Development of Italian Gas Production Portfolio

02 Dec 2022 12:05 CET

December 2, 2022

ZENITH ENERGY LTD.

("Zenith" or the "Company")

Development of Italian Gas Production Portfolio

Zenith Energy Ltd.(LSE: ZEN; OSE: ZENA), the energy company with proven revenue
generating production, exploration and development assets in Africa and Europe
is pleased to announce its plans to reactivate certain natural gas production
concessions within its Italian portfolio.

Highlights:

• Initial production at the Masseria Grottavecchia Concession (“MGC”) is
expected to be approximately 5,000-10,000 cubic metres of natural gas per day,
with expected monthly production revenues of between approximately EUR 40,000 –
EUR 80,000.

• At the San Teodoro Concession (“STC”), Zenith intends to re-complete the San
Teodoro 1 Dir A (“ST-1D”) well, to achieve commercial production from two
previously identified gas bearing formations. If successful, production of up to
10,000 cubic meters of natural gas is expected, with revenues of approximately
EUR 100,000 per month depending on production.

• Production at the Sant’Andrea concession is now expected to commence during Q1
of 2023

The Company is also pleased to announce that the Ministry of Environment and
Energy Security (Ministero dell'ambiente e della sicurezza energetica) has
conducted a comprehensive periodic review of the technical and financial
capabilities of Zenith’s Italian subsidiary, confirming its status as a company
meeting the required standards to operate in Italy.

Masseria Grottavecchia

The Masseria Grottavecchia Concession covers approximately 53 square kilometres
and is located between the Molise and Puglia regions of Southern Italy. The
production concession was first granted in 1988 following drilling of a well
named ‘Traetta’ that was successfully drilled in 1986, but never brought into
production.

In view of the significantly improved natural gas pricing outlook and the
increased revenue generation from its Italian energy production operations, the
Company intends to make infrastructural investments for an amount of
approximately EUR 900,000 to construct a natural gas treatment plant.

Initial production from MGC, which has never entered commercial production due
to the lack of the required infrastructure, is expected to be approximately
5,000 – 10,000 cubic metres of natural gas per day with monthly production
revenue expected in the region of approximately EUR 40,000 – EUR 80,000.

Zenith holds a 20% working interest in MGC via its Italian subsidiary and is the
operator. In view of the Company’s intended investment, all future production
revenue to be obtained will be to Zenith’s sole entitlement. MGC is scheduled to
expire in 2028 with the possibility of an extension being granted.


San Teodoro

The San Teodoro Concession covers approximately 60 square kilometres and is
situated in the Basilicata region of Southern Italy. Zenith holds a 100%
working interest in STC by way of its Italian subsidiary. It is not producing
and is scheduled to expire in 2029 with the possibility of an extension being
granted.

The production concession was first granted in 1989 following drilling of a well
named San Teodoro 1 (“ST-1”) that was drilled in 1988.

A sidetrack to ST-1 was drilled in 2003, named San Teodoro 1 Dir A (“ST-1D”),
however, the well was not successfully completed and production was not
achieved.

Zenith intends to re-complete ST-1D with the goal of achieving commercial
production from two previously identified gas bearing formations.

A total of approximately EUR 600,000 has been budgeted to fund the well
intervention in STC, as well as to fund the installation of new natural gas
treatment infrastructure because of the high methane content of the natural gas
produced from STC.

A production of up to 10,000 cubic meters of natural gas is expected in the
event of a successful recompletion of ST-1D.

All production from STC will be sold locally, rather than by way of the national
pipeline, enabling a higher selling price to be achieved and resulting in an
expected monthly revenue of approximately EUR 100,000 depending on the
production rate to be achieved.

Update on Reactivation of Sant'Andrea concession in Italy

The Company is still awaiting certain final bureaucratic formalities to be
completed prior to production activities being recommenced.

In view of the above, production is now expected to commence during Q1 of 2023.

Luca Benedetto, Chief Financial Officer, and Managing Director of Italian
operations, commented:

"We are very pleased, following a periodic review last performed in 2013, that
our Italian subsidiary has received renewed confirmation of its technical and
financial capabilities as an operator by the Italian oil and gas authorities.

Our Italian energy production portfolio has significant untapped development
potential. We look forward with enthusiasm to unlocking this during Q1 and Q2 of
2023 and progressively scaling up our revenue generation in the current
favourable energy pricing climate.”


Further Information:

Zenith Energy Ltd

Andrea Cattaneo, Chief Executive Officer

Tel: +1 (587) 315 1279
E: info@zenithenergy.ca

BlytheRay - Financial PR/IR

Tim Blythe, Megan Ray Tel: +44 207 138 3204
E: zenith@blytheray.com

Alternative Resource Capital - Broker

Alex Wood
Keith Dowsing
Tel: +44 (0) 207 186 9004
Tel: + 44 (0) 207 186 9005

Notes to Editors:

Zenith Energy Ltd. is a revenue generating, independent energy company with
production, exploration and development assets in Tunisia, Italy and the
Republic of the Congo, 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 transformational opportunities in the
Middle East, Africa, and Europe through the development of proven revenue
generating oil, gas, and electricity 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

Market Abuse Regulation (MAR) Disclosure

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.

More information:
Access the news on Oslo Bors NewsWeb site

577290_02.12.2022 Norway.pdf