(via TheNewswire)
Calgary, Alberta / TheNewswire / June 28, 2017 - Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; TSX.V: ZEE) the dual listed international energy production company with production interests in Italy and the operator of the largest onshore oilfield in Azerbaijan, is pleased to announce its annual consolidated audited financial results for the year ending March 31, 2017. These results can be viewed online at: www.sedar.com and will also shortly be available for review at www.zenithenergy.ca
These results were filed on SEDAR on June 27, 2017 in accordance with TSX rules. This is the first annual consolidated audited financial report to be published since the Company was admitted to trading on the London Stock Exchange on January 11, 2017.
During the year Zenith achieved the following important milestones:
- On August 11, 2016 the handover of the Azerbaijan assets was formally completed and Zenith commenced crude oil production of approximately 275 BOPD in Azerbaijan. The acquisition of the assets in Azerbaijan was reflected in an immediate accretion of the oil gross revenues of CAD$2,560,000 (GBP 1,542,310) for the period from August 11 to March 31, 2017.
- On January 11, 2017 Zenith's entire Common Share capital was admitted to the standard listing segment of the London Stock Exchange Main Market.
- On February 20, 2017 the Company announced the divestment of its operations in Argentina. This was a strategic decision which has strengthened the Company's balance sheet and enabled Zenith's management to focus on the consolidation of its energy production portfolio in Italy and the Company's transformational oil production opportunity in Azerbaijan.
Consolidated Annual Financial Results
- During the year, Zenith reported revenues of CAD$ 4,424,000 (GBP 2,655,310) (2016 - CAD$ 791,000 - GBP 476,551), an increase of 459.3% year-on-year.
- During the year, Zenith reported a gain of CAD$ 567,378,000 (GBP 341,826,000) (2016 - loss of CAD$ 7,675,000- GBP 4,623,930) which primarily reflects the value of the Azerbaijan asset acquisition under IFRS standards.
- Net profit for fiscal year ending March 31, 2017 equates to CAD$ 4.54 (GBP 2.74) per share, on a fully diluted basis.
- As of March 31, 2017 Zenith held CAD$ 3,924,000 (GBP 2,364,080) in cash (March 31, 2016 CAD$ 138,000 - GBP 83,140).
- Cash used in investing activities totalled CAD$ 402,000 (GBP 242,191) (March 31, 2016 CAD$ 576,000 - GBP 347,020). The cash from financing activities in 2017 totalled CAD$ 5,710,000 (GBP 3,440,080), these were mostly the proceeds of the Company's admission to the London Stock Exchange, less net repayment of loans.
Highlights for the year ended March 31, 2017 include the following:
- During the year ended March 31, 2017 Zenith sold 65,432 Bbls of oil from its producing assets in Azerbaijan. This data is not comparable to that of the previous year. It is important to note that the data regarding the 2017 year includes the oil production from August 11, 2016 to March 31, 2017.
- During the year ended March 31, 2017, Zenith sold 25,124 Mcf of natural gas from its Italian assets versus 92,345 Mcf of natural gas in the 2016 comparative period. The reason for this decrease in the sales of natural gas from Torrente Cigno is the fact that natural gas production at this concession is now wholly used to produce electricity. This re-configuration reflects the greater profitability of electricity production.
- During the year ended March 31, 2017, Zenith sold 807 Bbls of condensate from its Italian assets compared to 906 Bbls of condensate in the 2016 comparative period, a decrease of 11%.
- During the year ended March 31, 2017, Zenith sold 9,636 MWh of electricity from its Italian assets.
- The EPS basic for 2017 stands at CAD$ 8.15 (GBP 4.91), and diluted is CAD$ 4.54 (GBP 2.74) - loss of (CAD$0.23) (GBP 0.14) in 2016. Details of the potentially dilutive effects of options and warrants outstanding are set out in Note 13 of the Financial Statements.
Corporate Activities
- Gross fundraising of CAD$ 5,288,240 (GBP 3,187,000) completed in January 2017.
- Comprehensive Azerbaijan workover program started in February 2017.
- Loan re-payment of US$ 700,000 (CAD$ 932,684 - GBP 562,001) made on January 20, 2017 to significantly reduce corporate debt.
- CAD$ 407,000 (GBP 245,204) of convertible loan debt was converted on January 30, 2017 resulting in the issuance of 3,700,000 new shares.
Andrea Cattaneo, Zenith CEO, commented:
"I am pleased to present our annual audited consolidated financial results; the first set of financial results since the Company's listing on the London Stock Exchange in January 2017. Our annual results for the year ended March 31, 2017 clearly demonstrate the transformational impact of Zenith's recent acquisition in Azerbaijan. Some of these numbers have already been provided to the market in the form of our Q2 and Q3 2017 reports and are now presented in full in our annual results.
The Company has a very prosperous journey ahead with an opportunity to significantly increase our oil production revenues and thereby enhance our market capitalization as we progress with the field rehabilitation, development and exploration of the largest onshore oilfield in Azerbaijan.
This is in addition to our diversified energy production portfolio in Italy which also presents opportunities to substantially increase revenues through our production of electricity, natural gas and condensate.
The Company's primary objective is to achieve incremental oil production increases in Azerbaijan. Our oil production target of 1000 BOPD by March 31, 2018 should project Zenith towards a mid-tier market capitalization. I have full confidence that our systematic program of field rehabilitation, begun in February 2017, will achieve this target and I am very excited about our journey ahead."
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.
For further information, please contact:
Zenith Energy Ltd.
Jose Ramon Lopez-Portillo
Chairman
Andrea Cattaneo
CEO & President
Email: info@zenithenergy.ca
Telephone: +1 (587) 315 9031
Telefax: +1 (403) 775-4474
Allenby Capital Limited - (Joint Broker)
Nick Harriss
Nick Athanas
Richard Short
Telephone: + 44 (0) 203 328 5656
Optiva Securities - (Joint Broker)
Christian Dennis
Telephone: + 44 (0) 203 137 1903
Forward-Looking Statements
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 ongoing ability to maintain and grow production in Azerbaijan, (ii) the current and future production potential of Company properties, (iii) the revenue associated with production, (iv) the pricing and profitability of oil and gas production, and (v) successful exploration and a subsequent ability to achieve production. 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 finance and 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 finance or realize 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.
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