NEW BENIN ASSET GREAT POTENTIAL

TheLondonOiler
ZENA 22.09.2022 kl 10:15 10761

ZENITH ENERGY LTD.

("Zenith" or the "Company")

Offer for Sèmè Field in Benin

Zenith Energy Ltd. (LSE: ZEN; OSE: ZENA) , the energy company with proven revenue generating production, exploration and development assets in Africa and Europe , is delighted to announce that on September 15, 2022 (the last valid day for participation in the offer submission process) it presented an offer (the "Offer") to the relevant Ministry in the Republic of Benin for the award of an initial nine-year licence to operate Block 1 containing the Sèmè oilfield, offshore Benin ("Block-1").

About Block-1

· A proven oilfield, with significant unexploited potential, having estimated recoverable reserves (P2) of 22-28 million barrels of oil and 428 billion cubic feet of natural gas (Kerr McGee 2005).

· Has produced a reported 22 million barrels of oil to date, with last production having taken place in 1998.

· Historical recovery factor of 22%, leaving significant margin for improvement of the recovery factor utilising modern completion techniques, horizontal drilling, and improved 3D seismic.

· Last produced at a rate of approximately 2,000 barrels of oil per day.

· 23 wells have been drilled in Block-1, with the last well having been drilled in 2009 by South Atlantic Petroleum (SAPETRO). This well discovered oil, however, due to the prevailing oil price at the time (approx. US$30) it was deemed uncommercial.

· Located in shallow water (30m) offshore with onshore facilities and tank farm for processing of oil production.

· Discovered in 1967 by Union Oil, Block-1 covers 551 sq. km with over 355 sq. km of recent 3D seismic data.

· Significant development and exploration potential in the emerging Syn-Rift play extending from neighbouring Nigeria.

· Production facilities comprised of three platforms, the last being installed in 2014-2015.



Andrea Cattaneo, Chief Executive of Zenith, commented:

"We are delighted to have submitted this Offer for what is an extremely exciting opportunity in Benin, representing the largest and most prospective oilfield in the country.

"Block-1 has significant untapped, independently assessed oil and gas reserves, a proven history of material oil production and existing field infrastructure. These key qualities make it a potentially highly enriching addition to our portfolio and fully satisfy the key criteria defining our growth strategy.

"Benin is a stable and attractive jurisdiction for foreign investment, and we look forward with great enthusiasm to working closely with the local authorities to ensure we achieve a fruitful and enduring partnership in the event our Offer is accepted ."



Details of the Offer and Next Steps

The Company has presented an offer that outlines certain investment commitments and terms to be negotiated as part of an award for an initial nine-year licence.

The Offer contains specific details surrounding how the Company will restore and expand the productivity of Block-1. Specific geological attention will be directed towards developing the emerging Cretaceous Play along the West African coast, which has proven to be a highly prolific basin extending from Côte d'Ivoire, Ghana to the West, to the east in Nigeria, with the large 'Ogo' oil and gas discovery, as well as producing in the Aje Field.

If Zenith's Offer for Block-1 is accepted, Zenith will progress in completing a rigorous due diligence process and begin negotiations with the Ministry aimed at finalising a draft Production Sharing Agreement to be approved by the legislature of Benin (in accordance with the Hydrocarbon Code).



Operationally, following potential acceptance of the Offer, the Company will seek to use the existing infrastructure installed in 2015, where previous development was stalled due to the low oil price environment at the time, to rapidly restore commercial production in the current high oil price climate for the benefit of the citizens of the Republic of Benin and Zenith Energy shareholders.

As part of the Offer, the Company has also presented a comprehensive social development plan, outlining agricultural community engagement initiatives aimed at fostering productivity and local employment, in addition to a sustainable development plan that takes into consideration the natural history of the region and places environmental sustainability at the heart of the Company's business development activities in Benin.

About Benin's Oil Industry

In recent years, there has been an attempt to revive domestic oil production in Benin following the previous involvement of various Western oil companies between 1984-1998, including the Norwegian Saga Petroleum.

In late 2019, CNPC signed a construction and operation agreement with the Government of Benin for the construction of the Niger-Benin Crude Pipeline, a 1,980km cross-border crude pipeline connecting the Agadem Rift Basin (ARB) region in Niger to Port Seme Terminal in the Republic of Benin. Construction of the pipeline is underway and is expected to be completed by the close of 2023.

Benin is a founding Member of the African Petroleum Producers' Organization ("APPO"), and its Minister in charge of Hydrocarbons serves as Vice-President of the APPO.



-ENDS-
C-Eiken
23.09.2022 kl 11:41 6111

Konjagi skrev Innlegget er slettet
Det er en artikel fra 2016, just FYI så intet med den nuværende bud at gøre

None of these applicants are Nigerian companies and the Ministry of Mines & Energy will shortly announce the winning award, sources said.

“We’re just waiting for the newly-elected government to outline policy and decide how to press ahead with fresh licensing, including the deep,” a senior official at the Ministry’s Office of Hydrocarbons (OBH) told Upstream. First produced by Norway’s Saga Petroleum in the 1980s, Seme was the subject of sustained ­efforts by Sapetro to redevelop, but the independent’s finances were hit hard by last year’s collapse in the oil price.

However, Benin is seeing its near-shore and deeper water blocks attracting increasing interest by regional and global mid-tier players after recent Benin Embayment discoveries across the Nigerian border have begun to bear fruit.

First shipments from Panoro’s Aje field are expected before the end of the month, while Nigerian-owned Lekoil hopes to develop its Ogo disovery on OPL-310. Off Benin, another Nigerian operator Oranto Petroleum is seeking a partner before drilling across blocks 5 and 6, while fellow Nigerian explorer FrazOil is interpreting 650 square kilometres of recently-acquired 3D seismic, although drilling is unlikely before 2018.

CBH, a subsidiary of locally incorporated Lusitania Petroleum, has held on alone to Block 4, in which Brazil’s Petrobras once took interest.

Onshore, no activity is anticipated on blocks B and A, still operated by UK-based Elephant Oil and Nova Scotia’s NS Oil respectively, both of which plan fresh 2D seismic.

OBH director Jean-Jacques Atchade told Upstream he has advised newly-appointed Energy Minister Dona Jean-Claude Houssou to press ahead in licensing vacant acreage.

Atchade officially retired last month but continues to work at OBH while the government decides on his replacement.

Along with a fellow exploration department retiree, Atchade will this month register his own upstream consultancy focusing on Benin and the sub-region.
Redigert 23.09.2022 kl 11:55 Du må logge inn for å svare
Svartsyn
23.09.2022 kl 11:20 6183

Spot on ,Hektor.
Det skrives så mye svada av noen at det er utrolig.
For å forenkle det hele,bra hvis vi får dratt dette i land.
Det har dog stått så lenge I ro ,at det vil bli både oppstartskostnader som er vesentlige og det vil ta tid.
Men det vil være et nytt steg mot å bli noe større.
Steg for steg er en filosofi jeg liker.
Den dagen vi kommer opp på 1000 fat i egenproduksjon for Zenith så bør dette gå på skinner.
Det har aldri sett bedre ut..
God helg til alle Zenithere.
Hilsen en gammel oljeborer som reiser fra sykehuset etter min andre hjerteoperasjon.
Aksjer er ikke alt.
Men dette trur jeg ender godt....
Daglig vrøvl hjelper ikke ( ironi)
kokkohill
23.09.2022 kl 10:13 6249

God luring denne høytsvevende Italieneren 🤣
Aqualight
23.09.2022 kl 08:43 6410

Nu er der ingen grund for at at have en holdning til at firmaet har afgivet et bud. Hvis det er lig med underligt stille, så er det bare sådan det er.

Men god dag til jer “normalt” larmende.

Aqualight 🇩🇰🇳🇴
C-Eiken
23.09.2022 kl 08:17 6482

Nej det kræver nok en større work-over for at komme op og køre igen - mange penge der skal hædes i det huld inden olien flyder
Mdg1
23.09.2022 kl 08:08 6500

Utsettelsen var nok for å svare på spørsmål angående lisensen de har lagt inn bud på. Det er uansett ikke slik at det kommer til å sprute olje fra det feltet på kort sikt.
Fakevenues
23.09.2022 kl 07:58 6538

Utsettelsen av IC grunnet "potential near-term progress" kan jo ikke sammenlignes med å levere inn et anbud på et åpent tilbud. Så jeg er enig med deg Mdg1 at her er det bare å roe ned.
Var utsettelsen bare en forlengelse av ferien, eller kan AC faktisk levere noe??
Hektor
23.09.2022 kl 07:55 6540

Er innom i ny og ned Aqualight og Svartsyn, men de er nok litt oppgitt over at det er VM å skrive mest mulig her på forumet om daytrading på ZENA ticker. Fint med litt debatt, men det er måte på for en oljemygg. LATO user er slettet.
Mdg1
23.09.2022 kl 07:47 6563

De har lagt inn bud. De har ikke fått tilslaget enda, så tenker det er tid for å roe ned og se hva som skjer videre
Tetro
23.09.2022 kl 07:41 6584

Det er merkelig stille fra de såkalte seriøse investorene i Zenith. Hvor er aqualight, svartsyn og lato f.eks????
Viking_I
22.09.2022 kl 15:51 7049

Is delighted to announce that on September 15, 2022 (the last valid day for participation in the offer submission process).
Must be received positive response in a week so Zenith Announced it will come to know time line in IC.
Redigert 22.09.2022 kl 15:54 Du må logge inn for å svare
C-Eiken
22.09.2022 kl 14:42 6865

https://www.yumpu.com/en/document/read/65294124/offshore-africa-magazine-vol-11-issue-1-february-2021-edition - Page 32
Benin Readies to Sell Seme.
Seme oildfield, block 1, operated until 2015, but falling oil prices and technical glitches forced it to abort its plans to get production back up and running. The fields is understood to still contain 20m barrels or recoverable oil. A dozen oil firms have already contacted the ministry to offer their service for Seme. If none of those accept the exploration terms stipulated in the new legislation, Benin may decide to embark on promotional campaign.
C-Eiken
22.09.2022 kl 14:10 6926

Nuværende ejer:
https://www.sapetro.com/about-us/
"we have a 100% operating interest in the Sèmè oilfield, offshore the Republic of Benin. Sèmè field is a brownfield and has a long and proven production history stretching back 30 years. Redevelopment drilling works carried out in Sèmè in 2014 and 2015 encountered some technical challenges which coupled with more than 50% decline in oil prices led to suspension of the project. SAPETRO is currently re-evaluating its options in Benin."
-Norseman-
22.09.2022 kl 10:59 7190

Hehe, tror ikke hun hadde planer om å selge skinnet på børsen.. på børsen kan aksjen stige i verdi når fellingsløyve på bjørnen er utstedt, og potensiale for å selge skinnet en gang i fremtiden er til stede
patek5146
22.09.2022 kl 10:55 7188

Lad os håbe der snart kan komme noget håndfast så vi kan komme igang med noget seriøst istedet for at vende femører hvergang feks strømprisen i IT kommer ud🙄🙄🙄, sammen med gårdsdages kredit opgradering lysner det synes jeg.
Mdg1
22.09.2022 kl 10:51 7213

Jeg har hørt en klok dame si. "Ikke selg skinnet før bjørnen er skutt"
-Norseman-
22.09.2022 kl 10:38 7290

Based on previous statements from AC, zena is seeking deals that may be closed quickly. Let's hope that this is the case with Sèmè Field. For me one of the most important information given in the RNS is; "Benin is a stable and attractive jurisdiction for foreign investment". Based on the history in Congo Brazzaville, this sentence implies that AC is confident about this opportunity.
Redigert 22.09.2022 kl 10:39 Du må logge inn for å svare
Viking_I
22.09.2022 kl 10:35 7321

my calculations based on 2P gives kr 2.09 with Tilapia, 20 times higher form current price (Conservatively will go higher 20% to 30% with amount of gas and current price)

One good institutional investor and price will go to bazooka now.
Redigert 22.09.2022 kl 10:38 Du må logge inn for å svare
TheLondonOiler
22.09.2022 kl 10:32 7348

Another great deal by AC, imagine if we get Tilapia on top of this as well as ramp in production in Tunisia, the money owed as well as increase in electricity sales. We are way undervalued at current prices I am expecting a huge rerating.
Viking_I
22.09.2022 kl 10:25 7397

Look like done deal -
Recoverable reserves (P2) of 22-28 million barrels of oil and 428 billion cubic feet of natural gas (70million Barrels Of Oil Equivalent)
- Current 2P reserve is 28 million including Tilapia .
- Proven oil field.
- 2000 bopd will give Kr 54 million per month (NOk 648 million/ year)
- Including Tilapia and Tunisia it will cross company income Nok 1.4 billion per year total.
- Total valuation will be - around kr 2.09 with $10 million investment. ( Gas and possible electricity generation not included )
Redigert 22.09.2022 kl 10:31 Du må logge inn for å svare
Barneskirenn
22.09.2022 kl 10:24 7405

«…begin negotiations with the Ministry aimed at finalising a draft Production Sharing Agreement to be approved by the legislature of Benin..»

Vi har nå snart 40 fugler på taket! :))))))

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Hva er prisen?

Benin er i hvert fall et stabilt land i Afrika. I motsetning til Nigeria.
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Er dette derfor IC ble utsatt 2 ganger??
Redigert 22.09.2022 kl 10:25 Du må logge inn for å svare
TheLondonOiler
22.09.2022 kl 10:16 7458

“ produced a reported 22 million barrels of oil to date, with last production having taken place in 1998 “ wow!