October 4, 2024
ZENITH
ENERGY LTD.
("Zenith" or the
"Company")
Update on
Legal Claim against SMP
Zenith Energy
Ltd. (LSE: ZEN; OSE: ZENA; OTCQB:
ZENAF), the listed international energy production and
development company, is pleased to provide an update regarding the
legal claim being brought before the Paris Commercial Court (the
"Court") by its fully owned
subsidiary, Anglo African Oil & Gas
Congo S.A.U ("AAOGC") against SMP Energies (hereafter
"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.
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, as a direct
result, to begin production activities from the Tilapia
oilfield.
The Company believes that the Claim
launched by AAOGC has merit because of the significant evidence
collected at the time to substantiate its position. AAOGC has since
intensified its legal activities in support of the Claim by
commissioning third-party expert reports.
As announced on July 3, 2023, the
Court rejected SMP's request for
a stay of proceedings in France due to new proceedings having
been initiated in the Republic
of Congo, stating that SMP's request contained
"all the characteristics of a
dilatory request", and ordered SMP to pay an amount
of EUR 30,000 to AAOGC as procedural costs
(the "Procedural
Costs").
SMP unsuccessfully appealed the
decision of the Court. As a result, the Company is pleased to
confirm that the Paris Court of Appeal upheld the
decision of the Paris Commercial Court and that AAOGC has
now received payment in the amount of approximately EUR
30,000.
The Company has appointed Charles
Russell Speechlys as new legal counsel before the Court
in connection with the legal claim against SMP. The final
submission for court pleadings is expected to take place on
October 25, 2024.
The final pleadings of the case,
resulting in a potential positive ruling in favour of AAOGC by the
Court, are expected to now take place on or around March
2025.
Andrea Cattaneo, Chief Executive of Zenith,
commented:
"We are pleased by the decision of the Appeal Court,
confirming the dilatory conduct of SMP who has made every effort to
delay and protract legal proceedings to the detriment of
AAOGC.
The Company will now proceed in presenting its final
submissions with the aid of expert technical consultants to
maximise the possibilities of a favourable decision that will
compensate AAOGC for the very significant commercial damages it
suffered because of failures ascribable to SMP."
Further Information:
|
Zenith Energy Ltd
Andrea Cattaneo, Chief Executive Officer
|
Tel: +1 (587) 315 1279
E: info@zenithenergy.ca
|
Notes to Editors:
Zenith Energy Ltd. is a revenue
generating, independent energy company with energy production,
exploration and development assets in North Africa, the US
and Europe. The Company is listed on the London Stock Exchange
Main Market (LSE: ZEN), the Euronext Growth of the Oslo Stock
Exchange (OSE: ZENA) and the Venture Market of
the OTCQB (OTCQB: ZENAF).
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
Market Abuse Regulation (MAR) Disclosure
The information contained within
this announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018
("MAR"). Upon the
publication of this announcement via a Regulatory Information
Service ("RIS"), this
inside information is now considered to be in the public
domain.