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Letter of Intent for US$2 million investment
March 31, 2020
ZENITH ENERGY LTD.
(“Zenith” or the “Company”)
Letter of Intent for US$2 million investment
Zenith Energy Ltd., (“Zenith” or the “Company”), (LSE: ZEN; TSX.V: ZEE; OSE: ZENA-ME), the international oil & gas production company, is pleased to announce that it has signed a non-binding Letter of Intent (“LOI”) with an Arab consortium of strategic institutional investors focused on African development opportunities, to provide an investment of US$2 million in Zenith’s share capital at a price of 2.5 pence per Zenith common share (equivalent to approximately NOK 0.33 or CAD$0.043), representing a premium of 384% over the closing mid-market price of Zenith’s common shares admitted to trading on the London Stock Exchange on March 30, 2020 (“Strategic Investment”).
Under the terms of the LOI, the Strategic Investment would be subject to a number of conditions including the completion of the publicly announced Tunisian Acquisition, as well as the successful acquisition of two oil production licenses currently being negotiated with a national oil authority in West Africa (as announced on March 12, 2020).
The Strategic Investment will also be conditional on the appointment of a director to Zenith’s Board.
Upon completion of the aforementioned acquisitions, it is anticipated that Zenith will have a daily production in excess of 1,500 barrels of oil per day.