Similar to the Company's activity in other countries, Zenith incorporated an element of a local name, in this case "Aran", to reflect the central Azerbaijan region where its three producing fields are located. This local identification is considered important to management, and indicative of both Zenith's long term commitment to Azerbaijan and plan to exclusively focus on the recently acquired fields. Having a wholly-owned subsidiary fully dedicated to this project is a strategy that has proven to attract significant local expertise and enabled Zenith to effectively integrate new methods, technologies and personnel. Azerbaijani management familiar with the properties will initially be supplemented by new technical and operational personnel from Zenith, however the Company will also begin to actively identify international management and specialists willing to relocate to Azerbaijan as part of its strategy to grow domestic production.

Zenith Aran Oil Company Ltd. will continue to operate from the parent company's branch office Azure Plaza, in Baku, the capital of Azerbaijan. This corporate office is a two and a half hour drive from the operational office located in the Aran region, from where Zenith's producing fields are managed.

The Company and its advisors are currently focusing on coordinating the official handover of operations to Zenith Aran Oil Company. In cooperation with the various Ministries and local entities, Zenith has made significant progress in dealing with matters not only pertaining to production and future development, but items dealing with human resources including taxation, employment and labour and environmental accounting.

Zenith's three Azerbaijan fields have a compounded acreage of 642.4 square kilometres, and are currently producing ~350 barrels of crude oil per day, although they have historically produced larger volumes (Source: SOCAR, State Oil Company of Azerbaijan Republic). Gas is also produced, but in low quantity, and is used at the site. The fields are named Muradkanly, Yafarli and Zardob. Zenith will be the operator of the concession and will have an 80% interest, while the local state party will retain 20%. The license will have a duration of 25 years and has the capacity to be extended for an additional 5 year period.

Further to the Company's acknowledgment that it has retained an internationally recognized independent reservoir engineering firm to prepare a 51-101 National Instrument report, Zenith anticipates that the evaluation of the remaining reserves and the expected productivity potential of the three fields will be available for release shortly.