The acquisition currently produces at a rate of approximately 700 bpd, generating gross annual revenues of approximately US$15 million.
Zenith is advanced negotiations with an international oil major to sign an offtake agreement for the asset's future oil production in order to fund the acquisition. There are no plans to issue equity consideration to fund the acquisition.
The company intends to complete the acquisition by 31 March 2020 subject to the satisfactory conclusion of currently ongoing due diligence activities.
Andrea Cattaneo, CEO, commented: "It is Zenith's strategy to acquire revenue generating oil and gas production assets. The acquisition represents an attractive opportunity to enrich our asset portfolio in a country where management have significant experience. We are currently performing due diligence and visiting the target asset with a view to completing the Acquisition by 31 March 2020. It is important to underline that we have no plans to issue equity to fund the acquisition or its immediate development following completion."