Calgary, Alberta / TheNewswire / October 12, 2016 / Zenith Energy Ltd. (“Zenith” or the “Company”) is pleased to announce that it has received the award for ‘Junior Exploration & Production Company of 2016’ by ‘The Oil & Gas Year’ (TOGY) - Azerbaijan 2016 edition.  TOGY ranks foremost among energy sector publications and offers in-depth coverage of over 30 markets, including reports and interviews with key industry players. TOGY is distributed to more than 100 countries and is found digitally at http://www.theoilandgasyear.com/.

 

Andrea Cattaneo, CEO of Zenith Energy Ltd. comments, “We are truly honored to receive this award from such an esteemed publication. It confirms the hard work that our management has directed towards first closing the Azerbaijan acquisition, and now operating the Country’s largest onshore oilfield in partnership with SOCAR.  Our confidence in Azerbaijan was confirmed during negotiations with SOCAR and the continued support from Government. Zenith eagerly looks forward to extending this momentum and validating such confidence in the Company through operations of the highest integrity. Indeed, this award provides further incentive for the Company to continue our work, increase production in Azerbaijan and provide value to Zenith investors.”

 

Zenith Aran Oil Company Ltd, a wholly-owned subsidiary of Zenith, recently assumed operations of the largest onshore oil concession in Azerbaijan through its subsidiary, Aran Oil Operating Company Limited, as outlined in the August 24th, 2016 disclosure. The assets under management continue to produce approximately 300 barrels of oil per day from fields that SOCAR (the national oil company of Azerbaijan) has identified have historically produced in certain periods at a rate above 9,000 barrels of oil per day.

 

Zenith’s extensive 642.4 square kilometer onshore concession encompasses the three fields of Muradxanli, Jafarli and Zardab in the Republic of Azerbaijan. The duration of the REDPSA (Rehabilitation Exploration Development Production Sharing Agreement) ffis 25 years, with a potential extension of 5 additional years. Zenith remains focused on building daily production and expanding the proven reserves for the concession, and has advanced a work plan focused on the rehabilitation and development of the contract block, which should be approved by SOCAR, which retains a 20% participating interest in the assets.

 

Zenith’s REDPSA is essentially a variance on the Production Sharing Agreement  (PSA) where the Company participates in the redevelopment and revival of oilfields by sourcing not only investment, but provides the technical ability and modern environmental expertise for its national partner, without being over-burdened by capital requirements that generally limit the participation by smaller entities. Zenith’s expertise in operating in Argentina and Italy have thus been crucial in enabling the Company to establish the REDPSA, which now outlines the binding work commitment necessary to be achieved during the tenure of the contract. Zenith’s REDPSA holds the strength of statutory law in the Republic of Azerbaijan as ratified legislation.

 

Management anticipates that Zenith Aran will be able to grow from the current base of production through investments in technology, enhanced production techniques, significant infill development opportunities and future step out exploration.

 

About Zenith Energy Ltd.

 

Zenith Aran Oil Company Limited is a fully owned affiliate of Zenith Energy Ltd.  Zenith Energy Ltd focuses on the acquisition and further development of proven onshore oil and gas fields where production has declined over time, but which are capable of increased productivity following an injection of capital and optimization through its corporate engineering and technical expertise. To maximize shareholder value, Zenith targets acquisitions of production opportunities that offer strong logistics and close proximity to refineries and pipelines. Zenith’s management and directors have extensive international and governmental experience and possess the technical knowledge to execute this strategy.

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward-looking statements and information. The forward-looking statements and information are based on certain key expectations and assumptions made by Zenith. Although Zenith believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because Zenith can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. Zenith undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

 

For further information, please contact:

 

Jose Ramon Lopez-Portillo                                                 Andrea Cattaneo

Chairman of the Board                                                 CEO & President

 

Email:                 info@zenithenergy.ca

Telephone:         (587) 315-9031

Telefax:                 (403) 775-4474