Zenith Energy Begins Due Diligence On USD7 Million Indonesia Asset Buy

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LONDON (Alliance News) - Zenith Energy Ltd said Monday it had begun the process of due diligence on its proposed USD6.6 million acquisition of an oil production asset in Indonesia announced late last month.

The period in which Zenith much complete due diligence has been extended to May 15, from April 30 initially.

After that, Zenith has 15 days to choose to exercise the binding option to complete the USD6.6 million acquisition. If Zenith chooses to exercise the options, it will pay 50% within seven days with the remainder by the end of August.

Zenith will provide an update once the due diligence process has completed. The company emphasises that there is no certainty that the deal will be completed.

At the time of the original announcement of the proposed acquisition, Zenith said the site composed two onshore blocks covering 65 square kilometres. Existing production at the site was in excess of 1,000 barrels of oil per day, transported by pipeline directly into the national oil sales system with a reported all-in average production cost of USD18 per barrel.

Shares in Zenith were 2.3% higher at 6.60 pence on Monday.

By Ahren Lester; [email protected]

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