Zenith Energy expands its US presence with Stateside Energy LLC deal
LONDON, UK: Zenith Energy Ltd. (LSE: ZEN; OSE: ZENA), the international energy production company with assets in Africa and Europe, has announced that it has entered into an agreement with Stateside Energy LLC, an Oklahoma-based oil and gas operator, to acquire and operate a portfolio of oil production and development licences in Oklahoma, as well as certain other states in the USA.
Under the agreement, Zenith will set up a wholly owned subsidiary in the USA for the purpose of acquiring oil wells and licence blocks introduced by Stateside. Stateside will provide its personnel in Oklahoma to assist the business development of the new subsidiary. Zenith will also consider offering Stateside an incentive bonus structure based on achieving certain production milestones.
Stateside agrees to sell its seven oil production wells to Zenith’s subsidiary, subject to due diligence, for a nominal consideration. Zenith also plans to negotiate the acquisition of approximately 70 oil production wells located on property leases totalling approximately 3,200 acres from a third-party vendor identified by Stateside. The vendor also intends to sell certain oilfield service equipment to Zenith.
Zenith has agreed to invest approximately US$2 million, subject to due diligence, for the acquisition of the targets introduced by Stateside.
Andrea Cattaneo, Chief Executive Officer of Zenith Energy, commented that “We are pleased to formally begin our expansion in the USA by way of the agreement with Stateside. The advantages of operating in North America are readily apparent, and primarily include the speed of execution for transactions, with the resulting delivery of potential immediate oil production to Zenith, and the relatively conspicuous lack of bureaucratic delays and other detrimental impediments to corporate development seen elsewhere.”
He added that “The company is currently negotiating the potential acquisition of various oil production assets with significant development potential across the USA. We look forward with enthusiasm to potentially completing these in an expeditious manner, subject to rigorous due diligence, by leveraging one of our strengths: deal-making.”
Zenith Energy Ltd. is a revenue generating, independent energy company with energy production, exploration and development assets in Tunisia, Italy and the Republic of Congo. The company is listed on the London Stock Exchange Main Market and the Euronext Growth of the Oslo Stock Exchange.
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