Zenith Energy
Annual Report 2022

Plain-text annual report

Energy Ltd. Zenith Annua( Report For the Vear Ended March 31, 2022 & Financial Statements of Hydrocarbons far the award ofTilapia Il. of the Republic of the Congo that Zenith Congo had been selected bidder as the successful in the process The Group is currently engaged which will be subject the Ministry ratification concluded. of Hydrocarbons, ofthe PSC The timing a new production to final legislative sharing approvai be guaranteed with ("PSC") are once negotiations at this point. of negotiating uncertain contrae! and cannot remains In the event that the Group is successful commence the Mengo and Djeno farmations. at the earliest activities drilling in being awarded the Tilapia Il PSC, Zenith opportunity to achieve potentially highly materiai will endeavour production to from Production activities During the financial year ended March 31, 2022, the Group: a)The Group generateci revenues from oil and natural gas of CAD$8,239k (2021-CAD$596k) b)As of March 31, 2022, inventory consists (2021-l,057k) relateci to 116,391 barrels of crude oil that has been produced of CAD$5,690k but not yet sold in Tunisia. e)The Company sold 131,556 mcf of natural gas from its ltalian assets, as compared mcf of to 12,713 period. natural gas in the 2021 similar g Financin The Company issued net tota I of CAD$15.6m equity during the course of the financi (March 31, 2021- CAD$10.4m) al year ended March 31, 2022, raising a combined to finance the Group's development strategy in Africa. During the year, 708,685,118 16). new common shares were issued, as detailed (note in the financial statements To fund the acquisition the Company · issued governed of assets, unsecured, law, at par value (the "Notes"): by Austrian of its share to avoid an excessive and their development, multi-currency (GBP, Euro, CHF and USD) Euro Medium Term Notes, dilution capitai As of March 31, 2022, the Company sold Notes far an aggregate 31, 2021, comparative aggregate amount CAD$ 2,500,658.11). total amount of CAD$ 10,360,396 (March Financial Results an after-tax The Group recorded after-tax profit on business recurrent administrative expenses relateci far the year ended March 31, 2022, compared to an about by the gain by the non­ sh items. was brought relateci to the Tunisian impacted negatively sitions and non-ca to the negotiation far the acqui far the year ended March 31, 2021. This result of CAD$75,907k of CAD$64,437k acquisition of CAD$3,525k assets, profit The group production costs far the year were CAD$2,217k (2021- CAD$1,651k). Finance expense far the year was CAD$2,278k (2021 - CAD$1,4Slk). Cash balances of CAD$1,153k (2021- CAD$1,631k) were held at the end of the financial year. 8 Zenith Energy Ltd. Annual Report & Financial Statements For the Year Ended March 31, 2022 Total equity attributable to the ordinary shareholders of the Group was CAD$103,090k as of March 31, 2022, (2021 - CAD$23,803k). Dr. José Ramón López-Portillo Non- Executive Chairman August 26, 2022 9 Zenith Energy Ltd. Annual Report & Financial Statements For the Year Ended March 31, 2022 The Directors therefore have made an informed judgment, at the time of approving the financial statements, that there is a reasonable expectation that the Group has access to adequate resources to continue in operational existence for the foreseeable future. As a result, the Directors have adopted the going concern basis of accounting in the preparation of the annual financial statements. Further details on assumptions and conclusions drawn on going concern are included in the statement of going concern included in note 2 to the financial statements. Auditors During the current year, Jeffreys Henry LLP were appointed as auditor to the Group. A resolution proposing that they be re-appointed will be put at a General Meeting. Statement of Directors' responsibilities The Directors are responsible for preparing the Annual Report and the Financial Statements in accordance with applicable law and regulations. The Directors are required to prepare financial statements for each financial year. The Directors have elected to prepare the consolidated financial statements in accordance with International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (“IASB”). The Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and of the profit or loss of the Group for that year. In preparing these financial statements, the Directors are required to: • Select suitable accounting policies and then apply them consistently; • Make judgments and accounting estimates that are reasonable and prudent; • State whether applicable IFRSs as issued by the IASB have been followed, subject to any material departures disclosed and explained in the financial statements; and • Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business. The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group’s transactions and disclose with reasonable accuracy at any time the financial position of the Group. They are also responsible for safeguarding the assets of the Group, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Group's website. Approved by the Board dated on August 26, 2022 Signed .................... ............................. Jose Ramon Lopez-Portillo Chairman 22 

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