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Zenith Energy receives LOI for US$2 million investment

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Oilfield Technology,

Zenith Energy has signed a non-binding Letter of Intent (LOI) with an Arab consortium of strategic institutional investors focused on African development opportunities, to provide an investment of US$2 million in Zenith’s share capital at a price of 2.5 pence per Zenith common share, representing a premium of 384% over yesterday London's closing mid-market price.

Upon completion of the acquisitions, it is anticipated that Zenith will have a production in excess of 1500 bpd.

Andrea Cattaneo, CEO, commented: “It is extremely encouraging to receive such interest from a new institutional investor, especially during the unprecedented circumstances the world is currently facing.

The strategy Zenith is pursuing of expanding countercyclically at a time of great opportunity for portfolio enrichment by acquiring large, revenue generating oil production assets is attractive to institutional investors who see material future value for a junior oil company of our size with a clearly defined set of development objectives.

We look forward to the journey ahead with confidence in the belief that once the Covid-19 pandemic begins to be tackled successfully, and lessens in its impact, there will be a progressive recovery in financial markets and oil prices.”

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