Zenith Energy Acquires KUPEC's Interest in the SLK Field in Tunisia
London, Toronto and Oslo-listed junior E&P company Zenith Energy Ltd. has signed a conditional sale and purchase agreement with a subsidiary of Kuwait Foreign Petroleum Exploration Company KSCC (KUFPEC) for the acquisition of its 22.5% working interest in the North Kairouan Permit and the Sidi El Kilani (SLK) Concession in Tunisia. In addition, KUFPEC will sell its 22.5% stake in Compagnie Tuniso-Koweito-Chinoise de Pétrole (CTKCP), the operator of the assets. The total transaction consideration payable is US$500,000. Tunisian state-owned oil company Entreprise Tunisienne d’Activités Pétrolières (ETAP) holds a 55% interest in the assets, with China National Petroleum Corp. (CNPC) holding the remaining 22.5%.
The SLK Concession is located onshore in the Pelagian Basin in Eastern Tunisia, and contains the Sidi El Kilani oil field. The field was discovered by KUFPEC in 1989 and commenced commercial production in 1993, reaching peak production of approximately 20,000 barrels of oil equivalent per day in 1995. The SLK facilities also include a permanent Gas Oil Separation Plant (GOSP) and a 125 km pipeline with 22,000 barrels per day capacity from the field to the La Skhira Terminal. The field currently produces approximately 700 barrels of oil per day.
The completion of the acquisition is conditional on certain Tunisian regulatory approvals.