Legal Proceedings Report • Jul 3, 2023
Legal Proceedings Report
Open in ViewerOpens in native device viewer
Zenith Energy Ltd. (LSE: ZEN; OSE: ZENA), the interna;onal energy produc;on and development company, is pleased to announce that its fully owned subsidiary, Anglo African Oil & Gas Congo S.A.U ("AAOGC"), has been awarded a payment of compensatory damages by the Paris Commercial Court (the "Court") in its claim against SMP Energies ( hereaLer "SMP", formerly Société de Maintenance Pétrolière – SMP) the rig contractor that performed drilling services in wells TLP-103 and TLP-103C of the Tilapia oilfield during 2018-2019.
In the decision, the Court rejected SMP's request for a stay of proceedings in France due to new proceedings having been ini;ated in the Republic of the Congo, sta;ng that SMP's request contained "all the characteris4cs of a dilatory request", and ordered it to pay an amount of EUR 30,000 to AAOGC by way of compensatory damages. The Court decision is immediately enforceable.
The Court has scheduled the next procedural date as September 29, 2023.
On July 15, 2019, AIM quoted Anglo African Oil & Gas ("AAOG"), the previous owner of AAOGC prior to its acquisition by Zenith, announced that AAOGC had initiated a legal claim (the "Claim") in the Paris Commercial Court against SMP following a series of significant performance failures by the SMP 102 rig (the "Rig") during drilling activities in wells TLP-103 and TLP-103C, and the refusal of SMP to engage in negotiations to cover the significant cost overruns that had been incurred by AAOGC as a result.
On February 17, 2023, Zenith announced that it had increased the claimed amount for SMP's failures during drilling activities to US\$9 million in consideration of the significant commercial damages suffered by AAOGC, specifically the impossibility to begin production activitiesfrom the Tilapia oilfield, as a direct result.
The Company believes that the Claim launched by AAOGC has merit, especially because of the significant evidence collected at the ;me to substan;ate its posi;on and has since intensified its legal ac;vi;es in support of the Claim by commissioning third-party expert reports.
A final decision in respect of the Claim is expected prior to the close of Zenith's next financial year, March 31, 2024.
"We are pleased that the Court has rejected the latest a=empt by SMP to delay proceedings.
AAOGC has submi=ed third-party expert reports for considera4on by the Court which have, to date, not been engaged with or countered by SMP.
The Court's decision has symbolic value for Zenith insofar as it suggests that our steady and resilient approach to our African opera4ons eventually does bear fruit.
We are aware that the significant delays incurred by some of our initiatives in Africa have demoralised some of our investors.
However, as a management team, our confidence in Zenith's strategy remains unchanged and we are fully committed to achieving the Company's successful development."
| Zenith Energy Ltd | |
|---|---|
| Andrea Cattaneo, Chief Executive Officer | Tel: +1 (587) 315 1279 |
| E: [email protected] | |
| BlytheRay - Financial PR/IR |
Tel: +44 207 138 3204 |
| Tim Blythe, Megan Ray, Matt Bowld |
E: [email protected] |
| Allenby Capital Limited - Financial Adviser |
Tel: + 44 (0) 203 328 5656 |
| Nick Harriss | |
| Daniel Dearden-Williams | |
| Miriad Limited - Media Enquiries |
Tel: +44 7867527659 |
| Zak Mir | E: [email protected] |
Zenith Energy Ltd. is a revenue generating, independent energy company with production, exploration and development assets in Africa, the Middle East and Europe, including electricity generation in Italy. The Company is listed on the London Stock Exchange Main Market (LSE: ZEN) and the Euronext Growth of the Oslo Stock Exchange (OSE: ZENA).
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
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.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.