Canadian international oil and gas production company Zenith Energy has established a Norwegian subsidiary - Zenith Norway - as a precursor to securing its first acreage off the country.
Zenith said it intends to use Zenith Norway as a vehicle for intended participation in future licensing bids to be organized by the Norwegian Ministry of Petroleum and Energy, as well as to actively pursue the potential acquisition of working interests in mature energy production assets across Northern Europe.
To this end, the Company will mandate a leading Norwegian law firm to advise on the process of obtaining pre-qualification status for the acquisition of participating interests in Norwegian Continental Shelf (NCS) energy production licenses.
The pre-qualification process entails a general assessment by the Norwegian authorities of Zenith's eligibility to become a licensee. Upon the successful achievement of pre-qualification status, in order to qualify as a licensee, Zenith will need to complete a transaction and obtain approval to become a licensee or operator for the specific production license from the Norwegian Ministry of Petroleum and Energy and the Ministry of Finance.
The necessary formalities for Zenith Norway's establishment are expected to be completed within 7 working days.
The above-mentioned strategic objectives are expected to be funded by the issuance of the Company's recently announced unsecured, multi-currency Euro Medium Term Notes program for an amount of up to EUR 25,000,000.
Andrea Cattaneo, Chief Executive Officer, said: "We are pleased to have formally established our presence in Norway and look forward to successfully obtaining pre-qualification status, the first step towards becoming a licensee. The Company is exploring a number of avenues to enrich our portfolio at a time of great opportunity for counter-cyclical expansion."