “between
the necessity of offshore drilling good and excellent”.
equipment)
*commissioned by AAOG Congo after drilling
• First production in 2008.
activities in the Djeno REPUBLIC
• Close to nearby infrastructure OF THE
(Oil storage /processing facilities - CONGO
45-minute drive from Point Noire
and 17km from nearest refinery.)
SLIDE TILAPIA LOUBOMO
05 BRAZZAVILLE
POINTE-NOIREACQUISITION HIGHLIGHTS TILAPIA
PRODUCTION
PRODUCTION
POTENTIAL FOLLOWING
NATIONAL
PRODUCTION
APPROX DRILLING APPROX
REPUBLIC OF THE CONGO, 30 UP TO 5,000 350,000
2021
ZENITH ENERGY TILAPIA BOPD BOPD BOPD
APR 2021
AAOG Congo’s licence to operate the Tilapia SNPC owes AAOG Congo approximately Zenith has commissioned a new Competent
oilfield (“Tilapia I”) expired on July 18, 2020, as US$5.3 million. Zenith has met with SNPC and Person’s Report in compliance with Canadian
publicly announced by Zenith Energy and expects to obtain the full repayment of the securities laws, specifically the COGE Handbook
previously announced by AAOG plc. aforementioned amount. and National Instrument 51-101 - Standards of
Disclosure for Oil and Gas Activities.
The seller of AAOG Congo has also novated
100% of the intercompany loans with AAOG
Congo to Zenith as of the date of Completion,
equivalent to approximately £12.5 million.
Plans to commence drilling activities in Zenith has submitted an offer to the Ministry of Plans to commence drilling activities in well
well TLP-103C at the earliest opportunity in Hydrocarbons for the award of a new 25-year TLP-103C at the earliest opportunity in the event
the event that the Company is successful licence in relation to the Tilapia oilfield, to be that the Company is successful in obtaining a
in obtaining a new 25-year licence for the named “Tilapia II” and established a new local new 25-year licence for the Tilapia oilfield.
Tilapia oilfield. subsidiary, Zenith Energy Congo SA, at the
request of the Ministry of Hydrocarbons. REPUBLIC
OF THE
CONGO
SLIDE TILAPIA LOUBOMO
06 BRAZZAVILLE
POINTE-NOIREPOTENTIALLY TRANSFORMATIONAL PRODUCTION
FROM THE MENGO AND DJENO FORMATIONS
2021 REPUBLIC OF THE CONGO,
TILAPIA
ZENITH ENERGY
APR 2021
TLP-103C TLP-103C-ST
SW TLP-103C TLP-103C-ST NE
Ocean 0M
Ocean
Land NE Land
TILAPIA LICENCE
TILAPIA LICENCE
As publicly announced, Zenith
intends to contract a suitable TLP-103C SIDETRACK
and fully inspected drilling LOEME
rig to sidetrack TLP- 103C and (Aptian) = DRILLING RIG
thereby achieve potentially 1000M
transformational production R2 = OIL POOL
from the Mengo and Djeno (Barremian)
formations once a new 25-year = TLP-103C:
ALREADY DRILLED
licence is obtained in respect of
= TLP-103C SIDETRACK:
the Tilapia oilfield. MENGO
TO BE DRILLED
2000M (Barremian)
An independent review ofthe
petrophysical analyses of drilling
activities in well TLP-103C
concluded that reservoir quality TLP-103C-ST
DJENO
is between good and excellent,
(Neocomian)
supporting the commercial 3000M
decision to seek potentially
TLP-103C-ST
transformational production
from the Djeno formation.
VANDJI
(Neocomian)
SLIDE 4000M
07 800000 801000 802000 803000 804000 805000 806000 807000 808000 809000 810000WORKING INTERESTS IN
ITALY - CASH GENERATING 368.96 KM2
ENERGY PRODUCTION OF ITALIAN NATURAL
GAS PRODUCTION
2021 A low-risk jurisdiction with a strong EU regulatory framework CONCESSIONS
ZENITH ENERGY
APR 2021
Italy has a long and successful history of natural
gas production and exploration across its territory
SOUTHERN GAS
CORRIDOR - TAP
• Balanced energy production portfolio providing
PRODUCTION
cashflow with stable low-cost natural gas production CONCESSIONS
• Moderate investment expected to achieve significant ITALIAN NATIONAL
Genoa PIPELINE
increase in natural gas production INFRASTRUCTURE
• Low-grade sour gas production is used at the Torrente
Cigno concession to profitably generate electricity
• Italy’s economy is heavily dependent on oil and gas ADRIATIC
SEA
On July 31, 2020, Zenith received approval for a legally
ROME
binding loan facility for an amount of approximately
EUR 300,000 from an Italian governmental entity. Under
the terms of the loan, all funds to be disbursed are to be
utilised for the purpose of the establishment of commercial
activities in Africa, specifically in the Republic of Congo and
the broader West Africa region.
The Company plans to file an application for a second
loan facility of this kind in due course for the purpose of
making infrastructural investments in its Italian natural gas,
MEDITERRANEAN
condensate and electricity production operations. SEA
NATURAL GAS
2P RESERVES
CONDENSATE
2P RESERVES 6 OPERATED
CONCESSIONS
2 EXPLORATION
PERMITS
NPV
DISCOUNTED
16.3 255 AT 10%
SLIDE
08 BCF MBBLS 3 NON-OPERATED
CONCESSIONS
2 EXPLORATION
PERMITS AWAITING
APPROVAL
US$15MOWNERSHIP OF DRILLING EQUIPMENT
Zenith strongly believes in the benefits of owning 1. Cost control
2021
ZENITH ENERGY
and operating the key equipment required to develop 2. Operational independence
APR 2021 its asset portfolio. For the following reasons: 3. Direct oversight on execution
1 1
WORKOVER RIG DRILLING RIG
( 375HP) (1 , 20 0 HP )
capable of drilling to
a depth of approx 5,000 metres
(depending on well design)
SLIDE
09EUR 25 MILLION
EMTN PROGRAMME To date, Zenith has issued the
2021
following, multi-currency Euro
ZENITH ENERGY Medium Term Notes at par
APR 2021
value: (*the “Notes”)
Zenith has launched a EUR The EMTNs are admitted to
25,000,000 multi-currency trading on the Third Market EURO 1,000,000 bearing an interest
Euro Medium Term Notes
(EMTN) Programme.
(MTF) of the Vienna Stock
Exchange and will be due on 1 of 10.125% per year the “EUR-Notes”
ISIN: XS2108546735
January 27, 2024.
GBP 1,000,000 bearing an interest
As announced on January 29, 2021, the Company has paid all
coupons, in full and on time, for the aforementioned instruments
2 of 10.5% per year the “GBP-Notes”
ISIN: XS2108546578
since their respective issuances providing a clear demonstrative
of Zenith’s effective cashflow management offering investors a
fixed semi-annual return on their investment. USD 1,000,000 bearing an interest
3 of 10.375% per year the “USD-Notes”
ISIN: XS2108546651
• *The Notes are governed by • *Zenith is carefully developing its
Austrian law and are not debt financing capabilities, with
convertible into Zenith equity. a focus on non-equity dilutive CHF 1,000,000 bearing an interest
funding, in order to facilitate the
attraction of more significant
interest from investors as it
4 of 10.00% per year the “CHF-Notes”
ISIN: XS2108546818
implements its ambitious African
SLIDE development strategy.
10SUMMARY INVESTMENT CASE PRODUCTION POTENTIAL
OF APPROX DURING 2021
Ideally positioned to complete a number of highly prospective 2,000 -
acquisition opportunities at advantageous terms across Africa
2021
ZENITH ENERGY
APR 2021 in the current low oil price environment
3,000 BOPD
Tunis
MANAGEMENT ALIGNED NEAR-TERM CUMULATIVE
WITH SHAREHOLDERS - THE EXISTING PRODUCTION
BOARD OF DIRECTORS AND OF APPROX. 500
TUNISIA
MANAGEMENT COLLECTIVELY BOPD FROM RECENT
HOLD APPROXIMATELY ACQUISITIONS
10 PERCENT OF ZENITH’S
SHARE CAPITAL .
1 4
Uniquely positioned in the current low oil price Stringent due diligence
environment to pursue an aggressive, countercyclical in place for all new assets
acquisition campaign in Africa targeting low-risk oil being acquired
production assets generating significant production
revenue even at US$30 oil.
REPUBLIC
OF THE
CONGO
2 3 5
Highly experienced Ready availability of drilling Highly knowledgeable and
operational team with equipment and technical well connected Advisory Brazzaville
proven track-record of personal across all acquisition Committee recently created
success opportunities. (Company owns to support its business
key drilling equipment including development activities in
SLIDE
a drilling rig (1,200hp) and a West Africa
11 workover rig (375hp))TEAM
Executive Directors & Senior Management
2021
ZENITH ENERGY
APR 2021
Luca Benedetto Luca Benedetto trained in Italy as a registered
Chief Financial Officer accountant with further education in IFRS accounting
& Executive Director and consolidation at IPSOA Milan. He has more than
(UK based) twenty-five years of accounting, auditing and financial
administration experience.
Andrea Cattaneo
Chief Executive
Officer & President Dr. José Ramón López Portillo Former Mexican Ambassador to Food and Agriculture
(UK & Africa based) Chairman and Non-executive Organisation (United Nations) and Minister in Mexican
Director, (UK based) Federal Government. Leading researcher on the energy
security of Mexico. He is also the Former Chairman of the
Proven deal maker and FAO council. Holds a doctorate from the University of Oxford
government advisor with in political science and international relations.
specific expertise in FSU
and African countries. He
has more than 30 years of Dr. Dario Sodero Experienced energy industry executive with strong
experience in sovereign Non-executive Director, geological, technical and exploration expertise in North
loans, capital markets and (Canada based) America, North Africa and the Middle East. Holds a doctorate
oil trading between Western in Geological Sciences from the University of Turin, Italy.
and emerging countries.
Andrea is one of Zenith’s
founders and largest Sergey Borovskiy Sergey has over 25 years of experience in business
shareholders. Non-executive Director management in China and Hong Kong, he is fluent in Russian,
(China based) English and Mandarin and holds a degree in economics. He is
Chairman of various oil & gas consulting, engineering, trading,
chemical, seismic research and exploration services companies
based in China and Hong Kong.
SLIDE
12CONTACT Zenith Energy Ltd.
Andrea Cattaneo
Chief Executive Officer
E-mail: info@zenithenergy.ca
Tel: +1 (587) 315 9031
Allenby Capital Limited -
Financial Adviser & Broker
Nick Harriss, Nick Athanas
Tel: + 44 (0) 203 328 5656
SLIDE
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