Zenith Energy Ltd on Thursday said that it has made an offer to the government of Benin for the award of an initial nine-year licence to operate Block 1 in the Seme oilfield, offshore Benin.

The block, which covers around 551 square kilometres, has estimated recoverable reserves of 22 to 28 million barrels of oil and 428 billion cubic feet of natural gas.

It has produced a reported 22 million barrels of oil to date, the Calgary, Canada-based oil & gas company noted, with last production having taken place in 1998.

If the offer is accepted, Zenith said it will restore and expand the productivity of Block-1. This includes a ‘rigorous’ due diligence process.

It will also use the existing infrastructure installed in 2015 to restore commercial production, the company added.

Chief Executive Andrea Cattaneo said: ‘We are delighted to have submitted this offer for what is an extremely exciting opportunity in Benin, representing the largest and most prospective oilfield in the country.

‘Block-1 has significant untapped, independently assessed oil and gas reserves, a proven history of material oil production and existing field infrastructure. These key qualities make it a potentially highly enriching addition to our portfolio and fully satisfy the key criteria defining our growth strategy,’ Cattaneo added.

Shares in Zenith were down 2.0% to 1.00 pence each in London on Thursday morning.

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