Zenith Energy sells drilling rig for $2m to boost working capital

Zenith Energy Ltd. has announced the impending sale of its fully owned ZEN-260 onshore drilling rig. The company is finalizing negotiations, having received two offers totaling approximately $2 million, with the transaction anticipated to close and payment received by the end of 2025. This divestment aims to provide additional working capital and strengthen Zenith’s cash position, supporting ongoing business development activities in Italy.

The ZEN-260, a 1,200 hp mechanical IDECO rig acquired in September 2018 for operations in Azerbaijan, was intended for deployment in Tunisia after acquisitions in 2020-2021. However, Tunisian authorities denied the importation application, leading to the decision to sell the "now-legacy equipment."

chief executive Andrea Cattaneo noted that the sale follows the company's exit from Azerbaijan and the subsequent rejection of the rig's import into Tunisia, diverting from plans to utilize it for newly acquired oil production licenses. Zenith Energy operates in energy production, exploration, and development across North Africa, the US, and Europe.