The Italian Ministry for Economic Development Assigns the Strangolagalli Oil Field to Zenith For Technical Supervision
(via Thenewswire.ca)
Calgary, Alberta / TheNewswire / March 3, 2016 - Zenith Energy is pleased to report that its Italian subsidiary has been selected by the Italian Ministry for Economic Development (MSE) to be the temporary operator as custodian of the Strangolagalli-Ripi oil field.
The Strangolagalli concession, located in the province of Frosinone, in the central Lazio region, and covering an area of 43.14 Km2, was operated by Pentex Italia S.r.l. until 2014, when the State reacquired title to the permit.
An old oil field, developed at the beginning of the nineteenth century on a previous mining concession for the extraction oil and bitumen naturally seeping to the surface, is present on the permit. This field was called "Petroglie" and, having been placed on production in 1867, is one of the oldest Italian oil fields.
Up to 14 wells were producing from shallow sandy turbidite units of the late Miocene Frosinone formation, at depths ranging from 100 and 400 meters, where liquid hydrocarbons have migrated from deeper reservoirs. Such migration from dolomitic and organic-rich Triassic shelf carbonates has been confirmed through geochemical studies. It is worth noting that the concession area is prospective for the deeper carbonate shelf sequences which are oil bearing in other regions of Italy.
Zenith's role will be to operate the field as a custodian until the property is re-auctioned by the Ministry for economic Development, and this will give the company an insight in the concession's expected potential.
Zenith's CEO, Andrea Cattaneo, comments, "I am pleased to report that the Italian Ministry for Economic Development has selected our subsidiary to be the temporary operator as custodian of the Strangolagalli field. This represents an endorsement of the reputation and technical expertise of our Italian team, of which everybody here in Canada is very proud of ".
The Company is also pleased to report that it has issued (i) 198,167 Common Shares at a deemed price of $0.075 per Common Share and (ii) 526,705 Common Shares at a deemed price of $0.09845 per Common Share to certain vendors to settle debts owing by the Company, representing in aggregate CDN$66,716.61 (the "Share Settlement"). The securities issued pursuant to the Share Settlement will be subject to a four month hold period. Following closing of the Share Settlement, the Company will have 40,469,406 Common Shares issued and outstanding. The Share Settlement is subject to the submission of final documentation and final approval of the TSX Venture Exchange.
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 the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
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 President & CEO
Email: info@zenithenergy.org
Telephone: (403) 938-8154
Telefax: (403) 775-4474
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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