June 16, 2020

ZENITH ENERGY LTD.   
 
("Zenith" or the "Company")

Participation in Nigeria’s 2020 Marginal Field Bid Round

Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; OSE: ZENA-ME), the
listed international oil & gas production company focused on pursuing African
development opportunities, is pleased to announce its participation, in the
capacity of technical and financial partner to a Nigerian registered energy
company, in the 2020 bid round for marginal oil and gas fields organised by the
Nigerian Department of Petroleum Resources (“DPR”). 

Overview regarding the 2020 Nigerian Marginal Fields Bidding Round 

On June 1, 2020, the DPR, on behalf of the Federal Government of Nigeria,
announced the launch of a new a bid round for a total of 57 marginal fields
covering a selection of onshore, swamp and shallow-offshore fields (“2020 Bid
Round”). 

The overarching goal of the 2020 Bid Round, following a similar initiative
completed successfully in 2001, is to stimulate local commercial participation
in the Nigerian petroleum industry and thereby create opportunities for domestic
economic development. 

Further key objectives of the 2020 Bid Round include the following: 

•	Growing production capacity by increasing the scope of participation in
Nigeria’s petroleum sector, through diversification of resources and inflow of
investments;

•	Increasing oil and gas reserves through aggressive exploration and development
efforts 

As part of the 2020 Bid Round guiding principles, there is an expectation that
the development of these marginal acreages will engender various opportunities
to attract international capital and technological expertise in partnership with
local Nigerian companies.  

Under the guidelines provided by the DPR for the 2020 Bid Round a marginal field
(“Marginal Field”) is defined as any field that has been discovered and has been
left unattended for a period of not less than ten (10) years from the date of
first recovery, or any such field as the President of the Nigerian Federal
Government may, from time to time, identify as a Marginal Field. 

The 2020 Bid Round is a process comprised of various stages commencing with
pre-qualification of the companies with relevant technical and financial
capabilities and duly registered in Nigeria to carry out Exploration and
Production by DPR, followed by submission of a commercial and technical bid for
evaluation under a number of criteria by the Honourable Minister of Petroleum
Resources (“HMPR”), and concluding itself with the potential assignment of a
Marginal Field once all necessary formalities have taken place and final
approval from the President of Nigeria, pursuant to the Petroleum Act (1969), is
obtained. 





Non-equity development funding 

The Company can confirm that it is progressing in negotiations, first announced
to the market on March 2, 2020, with an international oil major in order to
provide funding for Zenith’s development objectives in Africa in the form of an
offtake agreement. 

Further, the Company has also entered into negotiations with two pan-African
financial institutions for a loan facility that will be used to fund the
acquisition and development of Zenith’s growing portfolio in West Africa.  


Andrea Cattaneo, Chief Executive Officer, commented:

“Zenith has had ambitions to establish a presence in Nigeria for a number of
years. The launching of the 2020 Bid Round for Marginal Fields, which has not
happened since 2001, represents an exceptional opportunity for the Company and
its Nigerian partner to acquire an underdeveloped, potentially transformational
oil production and exploration asset in the current low oil price environment.  

Among the 57 Marginal Fields included in the 2020 Bid Round, there are specific
assets which are particularly appealing to Zenith, especially on account of
their compatibility with our development objectives. Indeed, the near-term
production potential of certain assets is expected to facilitate the achievement
of financing agreements to support our expansion. We expect the potential award
of a Marginal Field, following the 2020 Bid Round process, to happen within 6
months of bid submission. 

I look forward to updating the market in due course regarding our very exciting
progress in Africa.”   



Further Information:
 
Zenith Energy Ltd. 	 
Andrea Cattaneo, Chief Executive Officer	Tel: +1 (587) 315 9031
 	E-mail: info@zenithenergy.ca
 
Notes to Editors: 
Zenith Energy Ltd. is an international oil and gas production company, listed on
the London Stock Exchange (LSE:ZEN) and the Merkur Market of the Oslo Stock
Exchange (ZENA:ME).
Zenith's development strategy is to identify and rapidly seize value-accretive
hydrocarbon production opportunities in the onshore oil & gas sector,
specifically in Africa. The Company's board of directors and senior management
team have the experience and technical expertise to develop the Company
successfully.