LONDON: Zenith Energy Ltd has decided to discontinue its plans to acquire a Norwegian oil & gas company, Nordic Petroleum AS, by way of an exchange of equity as announced on November 4, 2019.
Due to unexpected complications and potentially high costs to complete the Proposed Acquisition, the Board has decided not to proceed with the Proposed Acquisition.
Zenith will continue with its plans to establish a Norwegian vehicle for intended participation in future licensing bids to be organised by the Norwegian Ministry of Petroleum and Energy, as well as to actively pursue the potential acquisition of mature energy production assets. The Company intends to create a Norwegian subsidiary (anticipated to be named Zenith Energy Norway AS) in the immediate future.
In the meantime, the Company’s strategy to enrich its portfolio has recently been demonstrated by the acquisition of Coro Energy’s producing assets in Italy, as announced on December 3, 2019, which shall position the Company as one of Italy’s leading natural gas producers and operators. It is expected that the acquisition of further European natural gas production assets may be completed in the near future.
Andrea Cattaneo, Chief Executive Officer of Zenith, commented: “The Board views Norway as an ideal environment for the development of junior energy companies such as Zenith on account of its highly specialised investor community and the country’s long history of successful energy production.
It is regrettable that the proposed acquisition of Nordic could not be completed due to unforeseen complications and the potential incurrence of high costs. We wish Nordic and its shareholders all the best in their future endeavours.
At the same time, we are pleased to have found a strategically preferable, non-dilutive, alternative avenue for the imminent establishment of our presence in Norway.”