REG - Zenith Energy Ltd - Outcome of ICC-2 & Application for Annulment

About this update from Zenith Energy Ltd.

RNS Number : 3838R Zenith Energy Ltd 16 July 2025 July 16, 2025ZENITH ENERGY LTD.("Zenith" or the "Company")Outcome of ICC-2 & Application for AnnulmentZenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; OSE: ZENA; OTC PINK: ZENAF), the listed international energy production and development company, announces that its wholly owned subsidiary, Canadian North Africa Oil and Gas Limited ("CNAOG"), has received the decision of the Arbitral Tribunal in respect of the ICC-2 Arbitration regarding the Sidi El Kilani concession ("SLK Concession") against the Republic of Tunisia ("ICC-2 ").DecisionThe Arbitral Tribunal has issued a decision rejecting the entirety of the claims presented by CNAOG.Application for AnnulmentUnder the rules of the ICC, a party may apply for annulment of an arbitral award for, inter alia, cases of procedural irregularities.The Company confirms that its legal counsel identified and documented several serious procedural irregularities during ICC-2.Following legal advice, the Company will now proceed with an application for annulment of the ICC-2 award before the Swiss Federal Supreme Court in Lausanne, Switzerland.The Swiss Federal Supreme Court usually renders decisions on annulment applications within 6 to 9 months from submission.BackgroundCNAOG initiated the ICC-2 against the Republic of Tunisia, as announced in December 2023, following a series of arbitrary actions and obstructions undertaken by the Republic of Tunisia, leading to the arbitrary termination of the SLK concession.Inter alia, these included:· CNAOG's lost production revenue and associated profitability, during a period of high energy prices, from the SLK Concession until its initial expiry in December 2022.· The volume of crude oil produced from the SLK Concession and allocated to and received by CNAOG upon the completion of the acquisition.· The value of the 45% interest in the renewal of the SLK Concession, representing a breach of CNAOG's right to renew its previously existing 22.5% interest in SLK, as well as the 22.5% interest held by Kuwait Foreign Petroleum Exploration Company, which relinquished its interest in the SLK Concession before its initial expiry.CNAOG filed claims in the amount of approximately US$130 million following calculations made by third-party experts.Andrea Cattaneo, Chief Executive Officer of Zenith, commented:"We are outraged by the dec...

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