Zenith Energy announces binding offer to acquire oil production and development assets in Tunisia
Zenith Energy has made a binding offer to wholly acquire a company holding a 100% interest in two hydrocarbons production and development concessions in Tunisia, which has now been accepted.
The Offer is represented by a mix of cash payments and assumption of debt by Zenith for a total consideration of approx. USD$200,000.
The Potential Acquisitions currently produce approx. 80-100 barrels of condensate per day with 5.5-6 MMSCF of natural gas, which is re-injected into the formation, from the first Potential Acquisition concession, and approx. 25 barrels of oil per day from the second Potential Acquisition concession. One well within the first Potential Acquisition concession suffered tubing string damage and has been temporarily shut-in, having had a stabilised production range of between approx. 500-600 barrels of oil per day prior to production being suspended. The low oil price environment during 2020 and the material investment required to restore production from this well have prevented the necessary repair work from being implemented.
A recent study carried out by seller in respect of the second Potential Acquisition, comprising production, cost-effectiveness and feasibility evaluations, concluded that the current production of approx. 25 barrels of oil per day could be increased to up to approx. 200 barrels of oil per day via drilling activities. The seller did not implement the recommendations of the study due to the low oil price environment during 2020 and the emergence of financing difficulties.
Click on the link below for full report