ZENITH ENERGY LTD. March 12, 2024 ZENITH ENERGY LTD. ("Zenith" or the "Company") Update on Italian Energy Production PortfolioZenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; OSE: ZENA; OTCQB: ZENAF), the listed international energy production and development company, is pleased to announce the full completion of an acquisition inItaly , as well as providing an update on its Italian energy production portfolio. Acquisition of additional stake in Sant'Andrea natural gas production concession ("Sant'Andrea") The Company is pleased to announce that it has acquired, and received the necessary final regulatory approvals, for the acquisition of an additional 10% interest in Sant'Andrea (the "Acquisition") from Petrorep Italiana S.R.L. ("Petrorep"). Following completion of the Acquisition, Zenith's 40% interest in Sant'Andrea has increased to 50%. As previously announced, the Company plans to reactivate the S. Antonio-1 well located in Sant'Andrea, with an expected initial production rate of approximately 1,500 cubic metres of natural gas per day. Under the terms of the acquisition, Petrorep has paid Zenith's Italian subsidiary the amount ofEUR 248,000 (approximatelyGBP 212,000 orNOK 2,850,000 ) to cover its share of future plugging and abandonment costs calculated pro rata based on its participation in Sant'Andrea. The Company is confident that production from Sant'Andrea will commence inOctober 2024 . Zenith's partners in Sant'Andrea have communicated that they do not intend to fund the costs associated with its reactivation. Zenith will therefore receive full entitlement to the production revenue to be received from Sant'Andrea, as well as bearing the full costs associated with the reactivation of production, estimated in the amount ofEUR 20,000 . Italian Electricity Production - Torrente Cigno Concession ("Torrente Cigno") The Company continues to generate electricity at the Torrente Cigno with an average monthly production of approximately 950 megawatt hours ("MWh"). Electricity prices averaged approximatelyEUR 96 per MWh duringJanuary 2024 and averaged approximatelyEUR 84 during the month ofFebruary 2024 , resulting in cumulative net revenues of approximatelyEUR 171,000 for the period. Zenith's current net production costs remain fixed at approximatelyEUR 35,000 per month.Andrea Cattaneo , Chief Executive Officer, commented: "We are pleased to have increased our participation in Sant'Andrea which we hope to bring to production later this year, creating an additional revenue stream for the Company. I am pleased to report that the Company is currently evaluating a potentially significant additional acquisition inItaly , and I look forward to providing updates in due course if negotiations prove successful." Further Information:Zenith Energy Ltd Andrea Cattaneo , Chief Executive Officer Tel: +1 (587) 315 1279 E: info@zenithenergy.caAllenby Capital Limited - Financial AdviserNick Harriss Daniel Dearden-Williams Tel: + 44 (0) 203 328 5656 Notes to Editors:Zenith Energy Ltd. is a revenue generating, independent energy company with energy production, exploration and development assets inNorth Africa , the US andEurope . The Company is listed on the London Stock Exchange Main Market (LSE: ZEN), the Euronext Growth of theOslo Stock Exchange (OSE: ZENA) and the Venture Market of the OTCQB (OTCQB: ZENAF). Zenith's strategic focus is on pursuing development opportunities through the development of proven revenue generating energy production assets, as well as low-risk exploration activities in assets with existing production. For more information, please visit: www.zenithenergy.ca Twitter: @zenithenergyltd LinkedIn: https://bit.ly/3A5PRJb Market Abuse Regulation (MAR) Disclosure The information included in this announcement is defined as inside information pursuant to MAR article 7 and is publicly disclosed in accordance with MAR article 17 and section 5 -12 of the Norwegian Securities Trading Act. The announcement is made by the contact person.
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