Zenith Energy

Share Issue/Capital Change • Jun 30, 2017

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RNS Number : 8243J

Zenith Energy Ltd

30 June 2017

ZENITH ENERGY LTD.

("Zenith" or the "Company")

Reserve Update & Exercise of Warrants

Calgary, Alberta, June 30, 2017, Zenith Energy Ltd., ("Zenith" or the "Company") (LSE: ZEN; TSX.V: ZEE) the dual listed international energy production company, is pleased to announce that:

1.    ZENITH FILES YEAR-END INDEPENDENT RESERVES EVALUATION

Zenith has filed its year-end independent evaluation of reserves for the year ending March 31, 2017, prepared in accordance with National Instrument 51-101, on SEDAR.

The following is a summary of the oil and natural gas reserves and the value of future net revenue of Zenith Energy Ltd. (the "Company") as evaluated by Chapman Petroleum Engineering Ltd., Calgary, Alberta, Canada as at March 31, 2017, and dated June 26, 2017 (the "Chapman Report").  Chapman Petroleum Engineering Ltd. is an independent qualified reserves evaluator and auditor.

These results were filed on SEDAR on June 27, 2017 in accordance with TSX rules.

All evaluations of future revenue are after the deduction of future income tax expenses, unless otherwise noted in the tables, royalties, development costs, production costs and well abandonment costs but before consideration of indirect costs such as administrative, overhead and other miscellaneous expenses.  The estimated future net revenue contained in the following tables does not necessarily represent the fair market value of the Company's reserves. There is no assurance that the forecast price and cost assumptions contained in the Chapman Report will be attained and variances could be material. Other assumptions and qualifications relating to costs and other matters are included in the Chapman Report. The recovery and reserves estimates on the Company's properties described herein are estimates only. The actual reserves on the Company's properties may be greater or less than those calculated.

sUMMARY OF oil and gas reserves

BASED ON forecast prices and costs

AS AT MArch 31, 2017

				Company Reserves(1)
AZERBAIJAN				Light and Medium Oil				Heavy Oil				Natural Gas(9)				Natural Gas Liquids
				Gross		Net		Gross		Net		Gross		Net		Gross		Net
Reserves Category				MSTB		MSTB		MSTB		MSTB		MMscf		MMscf		Mbbl		Mbbl
PROVED
Developed Producing(2)(4)				424		424		0		0		0		0		0		0
Developed Non-Producing(2)(5)				0		0		0		0		0		0		0		0
Undeveloped(2)(6)				3,741		3,741		0		0		0		0		0		0
TOTAL PROVED(2)				4,166		4,166		0		0		0		0		0		0
TOTAL PROBABLE(3)				27,938		27,938		0		0		0		0		0		0
TOTAL PROVED + PROBABLE(2)(3)				32,103		32,103		0		0		0		0		0		0

				Company Reserves(1)
ITALY				Light and Medium Oil				Heavy Oil				Natural Gas(9)				Natural Gas Liquids
				Gross		Net		Gross		Net		Gross		Net		Gross		Net
Reserves Category				MSTB		MSTB		MSTB		MSTB		MMscf		MMscf		Mbbl		Mbbl
PROVED
Developed Producing(2)(4)				0		0		0		0		1,300		1,300		18		18
Developed Non-Producing(2)(5)				0		0		0		0		118		118		0		0
Undeveloped(2)(6)				0		0		0		0		0		0		0		0
TOTAL PROVED(2)				0		0		0		0		1,148		1,418		18		18
TOTAL PROBABLE(3)				0		0		0		0		13,948		13,948		223		223
TOTAL PROVED + PROBABLE(2)(3)				0		0		0		0		15,366		15,366		241		241

Notes:

1.     "Gross Reserves" are the Company's working interest (operating or non-operating) share before deducting of royalties and without including any royalty interests of the Company.  "Net Reserves" are the Company's working interest (operating or non-operating) share after deduction of royalty obligations, plus the Company's royalty interests in reserves.

2.     "Proved" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable.  It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.

3.     "Probable" reserves are those additional reserves that are less certain to be recovered than proved reserves.  It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.

4.     "Developed Producing" reserves are those reserves that are expected to be recovered from completion intervals open at the time of the estimate.  These reserves may be currently producing or, if shut-in, they must have previously been on production, and the date of resumption of production must be known with reasonable certainty.

5.     "Developed Non-Producing" reserves are those reserves that either have not been on production, or have previously been on production, but are shut in, and the date of resumption of production is unknown.

6.     "Undeveloped" reserves are those reserves expected to be recovered from know accumulations where a significant expenditure (for example, when compared to the cost of drilling a well) is required to render them capable of production.  They must fully meet the requirements of the reserves classification (proved, probable, possible) to which they are assigned.

These results can be viewed online at www.sedar.com and will also shortly be available for review at www.zenithenergy.ca

2.    ISSUE AND ADMISSION OF NEW SHARES

An investor in the Company has exercised warrants to acquire 1,019,250 new common shares of no par value (the "Warrant Shares") in the capital of the Company.  The exercise price of the warrant was C$0.15 per share, and the total consideration received C$152,887.50 (approximately £90,800).

The Warrant Shares were issued on June 29, 2017 by the registrars in Canada.

An application will be made for the Warrant Shares to be admitted to trading on the Main Market of the London Stock Exchange, and for them to be listed on the Standard Segment of the UK Official List, both with effect from July 7, 2017 ("Admission").

Total Voting Rights

Following Admission, the Company will have 117,596,480 Common Shares in issue and admitted to trading on the Main Market of the London Stock Exchange and the Toronto Stock Exchange Venture Exchange. The above figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules. 

For further information, please contact:

José Ramón López-Portillo

Chairman

Andrea Cattaneo

CEO & President

Email:              info@zenithenergy.ca

Telephone:     +1 (587) 315 9031

Telefax:           +1 (403) 775-4474

Allenby Capital Limited - (Joint Broker)

Nick Harriss

Nick Athanas

Richard Short

Telephone: + 44 (0) 203 328 5656

Optiva Securities - (Joint Broker)

Christian Dennis

Telephone: + 44 (0) 203 137 1903

This information is provided by RNS

The company news service from the London Stock Exchange

END

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