Zenith Energy Subsidiary Acquires Drilling Equipment For EUR722,000

Zenith Energy Ltd on Wednesday said its oilfield services unit Zena Drilling Ltd has purchased drilling equipment from B Robotics W Srl for EUR722,000.

The oil and gas company said it has agreed with Robotics that 75% of this drilling equipment will be transported with the BD-260 drilling rig. This is expected to enable a reduction in transportation costs and a faster deployment of the equipment in operations.

Zenith has also confirmed that it has reached an agreement with an undisclosed international logistics company for the transportation of the BD-260 drilling rig from Italy to Azerbaijan, where the company's onshore oilfield assets are located.

Shipment is expected to begin on Monday next week.

"I am very pleased that the BD-260 drilling rig is now ready for shipment after a full rigging up and rigorous inspection," said Chief Executive Andrea Cattaneo.

"Zenith's strategic preference will always be towards owning the key equipment required for its long-term operational development with the purpose of maximising cost-control and avoiding a dependence on costly third-party service providers," added Cattaneo.

Zenith shares were trading 7.1% lower on Wednesday at 3.30 pence each.