Tuesday, 02 December 2014 09:26 AM
Calgary, Alberta / ACCESSWIRE / December 2, 2014 / Zenith Energy Ltd. (the "Company") (TSX VENTURE: ZEE) is pleased to announce an increase in production for its wholly-owned Argentinean subsidiary, Petrolera Patagonia srl. Management reports that cumulative monthly production from the Don Alberto and Don Ernesto fields has reached a two year high, with 4938 barrels (approximately 165 bopd) produced in November. The workover program announced during September is directly responsible for the improvement. All operations are being conducted directly by Zenith group employees to ensure best practices and maximize the quality of execution while keeping expenses within the set budget.
The Company is confident in the stabilized flow rates based on the basin's historical production profile. During December, the workover program is anticipated to bring online several additional wells as new pumps are installed. Production gains from the current workover program have enabled management to upwardly revise the annual production guidance for 2015 in Argentina to 60,000 barrels, a conservatively projected 17% growth in production over expected 2014 cumulative production of 51,000 barrels.
Andrea Cattaneo, President and CEO of Zenith, comments, "In light of the immediate impact of our workover program, management is confident in continuing its operation beyond the initial six month term."
About Zenith Energy Ltd.
Zenith focuses on near term producing properties that can be further optimized with its engineering and technical experience. To maximize shareholder value, Zenith targets acquisitions of production opportunities that offer strong logistics and close proximity to refineries and pipelines. Zenith's management and directors have extensive international and governmental experience and possess the technical knowledge to execute this strategy.
Zenith management is actively pursuing onshore fields with low acquisition costs from national or senior companies that have chosen to allocate their capital to unlock non-traditional resources with typically higher costs. Zenith's acquisition costs are further minimized by a strategy of reinvesting a portion of future cash flows back to remediation and capital improvements typically forgone on older fields. Combined with the use of modern technological practices and the Company's technical expertise, management continues to demonstrate the capacity to increase production and optimize remaining reserves.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward-looking statements and information concerning (i) the Company's goal of doubling its production (ii) increasing the Argentinian production to approximately 280 barrels per day and (iii) that the workover program will bring several additional wells into production. The forward-looking statements and information are based on certain key expectations and assumptions made by Zenith, including the ability to execute its strategy and realize its growth opportunities including its ability to raise financing needed to execute its plans. Although Zenith believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because Zenith can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties, include, but are not limited to, Zenith being unable to obtain additional financing or other resources to realize its growth opportunities. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. Zenith undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
For further information, please contact:
Jose Ramon Lopez Portillo Andrea Cattaneo
Chairman of the Board CEO & President
Email: [email protected]
Telephone: (403) 938-8154
Telefax: (403) 775-4474
This press release is not to be distributed to U.S. newswire services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S. securities law.
SOURCE: Zenith Energy Ltd.