ZENITH ENERGY TRANSFORMATIONAL OIL AND GAS OPPORTUNITIES IN AFRICA - JAN 2021 - Amazon AWS
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JAN 2021 ZENITH ENERGY TRANSFORMATIONAL OIL AND GAS OPPORTUNITIES IN AFRICA
A DUAL LISTED INTERNATIONAL OIL AND PRODUCTION
POTENTIAL OF APPROX
GAS PRODUCTION COMPANY FOCUSSED ON 2,000 - 3,000
2021
ZENITH ENERGY
TRANSFORMATIONAL OPPORTUNITIES IN AFRICA BOPD DURING 2021
JAN 2021
Development Recent Highlights METRICS
strategy defined by: Zenith is engaged in an countercyclical acquisition
campaign of highly prospective oil production and KEY SHAREHOLDERS:
• Acquiring and developing
development assets in Africa Board of Directors,
assets with untapped Mirabaud & Cie (Europe) SA,
reserves and existing 1 Official confirmation from the Ministry of Hydrocarbons of the Premier Miton Investors
production Republic of the Congo that its local subsidiary, Zenith Energy
Congo SA (“Zenith Congo”), has been selected as the successful
bidder for the award of a new 25-year licence to operate the
• Maximising revenue by Tilapia oilfield (“Tilapia II”). This is subject to completion of an
STOCK TICKER
implementing low-cost oil
(LSE: ZEN /
enquiry of public utility (enquête d’utilité publique) (“IPU”) to be
performed by the Ministry of Hydrocarbons during the month
production models of January 2021, as well as the subsequent potential finalisation
OSE: ZENA)
and ratification of the Production Sharing Contract (“PSC”) for
• Ownership of key Tilapia II.
operational equipment with 2 Conditional acquisition from KUFPEC, a subsidiary of the State
the objective of reducing of Kuwait’s national oil company, of a 22.5% interest in Sidi El
costs, third-party delays, Kilani, an onshore oil production asset in Tunisia. Completion
of the acquisition is subject to approval being granted by the MARKET CAP CIRCA (APPROX)
£12M
and decreasing reliance on Comité Consultatif des Hydrocarbures (“CCH”) of the Republic
third party oilfield service of Tunisia.
companies
3 Conditional acquisition from China National Petroleum
Corporation (CNPC) of a 22.5% interest in Sidi El Kilani, an
• Highly incentivised Board onshore oil production asset in Tunisia. Completion of the
acquisition is subject to approval being granted by the Comité
of Directors and Senior SHARES IN ISSUE (APPROX)
1,070M
Consultatif des Hydrocarbures (“CCH”) of the Republic of Tunisia
Management, holding
significant interests in 4 Participation, as technical and financial partner to a Nigerian
registered energy company, in the ongoing 2020 Marginal Fields
the share capital of Zenith. Bid Round organised by the Nigerian Department of Petroleum
SLIDE Resources.
01TRANSFORMATIONAL REVENUE GENERATING
PRODUCTION POTENTIAL
DURING 2021 OF APPROX
OIL PRODUCTION OPPORTUNITIES IN AFRICA 2,000-3,000 BOPD
2021
ZENITH ENERGY
JAN 2021
TUNIS
SIDI EL-KILANI
REPUBLIC OF
THE CONGO
TUNISIA
LOUBOMO
TILAPIA
BRAZZAVILLE
TUNISIA
POINTE-NOIRE
REPUBLIC OF
CURRENTLY THE CONGO
PRODUCING PRODUCTION
AT A RATE OF POTENTIAL
APPROXIMATELY FOLLOWING DRILLING
SLIDE 550 BOPD UP TO 5,000 BOPD
02EUR 25 MILLION
EMTN PROGRAMME
2021
ZENITH ENERGY To date, Zenith has issued the
JAN 2021 • Zenith has launched a EUR following, multi-currency Euro
25,000,000 multi-currency Euro Medium Term Notes at part
Medium Term Notes (EMTN) value: (*the “Notes”)
Programme.
EURO 1,000,000 bearing an interest
• The EMTNs are admitted to trading
1 of 10.125% per year the “EUR-Notes”
ISIN: XS2108546735
on the Third Market (MTF) of the
Vienna Stock Exchange and will be
2
GBP 1,000,000 bearing an interest
due on January 27, 2024. of 10.5% per year the “GBP-Notes”
ISIN: XS2108546578
USD 1,000,000 bearing an interest
• *The Notes are governed by Austrian law
3 of 10.375% per year the “USD-Notes”
ISIN: XS2108546651
and are not convertible into Zenith equity.
• *The issue of the Notes is aligned with the
4
Company’s strategy of diversifying its financing CHF 1,000,000 bearing an interest
towards non-equity dilutive funding to support of 10.00% per year the “CHF-Notes”
its potentially transformational asset acquisition ISIN: XS2108546818
SLIDE activities in Africa.
03ACQUISITION HIGHLIGHTS TILAPIA
PRODUCTION
PRODUCTION
POTENTIAL FOLLOWING
NATIONAL
PRODUCTION
APPROX DRILLING APPROX
REPUBLIC OF THE CONGO, 30 UP TO 5,000 350,000
2021
ZENITH ENERGY TILAPIA BOPD BOPD BOPD
JAN 2021
Geographic position Upside potential Highly strategic acquisition
• Located in the Lower Republic • Successful recent drilling • Zenith acquired 100% of AAOG
of the Congo Basin, West African undertaken during 2018 and Congo, the former operator of the
Atlantic Margin, which extends from 2019 identified multiple potential Tilapia oilfield with a 56% interest.
Gabon down to Angola, a prolific productive reservoirs across a • Remaining 44 percent was
hydrocarbon region number of formations including held by the national oil company,
• Individual wells in this region have the regionally proven Mengo and Société Nationale des Pétroles
recorded production rates of up to Djeno reservoirs du Congo (“SNPC”).
5,000 barrels of oil per day. • Recent expert wireline log
• Acreage is situated 1.8km offshore analysis* (has indicated that
(drilled from onshore negating reservoir quality is “between
the necessity of offshore drilling good and excellent”.
equipment)
*commissioned by AAOG Congo after drilling
• First production in 2008.
activities in the Djeno REPUBLIC
• Close to nearby infrastructure OF THE
(Oil storage /processing facilities - CONGO
45-minute drive from Point Noire
and 17km from nearest refinery.)
SLIDE TILAPIA LOUBOMO
04 BRAZZAVILLE
POINTE-NOIREACQUISITION HIGHLIGHTS TILAPIA
PRODUCTION
PRODUCTION
POTENTIAL FOLLOWING
NATIONAL
PRODUCTION
APPROX DRILLING APPROX
REPUBLIC OF THE CONGO, 30 UP TO 5,000 350,000
2021
ZENITH ENERGY TILAPIA BOPD BOPD BOPD
JAN 2021
AAOG Congo’s licence to operate the Tilapia SNPC owes AAOG Congo approximately Zenith has commissioned a new Competent
oilfield (“Tilapia I”) expired on July 18, 2020, as US$5.3 million. Zenith has met with SNPC and Person’s Report in compliance with Canadian
publicly announced by Zenith Energy and expects to obtain the full repayment of the securities laws, specifically the COGE Handbook
previously announced by AAOG plc. aforementioned amount. and National Instrument 51-101 - Standards of
Disclosure for Oil and Gas Activities.
The seller of AAOG Congo has also novated
100% of the intercompany loans with AAOG
Congo to Zenith as of the date of Completion,
equivalent to approximately £12.5 million.
Plans to commence drilling activities in Zenith has submitted an offer to the Ministry of Plans to commence drilling activities in well
well TLP-103C at the earliest opportunity in Hydrocarbons for the award of a new 25-year TLP-103C at the earliest opportunity in the event
the event that the Company is successful licence in relation to the Tilapia oilfield, to be that the Company is successful in obtaining a
in obtaining a new 25-year licence for the named “Tilapia II” and established a new local new 25-year licence for the Tilapia oilfield.
Tilapia oilfield. subsidiary, Zenith Energy Congo SA, at the
request of the Ministry of Hydrocarbons. REPUBLIC
OF THE
CONGO
SLIDE TILAPIA LOUBOMO
05 BRAZZAVILLE
POINTE-NOIREPOTENTIALLY TRANSFORMATIONAL PRODUCTION
FROM THE MENGO AND DJENO FORMATIONS
2021 REPUBLIC OF THE CONGO,
TILAPIA
ZENITH ENERGY
JAN 2021
TLP-103C TLP-103C-ST
SW TLP-103C TLP-103C-ST NE
Ocean 0M
Ocean
Land NE Land
TILAPIA LICENCE
TILAPIA LICENCE
As publicly announced, Zenith
intends to contract a suitable TLP-103C SIDETRACK
and fully inspected drilling LOEME
rig to sidetrack TLP- 103C and (Aptian) = DRILLING RIG
thereby achieve potentially 1000M
transformational production R2 = OIL POOL
from the Mengo and Djeno (Barremian)
formations once a new 25-year = TLP-103C:
ALREADY DRILLED
licence is obtained in respect of
= TLP-103C SIDETRACK:
the Tilapia oilfield. MENGO
TO BE DRILLED
2000M (Barremian)
An independent review ofthe
petrophysical analyses of drilling
activities in well TLP-103C
concluded that reservoir quality TLP-103C-ST
DJENO
is between good and excellent,
(Neocomian)
supporting the commercial 3000M
decision to seek potentially
TLP-103C-ST
transformational production
from the Djeno formation.
VANDJI
(Neocomian)
SLIDE 4000M
06 800000 801000 802000 803000 804000 805000 806000 807000 808000 809000 810000ACQUISITION HIGHLIGHTS TOTAL CURRENT
PRODUCTION
TOTAL CURRENT
DAILY PRODUCTION
NATIONAL
PRODUCTION
REVENUE APPROX APPROX APPROX
TUNISIA US$15M 550-600 35,000
2021
ZENITH ENERGY BOPD BOPD
JAN 2021
The Company has acquired a cumulative conditional interest of 45%
in the North Kairouan permit and the Sidi El Kilani Concession (“SLK”)
This results from the following transactions:
Conditional acquisition from KUFPEC, Conditional acquisition from CNPC Completion of both acquisitions
a subsidiary of the State of Kuwait’s International (Tunisia), a subsidiary of is conditional on approval being
national oil company, of its 22.5% China National Petroleum Corporation granted by the Comité Consultatif
working interest for a consideration (CNPC), of its 22.5% working interest des Hydrocarbures (“CCH”) of the
of US$500,000 in April 2020. On June for a consideration of US$300,000 in Republic of Tunisia.
11, 2020, the Company announced September 2020.
that it had already paid US$250,000
to KUFPEC and that it expected the Tunis
balance consideration payable would
be satisfied by the oil production
revenue generated since the date of
the acquisition.
Sidi El-Kilani
TUNISIA
Currently producing at an approximate
rate of between 550-600 barrels of oil per
day using natural flow regime (without
SLIDE
artificial lift technology).
07WORKING INTERESTS IN
ITALY - CASH GENERATING 368.96 KM2
ENERGY PRODUCTION OF ITALIAN NATURAL
GAS PRODUCTION
2021 A low-risk jurisdiction with a strong EU regulatory framework CONCESSIONS
ZENITH ENERGY
JAN 2021
Italy has a long and successful history of natural
gas production and exploration across its territory
SOUTHERN GAS
• Balanced energy production portfolio providing CORRIDOR - TAP
cashflow with stable low-cost natural gas production PRODUCTION
CONCESSIONS
• Moderate investment expected to achieve significant
increase in natural gas production ITALIAN NATIONAL
Genoa PIPELINE
• Highly profitable electricity is produced at the Torrente INFRASTRUCTURE
Cigno concession using low-grade sour gas production
• Italy’s economy is heavily dependent on oil and gas
The Company announced on July 31, 2020, that it had ADRIATIC
SEA
received a legally binding loan facility for an amount of
ROME
approximately EUR 300,000 from an Italian governmental
entity. Under the terms of the loan, all funds to be disbursed
are to be utilised for the purpose of the establishment of
commercial activities in Africa, specifically in the Republic
of Congo and the broader West Africa region.
The Company plans to file an application for a
second loan facility of this kind, designed to assist
Italian commercial enterprises in the current challenging
financial climate, for the purpose of making infrastructural
investments in its Italian natural gas, condensate and
MEDITERRANEAN
electricity production operations. SEA
NATURAL GAS
2P RESERVES
CONDENSATE
2P RESERVES 6 OPERATED
CONCESSIONS
2 EXPLORATION
PERMITS
MONTHLY
ELECTRICITY
NPV
DISCOUNTED
16.3 255 PRODUCTION: AT 10%
SLIDE
08 BCF MBBLS 3 NON-OPERATED
CONCESSIONS
2 EXPLORATION
PERMITS AWAITING
APPROVAL
900 MWh US$15MOWNERSHIP OF DRILLING EQUIPMENT
Zenith strongly believes in the benefits of owning 1. Cost control
2021
ZENITH ENERGY
and operating the key equipment required to develop 2. Operational independence
JAN 2021 its asset portfolio. For the following reasons: 3. Direct oversight on execution
1 1
WORKOVER RIG DRILLING RIG
( 375HP) (1 , 200 HP )
capable of drilling to
a depth of approx 5,000 metres
(depending on well design)
SLIDE
09SUMMARY INVESTMENT CASE PRODUCTION POTENTIAL
OF APPROX DURING 2021
Ideally positioned to complete a number of highly prospective 2,000 -
acquisition opportunities at advantageous terms across Africa
2021
ZENITH ENERGY
JAN 2021 in the current low oil price environment
3,000 BOPD
Tunis
MANAGEMENT ALIGNED NEAR-TERM PRODUCTION
WITH SHAREHOLDERS - POTENTIAL UPON
THE BOARD OF DIRECTORS ACHIEVEMENT OF NEAR-
TUNISIA
AND MANAGEMENT TERM OBJECTIVES IN
COLLECTIVELY TUNISIA AND CONGO:
HOLD APPROXIMATELY 300 BARRELS PER DAY
10 PERCENT OF ZENITH’S
SHARE CAPITAL .
1 4
Uniquely positioned in the current low oil price Stringent due diligence
environment to pursue an aggressive, countercyclical in place for all new assets
acquisition campaign in Africa targeting low-risk oil being acquired
production assets generating significant production
revenue even at US$30 oil.
REPUBLIC
OF THE
CONGO
2 3 5
Highly experienced Ready availability of drilling Highly knowledgeable and
operational team with equipment and technical well connected Advisory Brazzaville
proven track-record of personal across all acquisition Committee recently
success opportunities. (Company created to support its
owns key drilling equipment business development
SLIDE
including a drilling rig (1,200hp) activities in West Africa
10 and a workover rig (375hp))TEAM
Executive Directors & Senior Management
2021
ZENITH ENERGY
JAN 2021
Luca Benedetto Luca Benedetto trained in Italy as a registered accountant with
Chief Financial Officer further education in IFRS accounting and consolidation at IPSOA
& Executive Director Milan. He has more than twenty-five years of accounting, auditing
and financial administration experience.
(UK based)
Luigi has more than 40 years of experience in the petroleum industry
Andrea Cattaneo Luigi Regis Milano
during which he has been the executive director of a large trading
Chief Executive Executive Director, Managing company specialised in oil refining, processing and trading. Luigi has
Officer & President Director of Italian Operations held a significant interest in an Italian oil refinery since 2000. Luigi is
(UK & Africa based) (Italy based) one of Zenith’s founders and currently serves as Managing Director of
its Italian subsidiary.
Former Mexican Ambassador to Food and Agriculture Organisation
Proven deal maker and Dr. José Ramón López Portillo
(United Nations) and Minister in Mexican Federal Government. Leading
government advisor with Chairman and Non-executive researcher on the energy security of Mexico. He is also the Former
specific expertise in FSU Director, (UK based) Chairman of the FAO council. Holds a doctorate from the University
and African countries. He
of Oxford in political science and international relations.
has more than 30 years of
experience in sovereign
Experienced energy industry executive with strong geological, technical
loans, capital markets and oil Dr. Dario Sodero
and exploration expertise in North America, North Africa and the Middle
trading between Western and Non-executive Director, East. Holds a doctorate in Geological Sciences from the University of
emerging countries. Andrea is (Canada based) Turin, Italy.
one of Zenith’s founders and
largest shareholders.
Norwegian national with strong expertise in large-scale real estate
Erik Sture Larre Jr
development projects, banking and the oil & gas industry. Erik served
Non-executive Director as Deputy Chairman of SpareBank 1 Nord-Norge and as Chairman of its
(Norway based) Audit Committee.
Sergey has over 25 years of experience in business management in
Sergey Borovskiy
China and Hong Kong, he is fluent in Russian, English and Mandarin
SLIDE Non-executive Director and holds a degree in economics. He is Chairman of various oil & gas
11 (China based) consulting, engineering, trading, chemical, seismic research and
exploration services companies based in China and Hong Kong.CONTACT Zenith Energy Ltd.
Andrea Cattaneo
Chief Executive Officer
E-mail: info@zenithenergy.ca
Tel: +1 (587) 315 9031
Allenby Capital Limited -
Financial Adviser & Broker
Nick Harriss, Nick Athanas
Tel: + 44 (0) 203 328 5656
SLIDE
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