Zenith Energy, the listed international oil & gas production company focused on pursuing African development opportunities, has announced that, its market announcement dated April 21, 2021, Compagnie Du Desert (‘CDD’), its recently incorporated fully owned subsidiary, has entered into a share purchase agreement (‘SPA) with Candax Energy for the acquisition of a 100 percent interest in Candax’s fully owned subsidiary in Barbados, Ecumed Petroleum Tunisia Ltd (‘EPT’), which holds a 100% interest in the El Bibane and Robbana concessions in Tunisia.

Terms 

Pursuant to the terms of the SPA, CDD has agreed to acquire 100% of the issued share capital of EPT for a nominal consideration of US$100 payable at completion, as well an additional consideration of approx. USD$200,000 in the form of assumption of debt payable by the close of May 2021.

El Bibane Highlights

• The El Bibane concession is located 16 kms offshore from the port of Zarzis in the Gulf of Gabes, covering an area of approx. 228 sq km and in approx. 7-8 meters water depth. The field was discovered by Marathon Oil Corporation in 1982. However, it was not developed until 1998. Upon initial development, a peak production of 4,500 bopd was achieved. The reservoir is located in the cretaceous Zebbag fractured dolomite formation at approximately 2,150 metres below surface.
• Zenith has acquired a 100% working interest in El Bibane.
• A total of three wells remain active within El Bibane: EBB-5, EBB-4 and EBB-3RE2.  A total of 6 wells plus 4 sidetracks have been drilled.
• EBB-5 currently produces approx. 80-100 barrels of condensate per day (API 49/50) with 5.5-6 MMSCF of natural gas from well EBB-5, which is re-injected into the formation via well EBB-4.
• It is expected that, by utilising new technologies, well EBB-4 may achieve commercial production of natural gas in addition to its current use as an injector well.

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Source: Energypedia