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Zenith Energy to Acquire Robbana and El Bibane Concessions in Tunisia
Monday 03 May 2021

Canadian oil and gas production company Zenith Energy Ltd's (LSE: ZEN) (OSE: ZENA) Compagnie Du Desert Ltd subsidiary has entered into a share purchase agreement with Candax Energy Ltd. for the acquisition of a 100% interest in Candax's fully owned subsidiary in Barbados, Ecumed Petroleum Tunisia Ltd, which holds a 100% interest in the El Bibane and Robbana concessions in Tunisia, the company said.

Under the terms of the deal, CDD has agreed to acquire 100% of the issued share capital of EPT for a nominal consideration of USD 100 payable at completion, as well an additional consideration of approximately USD 200,000 in the form of assumption of debt payable by the close of May 2021.

The El Bibane concession is located 16 kilometres offshore from the port of Zarzis in the Gulf of Gabes, covering an area of approximately 228 square kilometres and in approximately 7-8 meters water depth. The field was discovered by Marathon Oil Corp. in 1982.

However, it was not developed until 1998. Upon initial development, a peak production of 4,500 bopd was achieved. The reservoir is located in the cretaceous Zebbag fractured dolomite formation at approximately 2,150 metres below surface.

The Robbana concession, covering 48 square kilometres and located onshore in the island of Djerba in the southern Gulf of Gabes, was discovered in 1988, achieving a peak production of 500 bopd in 1994.

The ROB-1 well encountered two hydrocarbon-bearing reservoirs in the Cretaceous Upper Meloussi Sandstone formation. Only two wells have been drilled in Robbana since discovery, ROB-1 which is still in production and ROB-2 which is temporarily abandoned.

Robbana currently produces approximately 25 barrels of oil per day from ROB-1, having previously produced approximately 50 barrels of oil per day prior to an unsuccessful well intervention.

Zenith Energy Ltd. is an international oil and gas production company whose development strategy is to identify and rapidly seize value-accretive hydrocarbon production opportunities in the oil and gas sector, specifically in Africa.
Date Published: 03/05/2021