Zenith Energy has made payment for a total of US$250,000 to KUFPEC, a subsidiary of the State of Kuwait's national oil company, in relation to the acquisition of a 22.5% working interest in the North Kairouan permit and the Sidi El Kilani Concession in Tunia, which contains the Sidi El Kilani oilfield ("SLK").

As publicly announced on April 20, 2020, the total consideration payable by Zenith in relation to the Tunisian Acquisition is US$500,000.

Under the terms of the conditional sale and purchase agreement ("SPA"), first announced to the market on April 20, 2020, signed between Zenith Energy Netherlands B.V. ("Zenith Netherlands"), a recently incorporated fully owned subsidiary of the Company, and KUFPEC (Tunisia) Limited ("Seller"), a 100% subsidiary of KUFPEC, KUFPEC's entitlement of oil produced from SLK since the date of signing of the SPA will belong to Zenith Netherlands.

It is expected that the production revenue generated since the date of signing of the SPA will be sufficient to fully satisfy the second and final Consideration payment to be made by the Company to the Seller for the Tunisian Acquisition by October 2020. Zenith does not therefore expect to raise additional capital to fund the Tunisian Acquisition.

Completion of the Tunisian Acquisition remains conditional on approval being granted by the Comité Consultatif des Hydrocarbures of the Republic of Tunisia in respect of the transfer of the Seller's right, title and interest in and under the Tunisian Acquisition to Zenith Netherlands.

Zenith can confirm that it has initiated the necessary formalities in relation to the aforementioned approval process, and that a decision is expected in due course.

KeyFacts Energy: KUFPEC Tunisia country profile*