Zenith Energy has announced a conditional sale and purchase agreement with China National Petroleum Corporation International (CNPCI) Tunisia Ltd. for the acquisition of working interests in the North Kairouan permit and Sidi El Kilani concession.
Valued at $300,000, the acquisition would expand the company’s working interest in the Sidi El Kilani concession, comprising the Sidi El Kilani oilfield, to 45%.
“We are delighted to have concluded this transaction with CNPCI. The Board of Directors is highly satisfied with the favorable commercial terms agreed in relation to Tunisian Acquisition,” said Andrea Cattaneo, Chief Executive Officer of Zenith Energy. “Upon completion, the Company will have material daily production revenue and an exciting future in developing the Sidi El Kilani asset in partnership with Entreprise Tunisienne d’Activités Pétrolières, the state oil company.”
The acquisition follows Zenith’s previous conditional sale and purchase agreement to acquire the working interest of KUFPEC (Tunisia) Limited in the same two concessions in April.
“We are also very pleased to have increased our presence in Tunisia; a safe, democratic jurisdiction with a long-established history of successful oil and gas production activities for independent companies such as Zenith,” said Cattaneo. “The Company has developed a very constructive relationship with CNPCI, and we look forward to exploring further opportunities for mutual cooperation in due course.”