Zenith Energy Ltd Completion of Private Placement on Merkur Market (9787G)

TIDMZEN

RNS Number : 9787G

Zenith Energy Ltd

12 November 2018

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION INTO OR IN THE UNITED STATES, JAPAN OR AUSTRALIA. THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO SUBSCRIBE OR PURCHASE ANY OF THE SECURITIES DESCRIBED HEREIN

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 ("MAR"). Upon publication of this announcement via a regulatory information service ("RIS"), the inside information contained in this document is now considered to be in the public domain.

November 12, 2018

ZENITH ENERGY LTD.

("Zenith" or the "Company")

Completion of Private Placement following Admission to Merkur Market

Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; TSX.V: ZEE; OSE: ZENA-ME) the listed international oil & gas production company operating the largest onshore oilfield in Azerbaijan, is pleased to announce the completion of a second Private Placement following its Admission to the Merkur Market of the Oslo Børs. The Merkur Market is a multilateral trading facility owned and operated by the Oslo Børs.

As announced on November 7, 2018, in order to satisfy the Merkur Market admission requirements the Company completed a private placement with Norwegian investors raising gross proceeds of NOK 7,273,850 (approximately GBP668,300 or CAD$1,141,600) through the placement of 20,782,429 common shares of no par value at a subscription price of NOK 0.35 per share (approximately GBP0.032 or CAD$0.055 per Placement Share).

On November 9, 2018 after the close of the market and as a result of market demand, Zenith completed a second private placement with Norwegian investors raising gross proceeds of NOK 1,000,000 (approximately GBP91,700 or CAD$157,000) through the placement of 2,857,143 common shares of no par value (the "Placement Shares") at a subscription price of NOK 0.35 per share (approximately GBP0.032 or CAD$0.055 per Placement Share). The Placement Shares will be issued in the form of depositary interests in the VPS, the Norwegian Central Securities Depositary. No Insider/Person Discharging Managerial Responsibility has subscribed for Placement Shares.

Following issuance of the Placement Shares on November 9, 2018, the Company has a total of 239,959,730 common shares in issue and admitted to trading on the TSX Venture Exchange. It is expected that admission to trading of the Placement Shares on the Merkur Market will take place on November 12, 2018. An application for the Placement Shares to be listed on the standard segment of the UK Official List and to be admitted to trading on the Main Market of the London Stock Exchange will be made within 12 months of the issue of the Placement Shares; the total number of common shares listed on the standard segment of the UK Official List and admitted to trading on the Main Market of the London Stock Exchange remains 216,320,158.

As announced on November 7, 2018, the net proceeds of the aforementioned private placements, completed following the Company's admission to trading on the Merkur Market, will be invested in Zenith's Azerbaijan operations.

Orion Securities acted as manager for the Private Placement.

The information included in this announcement is subject to the disclosure requirements pursuant to the Norwegian Securities Trading Act.

Further Information:

Zenith Energy Ltd

Andrea Cattaneo

Chief Executive Officer

E-mail: [e-mail]

Tel: [phone]

Allenby Capital Limited - Financial Adviser

Nick Harriss

Nick Athanas

Tel: + 44 (0) 203 328 5656

Daniel Stewart & Company Plc - Joint Broker

Robert Emmet - Corporate Broking

Tel: + 44 (0) 207 776 6550

Optiva Securities - Joint Broker

Christian Dennis

Tel: + 44 (0) 203 137 1903

Vigo Communications - PR Adviser

Patrick d'Ancona

Chris McMahon

Tel: [phone]

Orion Securities - Financial Adviser

John E Skajem

Tel: + 47 4188 7412

This announcement and the information contained herein is issued for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, including the Placement Shares.

Notes to Editors:

Zenith Energy Ltd. is an international oil and gas production company, listed on the TSX Venture Exchange (TSX.V:ZEE) and London Stock Exchange (LSE:ZEN). In addition, the Company's common share capital was admitted to trading on the Merkur Market of the Oslo Børs (ZENA:ME) on November 8, 2018. The Merkur Market is a multilateral trading facility owned and operated by the Oslo Børs.

The Company was assigned a medium to long-term issuer credit rating of "B+" with Positive Outlook on October 8, 2018 by Arc Ratings, S.A.

The Company operates the largest onshore oilfield in Azerbaijan following the signing of a 25-year REDPSA, (Rehabilitation, Exploration, Development and Production Sharing Agreement), with SOCAR, State Oil Company of the Azerbaijan Republic, in 2016.

The Company's primary focus is the development of its Azerbaijan operations by leveraging its technical expertise and financial resources to maximise low-cost oil production via a systematic field rehabilitation programme intended to achieve significantly increased revenue. Zenith also operates, or has working interests in, a number of natural gas production concessions in Italy. The Company's Italian operations produce natural gas, condensate and electricity.

Zenith's development strategy is to identify and rapidly seize value-accretive hydrocarbon production opportunities in the onshore oil & gas sector. The Company's Board of Directors and senior management team have the experience and technical expertise to develop the Company successfully.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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November 12, 2018 02:30 ET (07:30 GMT)