July 31, 2020
ZENITH ENERGY LTD.

("Zenith" or the "Company")

Termination of SPA for acquisition of Coro Energy Italian assets

Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; OSE: ZENA-ME), the
listed international oil & gas production company, announces the termination, by
mutual agreement between the parties, of the sale and purchase agreement ("SPA")
entered into with Coro Energy plc ("Coro") relating to the proposed acquisition
by Zenith of Coro's entire Italian natural gas production and exploration
portfolio (the "Italian Acquisition"). 

Under the SPA, completion of the Italian Acquisition was conditional on, inter
alia, receipt of Italian regulatory approvals prior to the long stop date of
July 31, 2020, which will not be achieved. The SPA allowed for a possible
extension of the long stop date to October 31, 2020 upon written request by
Zenith. For reference, signing of the SPA was first announced to the market on
December 3, 2019. 

The Company has elected not to formulate such a request for the following
reasons: 

o	Negative profitability of the Italian Acquisition as a result of COVID-19.  

o	The concentration of the Company's focus, in terms of management time and
financial resources, on its publicly announced acquisition campaign in Africa. 


Andrea Cattaneo, Chief Executive Officer of Zenith, commented:

"In view of the many exciting developments that have taken place since the SPA
was first announced to the market in December 2019, specifically our
acquisitions in the Republic of the Congo and Tunisia, as well as the
unprecedented changes brought about by the COVID-19 pandemic, we have decided to
reconsider the proposed expansion of our natural gas production and exploration
portfolio in Italy.
There will therefore be no equity dilution associated with this transaction,
enabling a further maximisation of our financial resources and attention towards
possible additional value accretive acquisition opportunities in Africa." 





Further Information:

Zenith Energy Ltd. 	

Andrea Cattaneo, Chief Executive Officer	Tel: +1 (587) 315 9031
	E-mail: info@zenithenergy.ca
 
Notes to Editors: 

Zenith Energy Ltd. is an international oil and gas production company, listed on
the London Stock Exchange (LSE:ZEN) and the Merkur Market of the Oslo Stock
Exchange (ZENA:ME).
Zenith's development strategy is to identify and rapidly seize value-accretive
hydrocarbon production opportunities in the onshore oil & gas sector,
specifically in Africa. The Company's board of directors and senior management
team have the experience and technical expertise to develop the Company
successfully.

Click here for more information

© Oslo Bors ASA, source Oslo Stock Exchange