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