News listings

energy-pedia farmouts/divestments

USA flagUSA

South America / GoM >>> USA

US: Zenith Energy enters into first agreement for USA acquisition campaign


02 Jun 2023

Photo - see caption

Zenith Energy has entered into an agreement with Stateside Energy LLC, a company registered under the laws of the State of Oklahoma, United States of America, to acquire and operate a portfolio of oil production and development licences in Oklahoma, as well as certain other States in the USA.

Key Terms

  • Stateside is an oil and gas operator with a portfolio of seven oil wells in the State of Oklahoma.
  • Under the Agreement, Zenith will incorporate a wholly owned special purpose vehicle in the United States of America for the purpose of acquiring oil wells and licence blocks in the State of Oklahoma and certain other States in USA (the 'Newco').
  • Stateside will make available its personnel in Oklahoma for the purpose of assisting the business development of Newco.
  • Zenith will consider providing Stateside with the following incentive bonus structure based upon the Newco reaching the following incremental average production targets: 75, 125, 175 and 225 barrels of oil per day (the 'Milestones').
  • Upon the achievement of each Milestone Zenith will consider issuing Stateside certain amounts payable by way of issuing equity securities (the 'Incentive Bonus Payments').
  • Stateside agrees to sell its oil production wells to Newco, subject to the completion of a satisfactory due diligence by Zenith, for a nominal consideration.
  • It is planned that the Newco will negotiate the acquisition of approximately 70 oil production wells located on property leases totalling approximately 3,200 acres located in the State of Oklahoma for sale by a third-party identified by Stateside (the 'Potential Vendor').
  • The Potential Vendor has indicated it also intends to sell certain oilfield service equipment including, inter alia, a pulling unit and a tank truck, for an amount to be agreed.
  • Zenith has agreed to invest approximately US$2 million, subject to the completion of a satisfactory due diligence, for the acquisition of Targets to be introduced by Stateside.   

Andrea Cattaneo, Chief Executive Officer, commented:

'We are pleased to formally begin our expansion in the USA by way of the Agreement with Stateside. The advantages of operating in North America are readily apparent, and primarily include the speed of execution for transactions, with the resulting delivery of potential immediate oil production to Zenith, and the relatively conspicuous lack of bureaucratic delays and other detrimental impediments to corporate development seen elsewhere.

The Company is currently negotiating the potential acquisition of various oil production assets with significant development potential across the USA. We look forward with enthusiasm to potentially completing these in an expeditious manner, subject to rigorous due diligence, by leveraging one of our strengths: deal-making.'

Original article link

Source: Zenith Energy





Bookmark and Share


A global information service for upstream oil and gas opportunities - divestitures, farmins and farmouts and licensing rounds.


Subscriber Only Deals

Current Deals

Current Upstream Deals: 244

Completed Deals

Completed Upstream Deals: 6554

Company Profiles

Current Company Profiles: 2911

Corporate Activity

Current Corporate Activity articles: 4128

Companies Looking

Current number of articles: 466

Company Sales

Current Company Sales articles:1652

Geostudies

Current Geostudies articles: 963

How to subscribe

energy-pedia Jobs

RSS Feed Widget
See all jobs...


energy-pedia Databank

The energy-pedia databank contains links to information on the world financial and energy markets, including share prices, oil and gas prices and the global stock exchanges. Read more...



energy-pedia Glossary

A list of commonly used terms in the oil and gas industry. Read more...

Subscribe

Subscribe to the FREE
energy-pedia Daily Newsletter
Subscribe

Telos NRG
Merlin
Rose & Assocs
Government of South Australia
Borchwix
Syntillica
energy365
Union Jack Oil 149
OPC
Bayphase
About energy-pedia

energy-pedia news is a FREE news service written and edited by E and P professionals for E and P professionals.

We don't just report the news, we give you the technical background as well, with additional information derived from our unique energy-pedia opportunities service.
Contact us

energy365 Ltd

238 High Street
London Colney
St Albans
UNITED KINGDOM

Tel: +44(0)1727 822675

Email: info@energy-pedia.com