03.12.2019 08:00:00: Acquisition of Coro Energy Italian Assets


December 3, 2019

ZENITH ENERGY LTD.

("Zenith" or the "Company")

Acquisition of Coro Energy Italian Assets

Zenith Energy Ltd., ("Zenith" or the "Company"), (LSE: ZEN ; TSX.V: ZEE ; OSE:
ZENA-ME), the international oil & gas production company, is delighted to
announce that it has signed a share purchase agreement ("SPA") with AIM quoted
Coro Energy Plc ("Coro") for the acquisition of Coro's entire natural gas
production and exploration portfolio in Italy ("Acquisition").

Acquisition Highlights

o The Acquisition will add material production to the Company's existing Italian
operations, resulting in the creation of a significantly enlarged, revenue
generating, low-risk production and exploration portfolio.

o Coro's Italian portfolio consists of 100% working interests in four producing
natural gas concessions: Sillaro, Rapagnano, Casa Tiberi and Bezzecca, as well
as one production concession which is development ready, S. Alberto. Two
exploration concessions, Laura and Santa Maria Goretti complete the portfolio.

o The Acquisition will enable Zenith to increase gross production revenue in
Italy by approximately 410% with an expected yearly gross revenue of
approximately EUR3.6 million (equivalent to approximately £3.08 million ; NOK 36.5
million or CAD$5.3 million).

o Zenith will become one of the largest natural gas production operators in
Italy with a total cumulative production from its Italian portfolio of
approximately 55,000 standard cubic meters per day ("scm/day") (approximately
322 barrels of oil equivalent "BOE" per day).

o The Acquisition assets generated EUR1.53 million in revenue (equivalent to
approximately £1.31 million ; NOK15.575 million or CAD$2.26 million) in the first
six months of 2019 at an average cumulative production rate of 40,000 scm/ day
(approximately 234 BOE per day).

o Independently assessed 2P reserves of 7.5 BCF as of January 1, 2018 (CGG
Services (UK) Limited CPR - Reference No: BP512 - dated March 1, 2018).

o Production is expected to reach 113,000 scm/day following the completion of a
series of targeted interventions planned during the next 6-9 months for which
all necessary approvals have already been obtained.



o Consolidation of Italian portfolio will strengthen Zenith's credentials as a
natural gas producer to support the acquisition of additional natural gas
production assets in other regions, including Norway.

o Enhancement of Italian operational team with the addition of highly
experienced technical management fully familiar with the domestic Italian energy
production environment and the potential future productivity to be achieved from
the Acquisition concessions.

o Zenith's significantly enhanced natural gas production activities in Italy are
expected to give the Company increased relevance in the context of
Italy-Azerbaijan natural gas industry cooperation in view of the imminent
activation of the TAP (Trans Adriatic Pipeline).


Zenith and Coro entered into a conditional share purchase agreement in respect
of the purchase of the entire issued capital of Coro Europe Limited by Zenith on
December 2, 2019. The consideration for the Acquisition is payable in common
shares in Zenith and is divided into two parts.

An initial £402,000 is payable at completion in common shares in the capital of
Zenith ("Consideration Shares") at a price of £0.06 (equivalent to approximately
NOK0.71 or CAD$0.10) per Consideration Share with a six-month hold period.

The second part of the consideration, up to £3.5 million, is also payable in
shares at the closing price of Zenith shares on the issue date plus 40 per cent.
of such closing price only in the event that production of natural gas extracted
and recovered from the Acquisition's Italian assets exceeds an average of
100,000 scm/day over a period of four successive months (equivalent to
approximately 590 BOE per day).

Completion of the Acquisition is conditional, inter alia, on the approval of
sale by the Italian Ministry of Economic Development.

The Acquisition is also subject to final regulatory approval from the TSX
Venture Exchange.

Andrea Cattaneo, Chief Executive Officer, commented:

"We are delighted to have signed this exciting SPA with Coro Energy. Upon
completion of the acquisition, Zenith will have significantly enhanced its
Italian operations with a material increase in revenue generation and natural
gas production making it one of the leading natural gas producers in Italy.

There are a number of opportunities to increase production from current levels
in the acquired assets through targeted relatively low-risk well interventions,
also present in our existing Italian portfolio. Our newly enhanced technical
team and financial resources will enable Zenith to apply renewed focus on its
Italian portfolio.
We look forward to updating the market in due course regarding progress."