On 20 April 2020 Zenith Energy announced that it signed a conditional sale and purchase agreement with Kufpec for the acquisition of its interest in the Sidi El Kilani concession, onshore Pelagian Basin. Kufpec holds a 22.5% interest in the asset through a 22.5% ownership in the operating company Compagnie Tuniso-Koweito-Chinoise de PÃ©trole (CTKCP). Zenith will pay USD 0.5 million to purchase the stake in the Sidi El Kilani field. The deal is subject to approval by the authorities. Current participants are: state company ETAP with 55%, CNPC with 22.5% and Kufpec with 22.5%.  On 2 March 2020, Zenith Energy reported that it signed an exclusivity agreement to acquire an operated working interest in an onshore oil production asset in Tunisia. No further details were given. The company expected to complete the operation by 31 March 2020, subject to the satisfactory conclusion of an ongoing due diligence evaluation.  Zenith Energy took advantage of the depressed prices of E&P assets due to the oil price crash and the COVID-19 pandemic.  Sidi El Kilani was discovered in 1989 by Kufpec and started production in 1991. The field currently produces around 560 b/d of oil. According to Zenith Energy, the field generates gross annual revenues of approximately USD 15 million.  Sidi El Kilani produces 39 API gravity oil from a fractured carbonate reservoir in the Abiod Formation, at a depth of around 1,600 m. The reservoir characteristics are enhanced by natural fractures and locally by dolomitisation. The field facilities include a gas-oil separation plant and a 125 km 8 inch pipeline to the La Skhira terminal with a capacity of 22,000 b/d.  Andrea Cattaneo, CEO of Zenith commented: "The board views Tunisia as a safe, democratic jurisdiction with a well-established history of successful oil a d gas production activities for junior, independent companies such as Zenith. Upon completion of the deal, Zenith will have a material production revenue for reinvestment in field development activities. Our strategic outlook is that oil prices will progressively strengthen in line with a gradual worldwide recovery in financial and industrial activity following the progressive alleviation of the devastating COVID-19 pandemic."
Zenith has signed a conditional SPA with Kufpec for the acquisition of the latter's 22.5% in CTKCP (Compagnie Tuniso-Koweito-Chinoise de PÃ©trole) operator of onshore the Sidi El Kilani lease/field (204 sq km) and North Kairouan block (3,172 sq km), for USD 500,000. Holding would presumably remain unchanged (CTKCP (op), Kufpec, CNPC + ETAP).  