Zenith Energy Share Discussion Threads

[effiert] 27/1/2017 09:10

Big background buyer taking up all the stock..

Whats not to like at this market cap.. CEO taking salary at a premium of the share price says it all.

20p first stop imo on news.

[potential] 27/1/2017 08:59

Looking promising - if it breaks 11p then next resistance is 14.5p

[calmtrader] 26/1/2017 15:10

Someone on twitter just asked "what is the extraction Tax in Azerbaijan" anybody know...its not a silly % is it

[honestcrook] 26/1/2017 14:53

I would honestly agree very happy to be in this

[hearts1] 26/1/2017 14:32

Would expect 15-20p next few weeks.

[effiert] 26/1/2017 10:18

#ZEN Zenith Energy. Looks like seller just been cleared. 1.15m @ 9.50p just reported. Could move now.

Looks like placing overhang gone. Could move pretty sharpish now

[zengas] 25/1/2017 22:36

The oil doesn't seem to be in doubt - more so the completion. If there's been progress in the last 18 years with the likes of Schlumberger and other major service companies in completion techniques it could be a game changer for a tiddler like ZEN at under £10m m/cap. A few hundred bls per well and additional reserves would be all it takes at this low start point in valuation.


This is only 1 field and there's potential up their sleeve in Argentina that could be worth 1-2 times current m/cap in due course if expanded/successful.

This gives a decent insight (and bear in mind oil at approx $24/b then as well as them having a raft of projects in 5-6 countries competing for their cash) -

" Muradkhanli is potentially the largest onshore field in Azerbaijan, with estimated oil in place of approximately 5 billion bbl. It lies about 70 miles west of Baku near the rail oil export line to Tblisi and Sepsa, Georgia and is strategically located near the planned Baku-Ceyhan main export pipeline route.

Under terms of the PSA signed in 1998, Ramco holds a 50% interest in the field with an affiliate of Socar holding the remaining 50%. The contract area covers three proven oil accumulations: Muradkhanli, Jafarly, and Zardab, where Socar originally found some 3-5 billion bbl of oil in the field, and has produced over 22 million bbl to date, mostly from the Upper Cretaceous reservoir horizons. But production has fallen to less than 10% of the original dayrate, despite the state oil company's efforts to keep the field in operation for so long with so little resources. (See "Ramco Discovers Oil at Muradkhanli, Onshore Azerbaijan".)

Ramco's Muradkhanli Operating Company (MOC) operates the project as a rehabilitation, exploration, development, and production sharing agreement. Phil E. Maxwell, MOC president, says that Socar was not able to exploit Muradkhanli's Middle Eocene reservoir because of completion problems—it is a reservoir prone to produce solids and is an high pressure play. Traditionally what happens is the chemical problems in the hole causes collapse.

"Our mandate is to drill the well quickly and complete it in such a way to prevent or inhibit the solids production and to sustain the production volume as well. Our strategy is to drill the well where previous Socar wells showed high productivity on test but difficulties in producing the well. So it's a risk project, but not in the sense that the oil or source rock or the trap needs to be proven. The risk here is the difficulty in completing the well to sustain the production—an engineering risk."

MOC's new well (MOC-01) is only 75 meters from the previous well (Muradkhanli-208), which was drilled in 1980 and produced on DST up to 2,100 b/d, but soon became clogged due to mechanical difficulties. MOC-01 was spudded in January, drilled down to 4,567 meters, and logged, whereupon a significant oil column was identified in the fractured Middle Eocene limestones, sandstones, and volcanics, as was expected, and an unexpected additional play in the Upper Eocene fractured clastics. A number of attractive fractures were also found in the rock, but when it came to running the seven-inch line to complete the well, problems thwarted further completion. There was an attempt to complete the well through the drillpipe, but a tool was dropped and it was abandoned. (See "Ramco Sets Casing on First Azeri Onshore Well".)

MOC then decided to sidetrack this well, which commenced in mid-June, with drilling through mid-July. Considerable flow is anticipated on tests, but sustained commercial levels of production have to be verified. Seismic is scheduled for the field, then a few appraisal wells so that, by the end of 2001, there should be a clear picture of the extent of recoverable reserves. Known already, however, is that it will require considerable fracturing throughout the field, and extensive horizontal drilling. By 2002, if appraisals are successful, a comprehensive field development program will be put in place covering both the Rehabilitation Area and the new Exploration Area, with potential oil production in excess of 100,000 b/d of oil. "

[bad gateway] 25/1/2017 22:25

They sound as if they were as useful with the drill bit as rxp.

"Whilst drilling the MOC-01 sidetrack, Middle Eocene fractured reservoirs
briefly flowed oil at rates equivalent to 5,000 bopd prior to being shut-in as
a result of well control measures. Having studied all of the data from the
well, the Company believes that these fractures were blocked by drilling mud,
lost circulation material, and cement prior to perforating. Perforating guns
used to access these fractures may therefore have been insufficient to
penetrate beyond the damaged zone, resulting in inconclusive test rates."


for research..

[cashandcard] 25/1/2017 22:19

Zengas,Thanks for that. Puts it into context, pre-2003 low oil prices, well control issues and the eventual fall of ramco.Rates 'equivalent to 5000bopd' (few hundred?) is not bad if it can be sustained.Cash

[zengas] 25/1/2017 22:02

I added a few more hundred thousand here today given the small market cap and the upside potential on just the w/overs alone. This could be a substantial opportunity 2nd time around given further improvements in drilling techniques (when we do start to drill new wells). Ramco/Socar were estimating between 3 and 5 billion bls oil in place on the Muradkhanli field. If we eventually tap some other part or sweeter area then who knows what the possibilities on just that one field could be taking into account ZENs low m/cap and building cash from increasing w/overs considering Ramco got flows of up to 5,000 bopd.

As for Ramco 17 years ago - They seemed to have had either well problems or legal disputes every where they went - from Poland, Georgia, USA, Azerbaijan, Czech Republic.

They did farm into the same 3 fields on a 50-50 basis in Azerbaijan in 1998. They drilled an exploration prospect and i don't think they have the terms Zenith have now. They only drilled one well and a sidetrack and both were problematic but they hit oil flow in both of 5,000 bopd and 1,000 bopd particularly in the eocene. Later the Seven Heads gas field offshore Ireland eventually practically destroyed them. I think they were in too many places at once which was eating up their cash resulting in significant losses and they decided to cut back without giving the Azerbaijan prospects more attention. From what i see, they were interested in unlocking the 3 billion barrel potential prize rather than workovers. The oil price when they drilled in 2000 was about $24/b average and that has to be taken into account on their rehabilation terms.

Ramco background on the 1 well and s/track -

29th March 2000
Ramco spudded the MOC-01 well, on the Muradkhanli field, on 11 January 2000; the first well to be drilled onshore Azerbaijan under a Production Sharing Agreement (PSA). Ramco signed its PSA for the field in July 1998; one of the first to be signed for an onshore field in Azerbaijan. Muradkhanli is believed to be one of Azerbaijan's largest onshore fields. Ramco's feasibility study, as agreed by the State Oil Company of the Azerbaijan Republic (SOCAR), concluded that there could be as much as 5 billion barrels of oil in place. The Contract Area for the PSA covers 565 square kilometres.

The PSA gives Ramco a 50% interest in Muradkhanli, Jafarli and Zardab fields in the contract area, with SOCAR retaining 50%.


Drilling Report
Ramco Energy PLC
18 October 2000
The first well, MOC-1, was drilled to its planned total depth in April but then the Company experienced a series of technical difficulties which necessitated the drilling of the side-track, MOC-1z. The side-track also experienced mechanical problems and, like MOC-1, oil inflows of up to 1000 bopd from the Upper Eocene and the top section of the I-Marl. To control these inflows heavy muds were required and these sections were cased off. The well was then drilled to TD, logged and a 4.5 inch liner run and cemented. Logging showed a thicker section of oil-bearing reservoir than the original hole. The lowermost section of the I-Marl, behind the 4.5 inch liner was perforated and flow tested. The results were disappointing and while methods to stimulate this zone, and to perforate and test the upper zones, are being examined, activities in the well have been suspended.


Ramco Energy PLC
Muradkhanli Field Update

19 December 2000

Ramco announced on 18 October 2000, that following perforation and testing of the main target reservoir in the Middle Eocene, it had decided to suspend temporarily the MOC-1z well. The Company demobilised the rig and other service companies in order to minimise costs whilst it evaluated all the options to work-over the well to improve the productivity of the perforated zone and to test the other prospective intervals in the well. Whilst drilling the MOC-01 sidetrack, Middle Eocene fractured reservoirs briefly flowed oil at rates equivalent to 5,000 bopd prior to being shut-in as a result of well control measures. Having studied all of the data from the well, the Company believes that these fractures were blocked by drilling mud, lost circulation material, and cement prior to perforating. Perforating guns used to access these fractures may therefore have been insufficient to penetrate beyond the damaged zone, resulting in inconclusive test rates.


Shareholders will be aware of the disappointing news regarding our Muradkhanli prospect, onshore Azerbaijan. Towards the end of last year we announced that initial test results had been disappointing. Since then, further tests have confirmed that the oil in place is unlikely to be commercially recoverable due to poor reservoir characteristics. The rehabilitation of the wells providing the existing limited oil production from the contract area is unlikely to be commercial without the added production that had been expected from the deeper reservoir. The potential prize, which had eluded the State Oil Company of Azerbaijan (SOCAR), was over 3 billion barrels in place. From the beginning we acknowledged the complicated geology, which we believed, with good oilfield practice and western technology, had the potential to deliver many millions of barrels. In the end it was the geology which won. The field will now be operated on a care and maintenance basis until we are contractually entitled to return it to SOCAR in November of this year.

[cashandcard] 25/1/2017 21:03

The news today of salary swap for premium equity is exemplary. I wish other smallcap bosses would take heed.I have a question for those in the know, former licence holder Ramco drilled MOC-1 and 1z wells in Muradkhanli fields. They encountered oil but suffered significant mechanical problems. On the 22nd March 2001 Ramco declared 1z non-commercial well. Have Zenith been able to establish what went so wrong for Ramco and also how they intend to mitigate such issues? Ramco took on the contract to work over old wells and do some exploration - they ended up letting it go.Cash

[bad gateway] 25/1/2017 13:20

From a poster on the lse site.


Can see why zen say they can do better.

[aggieuk] 25/1/2017 10:27

Seems to be up to the TSXV lot:'The Company's Board of Directors has agreed to the Proposal subject to the filing of an application with the TSX Venture Exchange ("TSXV") and the receipt of approval of the Proposal, including how such Salary Sacrifice Shares will be priced, from the TSXV.'

[tyranosaurus] 25/1/2017 10:24

How much salary does he get in the first place ?
And as marmar80 asks - what price does he get the shares at ?

[cottoner] 25/1/2017 08:28

Well RNS headed:

CEO Foregoes Salary in Lieu of Equity at Premium

[marmar80] 25/1/2017 08:21

At what price?

[honestcrook] 25/1/2017 08:10

What confidence the CEO must have in this company. Great news flow to shareholders a CEO with great interests in the shareholders and really believes in the company's future.

[effiert] 25/1/2017 07:14

thats confidence for you. CEO taking 12 months salary in shares!

[nasnas1] 25/1/2017 07:09

Can't ask for more than that. Fully aligned

[aggieuk] 25/1/2017 07:04

Now that's a good rns! The CEO is so confident he's gonna take his salary in shares!!!!

[aggieuk] 25/1/2017 07:04

Zenith Energy Ltd CEO Foregoes Salary in Lieu of Equity at PremiumSource: UK Regulatory (RNS & others)TIDMZENRNS Number : 0265VZenith Energy Ltd25 January 2017Zenith CEO Foregoes Salary in Lieu of Equity at PremiumCalgary, Alberta, January 25, 2017, Zenith Energy Ltd. ("Zenith" or "the Company") (LON: ZEN; TSX-V:ZEE) the dual listed oil & gas producing company with assets in Azerbaijan, Italy and Argentina is pleased to announce a salary sacrifice proposal by Andrea Cattaneo, CEO of the Company.Director Salary Sacrifice in Exchange for Company SharesAndrea Cattaneo, CEO, has proposed (the "Salary Proposal") to the Board of Directors to swap his full salary for the next twelve months, effective on the 1 February 2017, in exchange for common shares of Zenith (the "Salary Sacrifice Shares"). The Company's Board of Directors has agreed to the Proposal subject to the filing of an application with the TSX Venture Exchange ("TSXV") and the receipt of approval of the Proposal, including how such Salary Sacrifice Shares will be priced, from the TSXV.Andrea Cattaneo, Zenith Energy CEO, commented:"In a clear indication of my strong belief in the potential of Zenith's future, I am pleased to announce my remuneration in equity. This proposal stems from my strong belief in the Company.I trust shareholders of Zenith will view my commitment positively and recognise the real value of the Company.I am determined to see the success of Zenith."Reader AdvisoryThis press release contains forwarding looking statements. More particularly, this press release contains statements concerning the possible issuance of common shares in lieu of salary for an executive officer of the Company. Although the Company believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The forward looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

[cpap man] 24/1/2017 15:30

Link please

[2lb] 24/1/2017 15:03

Decent interview on Vox markets today....

[tyranosaurus] 24/1/2017 13:16

Pleased to see the mention of regular updates.
So many of the smaller companies don`t manage to do this.