LONDON, UK: Zenith Energy Ltd. (LSE: ZEN; OSE: ZENA), the international energy production and development company, has signed a second MOU (memorandum of understanding) with a company incorporated in Kazakhstan to evaluate the potential acquisition of two oil development assets.

The Seller holds a 100% interest in the two contiguous oil development assets located in the Kyzylorda Region of Kazakhstan. The Potential Acquisition is classified as an oil development asset because a discovery was made in 2014, and there is confirmed potential for commercial oil production activities.

The purpose of the MOU is to formalize a framework whereby Zenith’s interest in the Potential Acquisition may be completed subject to the completion of a rigorous technical and financial due diligence.

The 2P (proven and probable) reserves of the Potential Acquisition have been quantified in the amount of approximately 4.5 million barrels of oil. Fully risked 3P (proven, probable, and possible) reserves are estimated around 62.5 million barrels of oil.

Zenith Energy CEO Andrea Cattaneo said, “We are pleased to have signed a second MOU for an oil development asset in Kazakhstan. Zenith’s management and advisers have, in line with our development strategy, continued to explore additional acquisition opportunities with the objective of building a consolidated portfolio of near-term production and development assets.”

Cattaneo added, “The assets under review appear to have a clear pathway to oil production without the requirement for intensive technical and financial investment. Funding of any potential transaction in Kazakhstan will not be funded by way of equity. We look forward to reporting on our exciting progress in Kazakhstan on or before the close of November 2023.”