Calgary, Alberta / TheNewswire / September 25, 2015 - Zenith Energy Ltd. ("Zenith" or the "Company") (TSX VENTURE: ZEE) is pleased to announce that the Board of Directors have authorized the establishment and opening of a representative regional office in Baku, the capital city of Azerbaijan. The location of the office is near Port Baku, a new section of the city, on the 17th floor of the central skyscraper known as Azure Business Plaza.
Azerbaijan is estimated to hold proven reserves of 14.748 billion barrels (2 billion tonnes) of crude oil and condensate and an additional reserve of 2.55 trillion cubic meters (90 Tcf) of natural gas. (Source: State Oil Company of Azerbaijan Republic (SOCAR) and as reported by Azeri-Press Agency (APA), http://en.apa.az/). Based on rankings and data provided by The World Factbook, a publication of the Central Intelligence Agency (https://www.cia.gov/ ), SOCAR's updated disclosure would place Azerbaijan with the 15th largest proved oil reserves in the world.
Andrea Cattaneo, Zenith's CEO and President, comments "We look forward to investing in Azerbaijan, a proven and dynamic oil and gas country with extensive opportunities for foreign investors. Our thorough due diligence has focused on key aspects such as rule of law, and confirmed the country's respect for title, the ownership of assets, and ability to negotiate and enforce agreements. Additionally, our management has ascertained that both the country's working conditions and the relationship with the local community are favorable and quite attractive for a foreign energy investor."
Azerbaijan is located at the crossroads of Western Asia and Eastern Europe. After gaining independence in 1991, Azerbaijan became a member of the International Monetary Fund, the World Bank, the European Bank for Reconstruction and Development, the Islamic Development Bank and the Asian Development Bank. Azerbaijan is one of the birthplaces of the oil industry, with trade dating back as early as the 3rd and 4th centuries. The world's first paraffin factory was opened in the country in 1823 and the first oil well was drilled in 1847. In the 1870s, the region experienced the first true oil boom with oil drilling beginning on a massive scale highlighted by the Vermishevsky oil gusher on June 13, 1872 which produced an estimated 2600 barrels per day during its first three months. Several cycles of oil development have occurred within the country, and after gaining independence in 1991, Azerbaijan started to attract significant foreign investment.
Azerbaijan's development as a supplier of petroleum to Europe continues to evolve with the national strategy to develop infrastructure including the BTC (Baku-Tbilisi-Ceyhan) pipeline, officially opened on July 13, 2006. The BTC pipeline transports crude 1,769 km from the offshore Azeri-Chirag-Guneshli oil fields in the Caspian Sea to the Mediterranean Sea. Possessing the capacity to transport more than one million barrels per day, this pipeline is the second longest in the world and pumps oil from the Sangachal Terminal near Baku (Azerbaijan), through Tbilisi (the Georgian Capital) to Ceyhan, a port on the south-eastern Mediterranean coast of Turkey.
SOCAR, the State Oil Company of Azerbaijan Republic, has estimated Azerbaijan's proven recoverable crude oil reserves are 2 billion tonnes. During 2012, the country produced approximately 879,800 barrels per day with a reported domestic consumption at 85,000 barrels per day, making Azerbaijan among the 20 largest exporters in the world. Wholly located within the South Caspian Sea basin, Azerbaijan is one of the region's most strategic export openings to the west, and an increasingly important supplier of natural gas to Europe via the country's existing and proposed pipeline network.
About Zenith Energy Ltd.
Zenith focuses on near term producing properties that can be further optimized with its engineering and technical experience. 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.
Zenith management is actively pursuing onshore fields with low acquisition costs from national or senior companies that have chosen to allocate their capital to unlock non-traditional resources with typically higher costs. Zenith's acquisition costs are further minimized by a strategy of reinvesting a portion of future cash flows back to remediation and capital improvements typically forgone on older fields. Combined with the use of modern technological practices and the Company's technical expertise, management continues to demonstrate the capacity to increase production and optimize remaining reserves.
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.
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 concerning (i) the Company's goal of acquiring producing properties in Azerbaijan, (ii) the current and future production potential of the properties, (iii) the revenue associated with production, (iv) the pricing and profitability of oil and gas production, (v) the oil, gas and condensate within Azerbaijan and (vi) the current and potential production in Azerbaijan. The forward-looking statements and information are based on certain key expectations and assumptions made by Zenith, including the ability to execute its strategy and realize its growth opportunities including its ability to raise financing needed to execute its plans. 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. These risks and uncertainties, include, but are not limited to, Zenith being unable to obtain additional financing or other resources to realize its growth opportunities. 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
Telephone: (587) 437-1984
Telefax: (403) 775-4474
Baku phones : + 994 51 41 40 142 or alternatively + 994 51 31 06 589
This press release is not to be distributed to U.S. newswire services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S. securities law.
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