Zenith Energy said that it is in advanced negotiations with an undisclosed party for securing a rig to carry out drilling operations in the Republic of the Congo.
In December 2019, the Canada-based oil and gas company signed a conditional share purchase agreement to acquire a stake of 80% in Anglo African Oil & Congo from Anglo African Oil & Gas.
Anglo African Oil & Congo holds a 56% operating stake in the offshore Tilapia oilfield in the Republic of the Congo. The remaining 44% stake in the offshore oilfield is held by the state-owned company Société Nationale des Pétroles du Congo (SNPC).
The Tilapia oilfield was drilled from onshore, which removes the necessity of having any offshore drilling equipment.
The closing of the SPA is subject to meeting of certain regulatory requirements in the African country including consent from the Minister of Hydrocarbons.
Zenith Energy identifies two rigs for its drilling campaign
Zenith Energy said that it had identified two drilling rigs that are suitable to be used at the license based on their proximity. The company said that using either of them will considerably cut down mobilisation costs.
The Canadian firm confirmed that it is in talks to contract one of the two drilling rigs, which is being used currently by an international oil company in a nearby oilfield. The drilling rig in question is likely to be available during the next 30 days.
Zenith Energy expects to begin drilling operations during April 2020 after closing of the deal with Anglo African Oil & Gas.
Zenith Energy CEO Andrea Cattaneo said: “It is the Board’s view that there is significant potential for near-term value creation in Zenith’s equity due to a number of business development activities we are pursuing, foremost amongst which is Completion of the AAOG Congo acquisition and the planned drilling activities in the Mengo and Djeno horizons.
“Management and I remain fully focussed on achieving Completion, having recently met extensively with all the relevant authorities in the Republic of the Congo.
“As evidenced by our advanced negotiations with a local drilling contractor, we intend to commence operational activities without delay once Completion is achieved.”
