https://newsweb.oslobors.no/message/607209

https://www.investegate.co.uk/announcement/7954168

We are finally drilling for oil in Kazakstan!!!

Well done AC great work

December 20, 2023



ZENITH ENERGY LTD.

("Zenith" or the "Company")

Acquisition of Devonian Petroleum Limited

Zenith Energy Ltd. (LSE: ZEN; OSE: ZENA; OTCQB: ZENAF),the listed international energy production and development company with a focus on opportunities in Central Asia and the USA, is pleased to announce the conditional acquisition of an initial 50% of the shares and voting rights in Devonian Petroleum Limited ("Devonian"), a private oil company registered in the United Kingdom, for a total investment in cash and in kind presently assessed at approximately 5 million USD (the "Conditional Acquisition").

Conditional Acquisition Highlights

· In 2019, Devonian was awarded the Akkudukski exploration block (the "Akkudukski Block") of approximately 1,094 km2 in the Precaspian Basin, Kazakhstan, in a competitive bid round. Devonian has the hydrocarbon exploration rights to the basement, with the exception of the 2.9 km2 Akkuduk Jurassic oilfield, owned and operated by EmbaMinaGas, a subsidiary of KazMuniGaz, the Kazakh national oil company.

· 3-D seismic presently covers approximately 70% of the Akkudukski Block.

· The current Akkudukski Block Competent Person's Report ("CPR") assigns P50 resources of 120 million barrels above the salt and 400 million barrels below the salt.

· The Akkudukski Block is located in the Embinsky district of the Atyrau Region in the North Caspian Basin, on the eastern coast of the Caspian Sea, about 250 kilometres southeast of Atyrau the regional oil capital.

· In supra-salt reservoirs above the Kungurian Evaporate regional seal, an undeveloped Middle Triassic oilfield in sandstones underlies the Akkuduk Jurassic oilfield. This was identified in the AK-20 well, drilled in 2016, which recovered low sulphur light oil at 2,660m in an MDT test on Wireline in addition to seeing gas in the Jurassic at 1,913m. There are, additionally, at least 6 mid-Triassic seismic prospects and at least 1 more Jurassic seismic lead. Jurassic well KM-1 encountered more than 30m of oil-bearing sands in 2008 from 1,680 to 1,720m. In sub-salt reservoirs, a potential super-giant gas-condensate seismic prospect named 'Zholdaskali', geologically analogous to both the super-giant Tengiz oilfield operated by Chevron with approximately 25 billion barrels recoverable oil, located circa 60 km to the southwest, and to the adjoining Ansagan field, with approximately 400 million barrels of oil equivalent recoverable reserves, has been identified. The Akkudukski Block also contains potential reservoirs in 4-way closures, identified on seismic, in Lower Permian and Carboniferous sands.

· The Akkuduk producing Jurassic oilfield was discovered in 1981 with production in two Callovian sandstone horizons in a fault block with 4-way closure over a Kungurian evaporite diapir. The Jurassic oilfield has produced just over 6 MM bbls light oil on primary recovery to date. The Zholdaskali lead has been mapped on seismic in 2019 with 2-D and 3D seismic covering most of the lead. Devonian has subsequently identified Jurassic and deeper Permo-carboniferous sandstone seismic prospects. A deep parametric well, AKK-1P, was drilled in Soviet times to investigate a 45x10 km seismic feature seen (in low resolution 2D seismic) in the Devonian at circa 7,000m but drilling was suspended at 6,290m because of high pressure gas being encountered and tested.

· Devonian was the first UK company to be awarded a block of oilfields following a competitive government bid round, in accordance with the new code of the Republic of Kazakhstan 'On Subsoil and Subsoil Use' ("SSU Code"), by way of its local subsidiary, DP Energy LLP ("DP Energy") in which Devonian has a 99% interest.

· DP Energy holds a joint exploration and production contract for a term of six years from July 2019, to be followed by a production licence for a duration of 25 years subject to certain conditions being satisfied, primarily seismic reprocessing and the drilling of one new well.



· Under the terms of the Conditional Acquisition, Zenith has paid Devonian an initial deposit in the amount of US$200,000 (the "Deposit").

· A second tranche in the amount of US$1.8 million will be payable on the completion of a satisfactory legal and technical due diligence by Zenith 60 days from the date of signing the Conditional Acquisition (the "Exclusivity"), and the receipt of all necessary regulatory approvals in the Republic of Kazakhstan ("Completion").

· The Exclusivity will govern the commercial finalisation of the final terms and deal structure for the acquisition of the remaining 50% of DP to be paid in Zenith equity (the "Final Contract").

· If the Conditional Acquisition is not completed, Devonian will repay Zenith by set-off and will issue Zenith ordinary shares in the capital of DP representing 3% of its fully diluted share capital.

· The total amount of US$2 million, having been paid upon Completion, will be complemented by an additional consideration estimated in the amount of approximately US$3 million to cover the costs for the drilling and testing of a new well, to a maximum depth of 3,000 metres, in the Akkudukski Block (the "First Well"). This First Well will target either Triassic sandstone reservoirs at Akkuduk or Jurassic sandstone reservoirs at Kamen. The selection of the drilling location for the First Well will be mutually agreed.

· The Company has agreed to transport its drilling rig, a 1,200hp 260-ton onshore drilling rig ("ZEN-260"), to the Republic of Kazakhstan from Georgia, where it has been stored in recent years, for the purpose of drilling the First Well. Zenith will initiate the necessary importation formalities and obtain the required approvals and certifications for mobilisation of the ZEN-260 and ancillary drilling equipment to the chosen well location.

Zenith confirms that following the signing of the Conditional Acquisition, it has now discontinued all other negotiations in respect of potential acquisitions in the Republic of Kazakhstan. The Conditional Acquisition will be its sole focus.

Andrea Cattaneo, Chief Executive Officer of Zenith Energy, commented:



"We are delighted to have agreed terms for the acquisition of Devonian Petroleum, representing our first acquisition in the Republic of Kazakhstan.

The Company's management has been able to appreciate the significant development potential of the Akkudukski Block, specifically the highly material recoverable reserves contained therein.

The ownership of our drilling equipment, when viewed in consideration of the size and range of geological opportunities to be found within the Akkudukski Block, presents an attractive opportunity to drill "in succession" with the objective of maximising production revenue and profitability during a time of favourable energy prices.

We look forward to benefitting from the technical knowledge and geological expertise of the Devonian Petroleum team in respect of the Akkudukski Block and to commencing our operational journey in Kazakhstan."



Alastair Murray, Chief Executive Officer of Devonian Petroleum, commented:

"The deal with Zenith Energy is of great importance because it should enable the successful migration through to production of the potentially transformational reserves contained within the Akkudukski Block.



We identified the unexploited value potential of the Akkudukski Block from as early as 2017, following significant geological investigation, and we were successfully awarded our current licence following a highly competitive bid round involving more than ten other companies in 2018/19.



Our first phase of technical work will be the selection of a low-risk drilling location in one of the already discovered structures, as well as remapping the Jurassic discovery in the south of the Akkudukski Block, targeting approximately 40-80 million barrels in recoverable oil reserves.



We expect this technical work will be completed by summer 2024, creating an exciting 'drilling pipeline' for the ZEN-260 rig being mobilised from Georgia as part of what we expect to be a long-term and mutually successful partnership between Zenith Energy and Devonian Petroleum."



Joint comment by Andrea Cattaneo and Alastair Murray:



"Andrea and I are fully aligned in our belief that this acquisition will prove beneficial, not only to the respective stakeholders of Zenith and Devonian, but also, more broadly, to the Republic of Kazakhstan. This is because it will demonstrate that successful Foreign Direct Investment (FDI) in the Kazakh SME (small and medium sized enterprise) oil and gas sector can be successfully delivered, in this case by a listed international energy company, and that new jobs and a range of positive commercial opportunities will be brought about."

The current Akkudukski Block Competent Person's Report ("CPR") assigns P50 resources of 120 million barrels above the salt and 400 million barrels below the salt.

520 million barrels, not bad work by Andrea. Very impressive!

https://www.finansavisen.no/energi/2023/12/20/8074358/zenith-kjoper-halvparten-av-britisk-selskap-satser-alt-i-kasakhstan

A lot of information to digest there, but it does look as if we have finally arrived at the potentially company-making asset that Andrea has talked about acquiring these last few years. With a potential 500 million barrels of oil there and a preliminary drilling target of between 40-80 million barrels of oil, we are looking at the big leagues if it works.

Voksende makt innen energisektoren,spennende fremover👍😁🇧🇻

Må leses, undersøkes og fordøyes. Alle som graver rundt feltet og det britiske selskapet tar en for laget. Skal ikke ta av i den ene eller andre retningen før jeg vet noe mer her. Får man ut 10% av reservene her, skal skal man ikke kjimse av en emisjon heller.

kr 450 tusen omsatt i dag

Ja, ganske små volum generelt og ihvertfall etter en slik nyhet. Dette kan bli en svært spennende periode 👍

hei, så hyggelig at det har kommet noe nytt fra Kaz.
God Jul

Jeg har siste dagene økt med 650.000 stk i beholdningen. Dagens nyhet er meget spennende for fremtiden til zenith!

Tror jeg vil gratulerer alle aksjonærer med dagen i dag og ønske alle ei riktig god jul og et enda bedre nytt år i 2024 :) 2023 var bumpy og hard, men du verden det hjelper å være langsiktig.

Det var en deilig melding som gir rom for litt ro og jevn kursoppgang fremover. Meget spennende satsning sammen med britiske Devonian Petroleum.. Så blir det nok ytterligere info om USA også. Dette er bare helt i starten på noe som kan bli virkelig stort. Flotte land de beveger seg inn i!! Kjempe tro på fremtiden

Problemet for oss aksjonærer med denne avtalen er at nå må vi smøre oss med masse tålmodighet om vi skal oppnå en god gevinst. Denne avtalen er langt frem i tid før den kommer til å gi avkastning - så må vi leve langt og lenge i usikkerhet om den kommer til å lykkes..

Vi sitter så absolutt ikke på en nyttårsraket med denne nyheten.

Når man sitter på så store reserver vil det selvsagt også kunne prises inn i selskapet, Zena har pt en verdi mindre enn 5 villaer på Singsaker. Hva tenker du? mange millioner fat olje eller en haug med gamle tapeter?

Nej råber ikke hurra endnu. De 3 andre MOU i Kazakstan er så annulleret.
"Zenith confirms that following the signing of the Conditional Acquisition, it has now discontinued all other negotiations in respect of potential acquisitions in the Republic of Kazakhstan. The Conditional Acquisition will be its sole focus."

Ja, det er ikke umulig jeg tar feil.
Men noen nyttårsraket tror jeg ikke det blir - alt av verdier ligger langt frem i tid.

Vi skal prises på forventninger lenge før det kommer. Ha en god Jul og ett Godt Nytt År

Fra en som står på sidelinjen fremstår dette som Zeniths beste prosjekt ever hvis det går igjennom. Endelig får de brukt riggen sin og den har nok betydd mye i forhandlingene.

Jo men normalt bliver et selskab vurderet efter fremtidige værdier. Så må vi se om det bliver tilfældet.

Jeg håper like mye som dere, tro meg :)

Når man sitter på olje reserver til kr 390 000 000 000. Jepp 390 milliarder. så hadde jeg droppet noe småfelt med 200 - 400 boep om dagen. Altså ....

Pluss et stort gassfelt

Nu må vi se hvad der sker. Hvis der virkelig er så mange penge hvorfor har ingen andre gået ind før, og hvorfor har Devonian ikke selv taget det hele ?

De er et relativt lite selskap selv og har brukt penger på å komme dit de er i dag. En fin måte å skape egne verdier er å få betalt aksjer i et selskap som er med å utvikler eget felt som de kan operere i de neste 25 år. Så er de klar over at Zenith har en del penger i bakhånd og er meget sterke på avtaler. Vinn-vinn. Kommer flere nyheter her.

De angitte volumer i Akkudukski Block er ikke reserver. Vi snakker vel om prospektive ressurser slik jeg oppfatter det. Altså olje som ikke er funnet. Hadde dette vært reserver kan jeg love deg at prisen hadde vært en helt annen.

We can never be sure exactly (this is an important word which is the core reason of why we use probabilistic approach) how much crude oil is available for production in the reserves. However, we can have a good estimate (another important word). Geologists and Reservoir Engineers working for the oil and gas industry have developed numerous methods and tools to calculate the potential production and get estimates of production rates from oil and gas reservoirs to obtain a high economic recovery.

The Securities and Exchange Commission (SEC) define the reserves and resources estimates in terms of P90/P50/P10 ranges as:

“The range of uncertainty of the recoverable and/or potentially recoverable volumes may be represented by either deterministic scenarios or by a probability distribution (see Deterministic and Probabilistic Methods, section 4.2).

When the range of uncertainty is represented by a probability distribution, a low, best, and high estimate shall be provided such that:

There should be at least a 90% probability (P90) that the quantities actually recovered will equal or exceed the low estimate.
There should be at least a 50% probability (P50) that the quantities actually recovered will equal or exceed the best estimate.

For example, if a geologists’ calculation estimates that there is a 90% chance that an oil field contains 50 million barrels and another estimate says there is a 10% chance of producing another 20 million barrels in addition to the 50 million barrels. So, we would refer to:

P10 as the highest figure – it is possible that we can produce up to 70 million barrels.
P90, the lowest figure – is it proved that we can produce up to 50 million barres.

Have they drilled and found oil there? If not it is prospective resources.

Potentially half a billion barrels of oil if this was the same stock market of 10 years ago the price would have gone up 200-300% in todays news. This is the biggest piece of news AC has pulled out since zenith, better than Tunisia, Congo, Yemen and South Sudan put together.

kr
0.43
0.03 8.68%

Tror nok det kommer inn flere seriøse aktører, men det må nok mer informasjon og kunnskap før de store slenger seg på. Tenker det er bra de kjører alt inn der i Kasakhstan så har de samtidig planer i USA . Greit å ikke bite over for mye heller. Dette kan vise seg å være ett enormt felt som kan gjøre oss middels store aksjonærer til millionærer på sikt. Enormt spennende reise som starter nå!!

Hvis jeg regner litt slurvete på det og uten kostnader har jeg olje for 39 millioner pt😂😅

De sier at de søker fortsatt flere muligheter i Kazakhstan, og USA er intakt. Sør Sudan er også fortsatt i lupen. Til alle utslitte aksjonærer som vil selge, for Guds skyld se til å selge. Vi vil ha inn andre motiverte aksjonærer som vil være med videre på denne fantastiske reisen jeg tror vi har i vente.

50% av aksjekjøpet skal finansieres med Zenith aksjer…det utgjør mange aksjer med dagens kurs.
Kan vi frykte en massiv utvanning av eksisterende aksjonærer i selskapet.?

Dette var en meget god nyhet for fremtiden. Kan bli stort på sikt!

´ts look like all of my life mottos are going to hold in Zena history: That about Believe....... the other one about Rejection is protection and redirection. I hope only one don't come true : ,,Beauty in the struggling an ugliness in success``because it will be ,,Deja vu`` for me.( many times).
Happy holidays and good luck every body who is involved in positive way in all this struggling times of Zenith history. We can se light now.

Vi kjøper 50% av selskapet..

Ja, hvem sine aksjer skal kjøpes? Eller blir det utstedt nye aksjer til formålet? Dette må noen forklare meg: "Den endelige ervervelsen vil innebære å betale de resterende 50 prosent i Zenith-aksjer. Hvis oppkjøpet mislykkes, vil Devonian tilbakebetale Zenith og utstede Zenith-ordinære aksjer."
Dette blir gresk for meg- Dette er jo omtrent halve selskapet etter dagens verdi...

Ingenting som er gresk her. Det er jo meget enkelt og genialt for begge parter. Zenith betaler.. så og så mye. Rest i Zenith Aksjer. Hvis prosjektet ikke lykkes (div kriterier) må Devonian tilbakebetale utstedte ordinære aksjer. Begge selskaper vil med dette ha en sterk interesse og insentiver for å lykkes.
Devonian vil både få vekst gjennom eget selskap og aksjer, samt være med på oppturen til Zenith.
Devonian sitter på rettigheter og feltet/nå også Zenith og de er bundet i hverandre. Nå sitter de sammen på enorme verdier, og Zenith har en verdifull rigg

Alt ligger til rette for en emisjon. Aksjespleisen var nødvendig for å kunne gjøre det. Selv venter jeg en stund og ser det an før jeg evt laster opp mer. Det kan bli lenge til Zenith begynner å tjene penger. Skuffet over Africa hvor alt så lovende ut, og oppdateringer på hva som skjer i Italia uteblir. Zenith var flinke på det da strømprisene var høye og så ble det stopp. Hva skjer i Italia?

Jeg tror også Zenith bruker mye penger på lønnsutgifter etc. Leste for noen år siden at AC hadde over 10 mill i lønn, og den er i såfall enda høyere i dag. Noen som vet noe om dette?

Har vært diskutert en del ganger, tror den er på 3.5 mill

Litt info om Kaz
According to the Oil & Gas Journal (OGJ), Kazakhstan had proved crude oil reserves of 30 billion barrels as of January 2018–the 2nd–largest endowment in Eurasia after Russia, and the 12–largest in the world, just behind the United States. Kazakhstan has the largest proven oil reserves in the Caspian Sea region. Kazakhstan’s crude and condensate output in 2019 was 1.965 million bpd. It increased by 4.8% in 2018 and reached 1.814 million bpd. In 2017, Kazakhstan produced 1.73 million bpd of crude oil. Kazakhstan will produce 2.03 million barrels of oil and other liquids per day in 2020, according to the February Short-term Energy Outlook (STEO) of US Energy Information Administration (EIA).According to Business Monitor International, Kazakhstan’s net exports of crude oil is forecast to fluctuate around 1.42 – 1.55mbpd through 2027 as production increases from the prolific Kashagan and Tengiz fields. Kazakhstan is rapidly expanding production at its three large refineries; it has completed upgrades of the Pavlodar plant, Atyrau and Shymkent refineries. The total refining capacity of the three plants is increase from 13.8 to 16.5 million tons. They all are operated by JSC KazMunaiGas – Processing and Marketing. The government has announced plans to construct a fourth refinery to further expand refining capacity and production of light oil products and fuels.

Kazakhstan also has significant natural gas potential. Its proven gas reserves stand at 3 trillion cubic meters and projected reserves at 5 trillion cubic meters. The country also expects a lot of oil-associated gas that will bring 1,000 cubic meters of gas for every new ton of oil (100 million tons of new oil will lead to 100 billion cubic meters of gas). Natural gas production is utilized for well re-injection, exports and to meet domestic consumption (liquefaction and development of internal gas pipeline infrastructure).The country’s gas output - which is mostly associated gas - is forecast to continue an upward trend, reaching 29.6bcm in 2027.

Recovering oil prices have helped to stimulate Kazakhstan’s oil & gas sector, which is the main driver of the economy. Large hydrocarbon resources and current investment in large production and transportation infrastructure projects in Kazakhstan provide significant commercial opportunities for U.S. companies.

Så det skal utstedes nye aksjer til en verdi av rundt 25 millioner- sånn tolker jeg det, og dette blir x-antall aksjer til en kurs av NOK 0,40 ?? som skal tilbakebetales om det ikke lykkes..sett at kursen faller til 0,20 og verdien av utstedte aksjer halveres, så tilbakebetaler de bare halvparten av verdien de fikk aksjene for?? Mye tenking her nå.. men etter noen år med Z kan man ikke ta noe for gitt.

Murat Tarenov som er en av toppene i Devinon Petroleum Limited er Manager i dette selskapet: https://www.cpc.ru/EN/Pages/default.aspx

https://adilet.zan.kz/eng/docs/K1700000125

Så er kursen snart tilbage igen og stigning væk. Typisk når AC kommer med halve nyheder

Opplever at det er god substans i dette prosjektet. Vi krysser fingrene for at kontrakt signeres i februar og at riggen er på tur fra Georgia ASAP. Så får vi se om det kommer en del ekstra tilleggs info den 29 desember rundt voldgiftsakene.

Det kommer mer info rundt prosjektet 29 desember. Så tipper jeg det kommer flere nyheter før vi bikker 23:)