LONDON, UK: Zenith Energy Netherlands B.V. has entered right into a share buy settlement (SPA) with OMV Exploration and Production GmbH (OMV) to buy 100% of the excellent share capital of OMV Yemen.
OMV Yemen comprises of Yemen Block S 2 Exploration GmbH, OMV Jardan Block three Upstream GmbH and OMV Block 70 Upstream GmbH, that are all companies incorporated and existing under the legal guidelines of Austria. Zenith Energy Ltd. (LSE: ZEN) holds a 49% curiosity in Zenith Energy Netherlands B.V.
Under the phrases of the SPA, Zenith Netherlands will buy 100% of OMV’s shares in OMV Yemen at completion for a complete consideration of US$ 21.619 million. Zenith Netherlands has paid a deposit of US$ 4.324 million, which shall be credited by the Seller to Zenith Netherlands as a half of the Purchase Price upon completion.
OMV Yemen is one of many largest oil producers within the nation with a extremely potential portfolio together with a balance of immediate production, in addition to a balance of short and long-term growth opportunities.
Andrea Cattaneo, Chief Executive of Zenith, said: “The acquisition of OMV Yemen represents a really significant milestone for Zenith Energy.
The existing manufacturing from the asset and, extra importantly, the near-term future oil and pure gas manufacturing indicated by the size of the reserves, place Zenith on an extraordinarily thrilling pure growth trajectory.”
Significant related gas volumes have been recorded with oil manufacturing throughout OMV Yemen’s portfolio giving proof of considerable pure gas manufacturing potential from S-2, Block 3, and Block 70.
A gas discovery has been made in Block 3, representing a main alternative for the monetisation of OMV’s Yemen pure gas production, all of which is currently flared.
Several gas manufacturing offtake choices are already under dialogue together with the possibility of a connection being made to a native energy station or to Yemen LNG.
Zenith may additionally discover the development of a ‘Gas-to-Power'(“GTP”) plant, as efficiently carried out in Italy, to commercialize gas manufacturing and present additional electrical energy present to the native economy.
Gross total recoverable gas volumes have been estimated by OMV, throughout the OMV Yemen portfolio, to be roughly 571 BSCF.
“Finally, we glance ahead with enthusiasm to establishing ourselves in Yemen and contributing to the prosperity of the native economy. It is our perception that the nation has extraordinary financial potential, particularly in respect of its oil and gas industry, and we will search to maximise our relationship with the native authorities to obtain our development objectives,” Andrea Cattaneo said.