Zenith Energy, the listed international energy production and development company, has provided an update regarding the sale of its fully owned ZEN-260 onshore drilling rig ('ZEN-260').
Background
The Company acquired the ZEN-260 in September 2018 for use in its drilling operations in the Republic of Azerbaijan. The ZEN-260 is a 1,200 hp mechanical IDECO rig equipped with a TDS-350 BOWEN top drive system. Following the termination of activities in Azerbaijan, the Company had planned to deploy the ZEN-260 for drilling operations in Africa, specifically in the Republic of Tunisia, after the various acquisitions announced during 2020 and 2021.
For reasons that were not explained by the Tunisian authorities, the importation application for the ZEN-260 into Tunisia, made by one of the Company’s fully owned subsidiaries, was denied.
Offers
The Company is currently finalising negotiations for the sale of the ZEN-260, having received two separate offers from prospective buyers valued at approximately US$2 million. Zenith expects to complete the sale and receive payment by the end of 2025.
Andrea Cattaneo, Chief Executive Officer, commented:
'Following our exit from Azerbaijan, our plan was to deploy the ZEN-260 in Tunisia, where the newly acquired oil production licences offered significant development and exploration potential and were ready for drilling. As our investors are aware, history took a different course, and the importation of the ZEN-260 into Tunisia was rejected by the Tunisian authorities.
As a result, and as previously announced, this now-legacy equipment was put up for sale and is currently being divested to provide additional working capital for the Company. The sale will further strengthen our cash position, as well as provide additional capital for our ongoing business development activities in Italy.'
Source: Zenith Energy
