Zenith Energy Share Discussion Threads

[sja123] 20/2/2017 13:35

Presently producing 300 bpd

50 x 15 = 750...

Some will do better than 15 imo....historically, this field has produced between 9000 & 15000 bpd...with modern techniques and equipment deployed, 1000 bpd is a minimum I would expect over time...

All IMO etc

[scotty666] 20/2/2017 13:33

Perhaps includes production from 1 of the Zardab wells? See second paragraph;

[thegreatgeraldo] 20/2/2017 13:13

ZEN, The co's got 50-odd wells knocking out an average around 5bopd.. they've stated they plan to work over nearly half of them initially to get them up to the 10-15bopd range. Where does your 1,000bopd (gross, presumably) come from?

[thetoonarmy2] 20/2/2017 12:39

That 250k buy was me also trying to get another 250k not wanting to chase it the has got to be a no brainer along with Trinity as well And Ravin hopefully PTR?

[okuta] 20/2/2017 12:25

A 250,000 shares - 30,000 pounds purchase gone through , good .

[zengas] 20/2/2017 10:14

PPC finally got their contracted rig on site today to start 10 workovers in Argentina. Looking to grow it from 500 bopd to 1200 by end of summer. Has an additional 200 bopd in the US so total current bopd is circa 700. Total P2 is 18 mmbo and m/cap is £70m.

Plan is to hopefully go on to further develop and drill exploration wells once it gets the cash flow up.

Zen have a starting point of 300 bopd, one rig contracted and one rig owned so should halve the 1,000 bopd target from Q1 next year to end of Q3 this year possibly, given it was based on having just 1 rig.
33 mmbo P2. M/cap £14.5m @ 12.75p.

Same plan - get cash flow up, drill development wells and then exploration potential. Big difference in value comparison and the 31p/42p Beaufort/Align Research target prices show that.

Now if they get cash flow up and perhaps add a further regional producing asset, then the bopd numbers might be quite different to the 1,000 bopd they were targeting.

Beaufort on page 16 said they expected the Argentine asset to be sold in their 2nd February coverage - I didn't expect it just as soon. They also said they would not be surprised if they achieved 3,000 bopd production.

Remember the poster who said the exercise of warrants which are in the current range can bring in $9m cdn and what would they do with it ??? Fully diluted this would still leave the company at just £22m m/cap.

[cashandcard] 20/2/2017 08:58

"Zenith will also be able to evaluate the acquisition of additional production opportunities in the European and Caspian region"


It makes sense to continue building the Azerbaijan hub, not just organically but through good acquisitions. I like it.


Cash

[effiert] 20/2/2017 08:12

ZEN nice rns "dont fight on too many fronts" just focus on the main asset in azerbaijan bring it on!

[sja123] 20/2/2017 08:00

From the prospectus...

The Company’s intention is to use the Net Proceeds of the
Placing as follows (in order of priority):

Use Amount (GBP)
Repayment to Jiu Feng Investment
Hong Kong Limited 567,070
Argentina workover programmes 38,885
Italy workover programmes 128,025
Azerbaijan – facility and systems upgrades 40,505
Azerbaijan – workover programmes 60,757
Working capital 1,180,680
–––;––̵1;––
Total 2,015,922

I make that an additional £40,000 or 40% more cash than originally planned to advance their program in Azerbaijan...

...and as Argentina was going nowhere, seems a sensible move imo...

[cpap man] 20/2/2017 07:52

ZENITH DIVESTS ARGENTINE OPERATIONS



Calgary, Alberta, February 20, 2017, Zenith Energy Ltd. ("Zenith" or the "Company")

(LSE: ZEN: TSX.V: ZEE) the dual listed international oil & gas production company is pleased to announce the sale of its operations in Argentina to a group of local energy investors.



The Company acquired the Don Ernesto and Don Alberto fields in July 2010 and, following a systematic programme of operational improvements and cost reductions, was successful in achieving substantial increases in oil production and profitability. Zenith also demonstrated that there was significant potential for further field development.



Unfortunately in August 2015, due to a series of circumstances beyond the Company's control, production at Zenith's Argentine operations was suspended. This was caused by the collapse of a major storage tank owned by Yacimientos Petrolíferos Fiscales ("YPF"), Argentina's national oil company. This meant that Zenith's production of oil could no longer be transported through YPF pipelines, resulting in the suspension of production in the Comodoro Rivadavia area where these fields are located.



To date, the issues affecting the transportation of oil have not been fully resolved and a persisting uncertainty on the recommencement of operations has led Zenith to reconsider its operational involvement in Argentina.



The sale of the Company's Argentina subsidiary has been fixed at a nominal sum in recognition of the costs the new owner is expected to incur to return these fields to production. In addition, Zenith will no longer be liable for any environmental responsibilities or future well abandonment obligations for the Don Alberto and Don Ernesto fields.



Termination of activities in Argentina will enable Zenith's management to more effectively direct its focus on its Italian operations and especially towards Azerbaijan, where the Company's most important assets are located, and where a systematic programme of field rehabilitation has begun. This re-alignment reflects the Board's aversion to operational overstretch and the Company's preference for a strong, concentrated focus towards the achievement of its production objectives in Azerbaijan.





Andrea Cattaneo, Zenith CEO, commented:



"The disposal of our activities in Argentina is a strategic move. This will enable the Company to positively recalibrate its operational footprint in a way that coherently reaffirms our Italian energy production interests and specifically the primary importance of our transformational opportunity in Azerbaijan. The risk of overstretching where the management team is active on too many fronts is now reduced.



The Board of Directors and the management team will now be in a position to direct undistracted attention to the Company's primary objectives of achieving incremental production increases in Azerbaijan and continuing stable energy production activities in Italy.



Zenith will also be able to evaluate the acquisition of additional production opportunities in the European and Caspian region, building on the momentum of its recent progress to further support the Company's continued expansion."

[barnetpeter] 19/2/2017 21:29

Ravin...I told you I had a big enough stake but also traded this to add to that. I think this breakout is huge and I see lots of people saying they want to buy these. The price is higher in Canada 🇨🇦 so we have a bit to catch up on. Seller cleared too I think ...a lot of new companies on the mkt don't last long but are snapped up early and I suspect zen might have had an offer. Just my view.

[effiert] 19/2/2017 20:57

ZEN workover news due on two fronts which should see it gather pace towards 20p levels for starters. CEO taking salary in shares

[ravin146] 19/2/2017 19:40

Barnetpeter I thought you are here for 15% LOL

[barnetpeter] 19/2/2017 19:02

17pence this week?

[cpap man] 19/2/2017 13:25

POST 8261 on fingers xxd [FXD] chart thread reference ZEN

[hearts1] 17/2/2017 20:37

14p on TSX.

[barnetpeter] 17/2/2017 17:58

There were rumours here of a bid....something to do with GUN. Doubt it.....but you never know. It looks a bargain in fact if you consider what some aim rubbish is valued at. So I would not be too surprised by this rally being based on a bit more than "its cheap".

[thegreatgeraldo] 17/2/2017 17:33

Interesting play in Azerbaijan, I'll wait to see if they're under promising on well workovers. If they treble production to 15bopd on the first one, can't see the share price running away. OTOH, it'll be interesting to see what state the old wells are in.....

[ravin146] 17/2/2017 17:27

Great finish, prob more buys than sells than yesterday.What this company would now love is some press coverage. Though not a requirement.Toon ptr rose too and now on breakout territory!Gd wkend.

[hearts1] 17/2/2017 16:49

Solid finish, it really is holding gains the last few days. Should be enough momentum to keep it as results from the first WO come in.

[aggieuk] 17/2/2017 16:32

Another good day, hopefully another of many to come. We're on our way to riches boys and girls!

[ravin146] 17/2/2017 15:38

Ptr will have its day, another great potential stock. just lacking the PR that ZEN has. It will get back to 6p imo. Not usre why it is rising atm tbh.

dyor