Zenith Energy (LSE:ZEN) has agreed terms to sell its wholly owned ZEN-260 onshore drilling rig for total gross consideration of approximately US$4.3m to a company operating in the oil and gas sector in the Philippines, including payment of a non‑refundable deposit.
The agreed consideration materially exceeds previously disclosed indicative offers of approximately US$2m, compares with the rig's original acquisition cost of €2.25m in September 2018.
Zenith, the listed international energy production and development company, says the proceeds will strengthen its financial position and provide additional funding to accelerate the development of its Italian solar portfolio.
"We are extremely pleased with the progress achieved in relation to the sale of the ZEN-260 and the substantial increase in value obtained through the negotiation process," Andrea Cattaneo, Chief Executive Officer, said.
The transaction has received the necessary approvals from the relevant Philippine authorities and importation of the rig is expected to take place during July.
