Zenith Energy Share Discussion Threads

[scotty666] 09/2/2017 07:09

Is it just me or are these rns twice as long as they need to be? Anyway good news they are moving forward.

[stumbleupon] 09/2/2017 07:05

Do we expect a jump in the price now!

[cpap man] 08/2/2017 14:07

Over 5% now and rising!

[reckon that these are one of the main buyers that the house brokers have on their books]

[cpap man] 08/2/2017 14:00

Epsilon Investments PTE Ltd, a company registered in Singapore and controlled by Zainab Binte Mohamed Omar....emmmm....interesting very interesting!

[effiert] 08/2/2017 13:42

Holdings RNS. someones loading up here.

[mick113] 07/2/2017 21:24

Profit figures @ current oil barrel price is huge if say we hit 700bopd,1000bopd,1500bopd,etc by year end. As we all know oil price by year end is to be above $70 barrel easy.

[mick113] 07/2/2017 21:19

Nice reversal today, will be buying more tommorrow now as its in breakout mode! So do not mind averaging up. Short term target pre work over news 15p-18p. If workover is successful which 90% it will be, this could fly IMHO.

[barnetpeter] 07/2/2017 16:32

Zenith Energy (LON: ZEN) are a cracking small oil and gas production company operating out of Azerbaijan, they have a main market listing, their CEO is a man called Andrea Cattaneo . They are currently producing 300bopd with cash revenues filling the company coffers on a daily basis. That production is set to triple in the coming months post work-overs. It could be over 1,000 bopd by the end of the year. They operate one of the largest onshore fields in Azerbaijan. What most investors/traders have missed is this; the ZEN asset base also holds an asset called Zardab. This asset was on it’s own producing 500bopd until the well collapsed. That well will be brought back onto production so in effect over the next 12 months ZEN could be producing close to 2,000 bopd, post successful work-overs and re-drilling of Zardab. This means that the share-price will undoubtedly have an astronomical rise and could hit the heady heights of 40p-50p. Why is this important? Read on…

[thelung] 07/2/2017 16:31

Haha - its 10p now and the Convertible note holders are converting and selling into the market....but fingers crossed their 3,700,000 shares are now in the price...ready for the next batch

[shammytime] 07/2/2017 16:18

I told you all 15p this week. I'm a money magnet and you suckers know it. Boo yaaa!

[cpap man] 07/2/2017 15:05

Yes TheLung....a KEY DAY REVERSAL at ZEN

[thelung] 07/2/2017 14:29

Nice reversal.

[daniel levi bmd] 07/2/2017 12:55

It's a TAKEOVER ATTEMPT

Exposed Optiva, Lenigas & Gunsynd. Takeover Plot of Zenith Energy!

Dan
x

[thelung] 07/2/2017 12:26

I'm liking the look of ZEN but have they only listed on LSE for the increased liquidity which allows them to clear their debt by issuing to Convertible Note holders who wouldn't have otherwise been able to sell their conversion on TSXV?

[mick113] 06/2/2017 15:22

Buy the dips & placement was only 9m shares so we could be blasting very soon.

Truly undervalued compared to peers or not even producing or have the massive assets we have.

[hearts1] 03/2/2017 22:48

Done very well given the placing. Still think this will be one of the stars of 2017 and at least a 3 bagger.

[shammytime] 03/2/2017 11:37

Yep almost certain to be close to 15p early next week

[shokty] 02/2/2017 15:18

Last day of sub 10p me thinks ...still
Think this stupidly undervalued so will
Continue to accumulate

[x54v] 02/2/2017 12:28

Coverage here today (from 16:15):

[zengas] 02/2/2017 12:12

At this £10m m/cap (10.125p) Zenith really has potential to surprise and it's already a producer which many at this m/cap can't lay claim to.

Some more from Beauforts note - read down to well 130 ie produced at 10,000 bopd and produced 650,000 bls in 1 year (before failing)so equivalent to almost 3600 bopd for 1 year or 1800 bopd average for 2 years.

"Azerbaijan production is currently circa 300 bopd and rising rather than declining due to simple maintenance and the high pressure, low decline, nature of the field (average decline rate is 4-5% per annum). The 300 bopd generates circa $150k of free cashflow to Zenith’s Azeri subsidiary.

Substantial 2P reserves and 145 drill locations
Zenith’s independent consultants calculate gross 2P reserves of 76 million barrels, of which 33 million are net to Zenith post the SOCAR profit share. 80% of these reserves are Probable Undeveloped from 145 drill locations.

1,000 bopd by early 2018
The investment case is based on multiple drilling and workover opportunities which should result in a much greater production uplift. Management is targeting 1,000 bopd before end 1Q18 from workovers, while we believe drilling has the potential to turn Zenith into a 3,000 bopd plus business within three years.

Exciting IP rates, slow decline
Well 211 drilled on the main Muradkhanli Field demonstrates the high initial production and low decline rates of the area. Drilled in 1981 it initially produced over 2,000 bopd and after 18 years in 1999 was producing over 1,400 bopd before production stopped quickly and dropped to sub 50 bopd, probably due to a well collapse. It still produces a few barrels today and is a potential recompletion or side-track opportunity.

1. Despite the main Muradkhanli field reservoir being fractured volcanic rocks, horizontal drilling has never been attempted

2. Having taken operation control in August last year, Zenith has succeeded in increasing production by 25bopd through simple maintenance

3. Three wells at Zardab produced over 500 bopd each but plugged with sand from the reservoir. This occurred in 1985 but no concerted effort has been made to recover these productive wells

4. No drilling has been undertaken for 15 years despite the substantial remaining reserves

2017 work programme – started this week
Zenith’s 2017 work programme is designed to improve current operations through simple workovers and to determine the best technology for cleaning out one or more of the Zardab wells.

Not including the Zardab workovers, the CPR identifies 44 workover opportunities across the licence area. Management plans to complete 20 workovers over the next 24 months.

Last week (24th January) Zenith announced it had signed a workover contract and the workover rig is expected to start operations this week. M-195 and M-45 are the first workover wells.

2017 programme:
Muradkhanli up to 7 workovers including M-195 and M-45
Jafarli up to 2 workovers
Zardab 1 workover - more complex well clean-out work

Workovers and drill locations
In addition to reserve calculations, the Competent Persons Report identifies 44 workover opportunities on non producing wells and 33 prime drill locations on proved undeveloped reserves. It describes a further 112 probable undeveloped well locations.

Well 130 – this is what could happen…

The CPR assumes average initial production of 120 barrels per day from vertical wells and 500 barrels from horizontals. This is reasonable given variability between wells, however we don’t feel it properly reflects the potential very high productivity of the Muradkhanli Contract Area reservoirs.

Well 130 drilled at Muradkhanli Field is a good example. Drilled in 1985 (15 years after first production), initial production was a modest c.100bopd, however within 24 hours production increased to 10,000 bopd as an uncontrollable gusher. Local farmers quickly built a sump and the well returned to normal production 25 days later. It then failed 1 year later having produced 650,000 barrels of oil.

The Zardab area – high production workover opportunity
In the 1990’s 18 wells were drilled in the Zardab area - five were successful, one produced (and still produces) and two produced but plugged-up with sand within a week. Significantly, the two plugged wells produced over 500 bopd during their short lives. Bearing in mind the slow decline rates and overall productivity of successful wells in the area, these wells have the potential to be very significant for Zenith.

Under the lake and horizontal wells
In addition to multiple infill opportunities which are currently envisaged as vertical well locations, the CPR has identified 58 horizontal well locations. Many of these sit under a shallow lake which SOCAR didn’t attempt to drain. Zenith will drain the lake and, if it sticks to the CPR work programme, will drill 10 horizontal wells."

[marmar80] 02/2/2017 12:02

Haha good one

[topazfrenzy] 02/2/2017 12:02

Beaufort Securities now have a 31p target on this one, as stated above. Follow the money supposedly ...

[cpap man] 02/2/2017 11:00

Zenith Energy (ZEN.L) - Speculative Buy at 10p (Target Price: 31p)



Zenith has an 80% interest in three oil fields onshore Azerbaijan, collectively called the Muradkhanli Contract Area. Current production is circa 300 barrels per day from 65 wells, 81% of which produce under natural pressure.

Through simple workovers, management is targeting up to 1,000 bopd by 1Q18, an ambitious but feasible target due to many years of suboptimal field management. The more exciting workover prize is from five wells in the Zardab Field. Two of these each produced >500 bopd before plugging with sand within 1 week. Zenith is targeting 200 bopd from the five Zardab wells which appears conservative.

New drill targets on the property are Zenith's most valuable asset, consultants estimate 76 million barrels of gross 2P reserves. Targets include under a lake where large areas were not drilled and multiple infill locations across the 642km2 licence. 2017 will be dominated by workovers and we expect the first new well in 2018.

The workover programme starts this week with M-195 and M-45. There is plenty of newsflow to look forward to and we initiate coverage with a 31p price target and SPECULATIVE BUY recommendation.

Read the full report....