The primary objective of the agreement is the potential acquisition of an onshore oil production licence last producing at a rate of approximately 300 bpd from the regionally proven Mengo formation as recently as 2019. Production has currently been suspended pending the assignation of a new licence.
The potential acquisition is located in the Kouilou region of the Republic of the Congo in proximity of Pointe-Noire, the country’s second largest city, and is also in the vicinity of Tilapia, the company’s recently acquired oil production asset.
Andrea Cattaneo, CEO, commented: "As is known by shareholders, the company’s senior management is currently in the Republic of the Congo conducting negotiations with the relevant authorities for the attribution of a new 25-year licence in relation to the highly prospective Tilapia asset. Our presence in the cities of Pointe-Noire and Brazzaville, the capital of the Republic of the Congo, has facilitated access to a number of compelling domestic opportunities, which have become even more commercially attractive in view of the recent decline in oil prices.
The potential acquisition has two key qualities that render it highly compatible to our portfolio: near-term profitable production potential and significant development potential to progressively maximise production on account of the potentially highly significant oil reserves in place which will require independent evaluation under Canadian National Instrument 51-101."
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/07072020/zenith-energy-enters-partnership-for-acquisition-of-oil-production-asset-in-republic-of-the-congo/
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