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Italy

In 2013 Zenith announced the acquisition of working interests across 13 natural gas production and exploration assets across Italy after receiving approval from the Italian Ministry for Economic Development.

6 operated onshore gas production concessions

Zenith has a broad portfolio of interests in onshore natural gas production and exploration assets across Italy. These include:

3 non-operated onshore gas production concessions

Exploration Permits

The Company also holds an operated production permit for the Montalbano concession with a 57.15% working interest, and is in the process of acquiring a 100% working interest.

Permit Applications

The Company has also submitted 3 exploration permit applications that await Italian governmental approval for the following concessions:

  • Serra dei Gatti
    (100% working interest)
  • Villa Carbone
    (50% working interest)
  • Colle dei Nidi
    (25% working interest)

Production

Present level of monthly average net production is 8,83 MCF of natural gas and 1,350 BOE of natural gas condensate.

At Torrente Cigno, low-grade natural gas production is used to generate a highly profitable electricity production of approximately 880 MWh per month. Italy offers a series of very attractive opportunities for junior exploration and production companies, specifically in relation to natural gas.

We consider the key advantages of operating in Italy to be the following:

Zenith operates in established hydrocarbon producing areas, where there is a strong understanding of the geology and development potential of its assets, as well as a ready availability of logistical infrastructure and oilfield service companies.

A low-risk jurisdiction with a strong EU regulatory framework and favourable petroleum industry tax and royalty regime. Zenith presently pays no royalties in Italy as current production levels fall below the relevant threshold.

An established hydrocarbon producing country, with a long and successful history of natural gas production and exploration across its territory spearheaded by ENI.

Italy’s economy is heavily dependent on oil and gas, with a primary energy mix weighting of 76 % according to a study conducted by the BP Statistical Review in 2015. By comparison, the same study indicated that the UK and German economies had a weighting of 70% and 55% respectively. The fact that Italian energy needs are largely met by imports further reinforces the importance and commercial value of domestic production.

Development Potential

Zenith’s Italian energy production interests hold significant potential for development and increased energy production. The development programme is primarily concentrated on the Torrente Cigno concession, where the Company is evaluating the possibility of sidetracking well Maseria Vincelli 2 to restore production at this well. The Company’s third-party CPR has concluded that a successful sidetrack could produce 1000 Mcfe/d (167 BOEPD). The estimated net cost of the Masseria Vincelli 2 side-track is US$ 1.5 million.

The Company has entered the final permitting stage for the activation of the Torrente Vulgano concession where Zenith will hold a 100% production license. The initial invitation for bidding by the Italian Government took place in August 2009, and the Company’s application was accepted in August 2011.

Torrente Vulgano is located in the Puglia Region and was previously operated by Italian major ENI. This field has pre-existing connections to the national gas network and does not require the installation of new pipelines. The planned reactivation of this concession is a highly significant development opportunity for Zenith’s Italian operations. Two wells within this concession had a historical production capacity of 247 MCF/d and significant untapped reserves remain in place.

The Company also has plans for the reactivation of the San Teodoro and Masseria Petrilli concessions, both of which are currently non-producing, by sidetracking existing wells to unlock residual reserves.

Zenith is confident that many of its concessions licences will be extended due to the Company’s systematic energy production and development programme for each concession, as well as the significant quantities of recoverable untapped reserves.

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    The Common Shares have not been and will not be registered under the U.S. Securities Act of 1933 (the “Securities Act”), or the securities laws of any state or other jurisdiction of the United States or qualified for sale under applicable securities laws of South Africa, Canada, Australia and Japan. Subject to certain exceptions, the Common Shares may not be offered, sold, resold, reoffered, pledged, transferred, distributed or delivered, directly or indirectly, within, into or in the United States or to or for the account or benefit of U.S. persons (as defined in Rule 902 under the Securities Act) or to persons in the United States, Australia, Canada (other than pursuant to exemptions from the prospectus requirement under Canadian securities legislation) or Japan or any other jurisdiction where such offer or sale would violate the relevant securities laws of such jurisdiction.

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    Access to electronic versions of these materials is being made available on this webpage by Zenith Energy Ltd in good faith and for information purposes only. Any person seeking access to this webpage represents and warrants to Zenith Energy Ltd that they are doing so for information purposes only. Making press announcements and other documents available in electronic format does not constitute an offer to sell or the solicitation of an offer to buy Common Shares in Zenith Energy Ltd. Further, it does not constitute a recommendation by Zenith Energy Ltd or any other party to sell or buy Common Shares in Zenith Energy Ltd.

    Electronic versions of these materials are not directed at or accessible by persons located in the United States, South Africa, Australia and Japan or any other restricted jurisdiction.

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  • Disclaimer

    PLEASE READ THIS NOTICE CAREFULLY, AS IT APPLIES TO ALL PERSONS WHO VIEW THIS WEBPAGE. PLEASE NOTE THAT THE DISCLAIMER SET OUT BELOW MAY BE ALTERED OR UPDATED. YOU SHOULD READ IT IN FULL EACH TIME YOU VISIT THE SITE.

    ELECTRONIC VERSIONS OF THE MATERIALS YOU ARE SEEKING TO ACCESS ARE BEING MADE AVAILABLE ON THIS WEBPAGE BY THE COMPANY IN GOOD FAITH AND FOR INFORMATION PURPOSES ONLY.

    Viewing the materials you seek to access may not be lawful in certain jurisdictions. In other jurisdictions, only certain categories of person may be allowed to view such materials. Any person who wishes to view these materials must first satisfy themselves that they are not subject to any local requirements that prohibit or restrict them from doing so.

    In particular, unless otherwise determined by the Company and permitted by applicable law and regulation, it is not intended, subject to certain exceptions, that any offering of the common shares in the capital of the Company mentioned in the materials (the “Common Shares”) by the Company would be made, directly or indirectly, in or into, the United States, South Africa, Canada, Australia and Japan.

    The information contained in this website, including any materials you may hereafter access, does not constitute, and may not be used for the purposes of, an offer to sell or an invitation or the solicitation of an offer or invitation to subscribe for or buy, any Common Shares by any person in any jurisdiction (i) in which such offer or invitation is not authorised; (ii) in which the person making such offer or invitation is not qualified to do so; or (iii) in which, or to any person to whom, it is unlawful to make such offer, solicitation or invitation.

    The distribution of the materials and the offering of the Common Shares in certain jurisdictions may be restricted. Accordingly, persons who obtain access to the materials are required to inform themselves about, and to observe any restrictions as to the offer or sale of Common Shares and the distribution of, the materials under the laws and regulations of any territory, including obtaining any requisite governmental or other consent and observing any other formality prescribed in such territory. The Company does not accept any responsibility for any violation of any of these restrictions by any other person.

    The Common Shares have not been and will not be registered under the U.S. Securities Act of 1933 (the “Securities Act”), or the securities laws of any state or other jurisdiction of the United States or qualified for sale under applicable securities laws of South Africa, Canada, Australia and Japan. Subject to certain exceptions, the Common Shares may not be offered, sold, resold, reoffered, pledged, transferred, distributed or delivered, directly or indirectly, within, into or in the United States or to or for the account or benefit of U.S. persons (as defined in Rule 902 under the Securities Act) or to persons in the United States, Australia, Canada (other than pursuant to exemptions from the prospectus requirement under Canadian securities legislation) or Japan or any other jurisdiction where such offer or sale would violate the relevant securities laws of such jurisdiction.

    If you are not permitted to view materials on this webpage or are in any doubt as to whether you are permitted to view these materials, please exit this webpage.
    Access to electronic versions of these materials is being made available on this webpage by Zenith Energy Ltd in good faith and for information purposes only. Any person seeking access to this webpage represents and warrants to Zenith Energy Ltd that they are doing so for information purposes only. Making press announcements and other documents available in electronic format does not constitute an offer to sell or the solicitation of an offer to buy Common Shares in Zenith Energy Ltd. Further, it does not constitute a recommendation by Zenith Energy Ltd or any other party to sell or buy Common Shares in Zenith Energy Ltd.

    Electronic versions of these materials are not directed at or accessible by persons located in the United States, South Africa, Australia and Japan or any other restricted jurisdiction.

    I have read and understood the disclaimer set out above. I understand that it may affect my rights. I agree to be bound by its terms. By clicking on the “Accept” button, I confirm that I am permitted to proceed to electronic versions of these materials.