Zenith Energy Ltd on Friday said it has signed a second memorandum of understanding with an unnamed company in Kazakhstan to explore the potential of buying two oil development assets in the Kyzylorda region.

The Calgary, Canada-based energy firm said if agreed with the seller, commercial terms will be formalised via a share purchase agreement on or before November 30.

Zenith said drilling activities at the potential acquisition has proved a ‘significant production potential, with 2P reserves totalling approximately 4.5 million barrels oil.

Chief Executive Officer Andrea Cattaneo said: ’We are pleased to have signed a second MOU for an oil development asset in Kazakhstan.

‘The assets under review appear to have a clear pathway to oil production without the requirement for intensive technical and financial investment. Funding of any potential transaction in Kazakhstan will not to be funded by way of equity.’

Shares in Zenith were up 6.7% at 0.40 pence each in London on Friday morning.

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