(via TheNewswire)
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 ("MAR"). Upon publication of this announcement via a regulatory information service ("RIS"), the inside information contained in this document is now considered to be in the public domain.
Acquisition of Tilapia for
The Company has entered into a new conditional Deed of Variation (the "Deed of Variation") which now includes the acquisition of a100per cent . interest inAAOG Congo and related intercompany loans (the "Acquisition") for a revised total consideration of
The aforementioned variation to the terms of the Acquisition means that completion ("Completion") will occur after the passing of a resolution (the "Resolution") to be put to shareholders of AAOG at a general meeting (the "
Under the terms of the Deed of Variation for the Acquisition, payment of the Revised Consideration will solely depend upon the passing of the Resolution at the
Payment of the Revised Consideration is expected to be made on the next business day following the date of the Resolution being passed.
In addition, AAOG will novate 100% of the intercompany loans with AAOG Congo to Zenith as of the date of Completion, equivalent to approximatelyGBP12.5 million .
As previously announced, AAOG Congo is owed approximately
Following Completion, the Company will assume responsibility of all ongoing costs and liabilities in relation to AAOG Congo. Zenith expects to implement a series of cost-cutting measures at AAOG Congo to improve profitability, especially in reaction to the significant recent decline in oil prices.
"Acquiring a 56 percent interest in the potentially transformational Tilapia oilfield, as well as 100% of the approximately
We are fully confident that the necessary regulatory approval process in the
I believe we have obtained significant value for Zenith shareholders by concluding the transaction under the revised terms and I look forward to delivering further good news in due course."
Neither the
Further Information:
---------------------------------------------------------------- |Zenith Energy Ltd. | | |--------------------------------------------------------------| |Andrea Cattaneo, |Tel: +1 (587) 315 9031 | |Chief Executive | | |Officer | | |--------------------------------------------------------------| | |E-mail: info@zenithenergy.ca| |--------------------------------------------------------------| |Novum Securities Limited - Broker|Tel: + 44 (0) 207 399 9400 | |--------------------------------------------------------------| |Colin Rowbury | | ----------------------------------------------------------------
Notes to Editors :
Zenith Energy Ltd. is an international oil and gas production company, listed on the
The Company was assigned a medium to long-term issuer credit rating of "B+ with Positive Outlook" on
Copyright (c) 2020 TheNewswire - All rights reserved.
Copyright (c) 2020 TheNewswire - All rights reserved., source