Zenith Energy Share Discussion Threads

[ravin146] 28/3/2017 20:50

This is a Zen bb, we got your point now tim, cya

[timw3] 28/3/2017 20:48

AAOG !!
ZENGAS17 Mar '17 - 16:08 - 170 of 221 4 0
Nothing wrong with what the directors intend to do but I would have preferred an ambitious outfit to seek more assets if they get the kind of production and very near term cash that they believe could be possible here.

I could see the reasons for this being a really attractive takeover and you don't need the Djeno to ultimately come in - all you'd need is to successfully develop the Mengo discovery to get your hands on significant cash flow.

Infrastructure in place (No spend needed).
Already producing and any new oil would go straight on to production.
Oil production currently from one of the three Point Indienne reservoirs.
Oil found in the Mengo and should produce on fracking/acidisation.
Oil in Djeno analogous nearby fields - so high possibility for same here given reservoir is estimated 350m below Mengo.
Could result in high level of reserves if successful.

Directors intention to pay significant dividend return to shareholders.
With oil at $50/b and an opex of $5 (at 5k bls/day), they should be making $30/b profit and if 5,000 bopd net was acheived would result in $55m (£44m) per year of which they planned to pay about 75% in dividends which might be around £30m/year and over the fully diluted shares could be about 37.5p/year per share.

Given the directors don't seem to have any intention to seek other assets, i'm sure there's plenty of companies that would like to get their hands on that kind of cash flow rather than see that level of cash/dividend going back to shareholders. They could buy further assets and potentially build a much, much bigger oil company. The drawback is knowing if the Djeno has oil ? Saying that they could get the same level of cash flow from the Mengo but the reserves wouldn't be as high for the longer term but still very attractive.
If they establish oil in the Djeno and on the broker note valuation for £190m based on 25% success rate that's in to 240p territory fully diluted.

Very short window to know the 3 stage outcome given the director said they plan to be finished late August/early September on all 3 target zones.

[ravin146] 28/3/2017 20:47

Tim great story, cya

[timw3] 28/3/2017 20:31

Been telling you guys that AAOG is a far better investment, Directors interests alligned with share holders. £750 drill in may and short term workover to get the share price moving. Will explode in the coming days/weeks when overhang has gone!

[thegreatgeraldo] 28/3/2017 19:58

Why not just ignore that clown? Converting notes into equity is good for the BS... simple really.

[ravin146] 28/3/2017 18:05

I'll be surprised if news is not out this week after CEO commenting last week that it'd be several days

[cottoner] 28/3/2017 13:31

wrong thread I presume. :-)

[pally12] 28/3/2017 13:11

Expect a blood bath tomorrow as brexit nears

[scotty666] 28/3/2017 13:09

coscos I think he meant 2018.

[currypasty] 28/3/2017 13:02

bmd ramp over ?

[coscos] 28/3/2017 12:58

What a nonsensical blog by BMD. 1200bopd by March 2017? How exactly?

More like International Blagger of the Year.

x

[coscos] 28/3/2017 12:53

As I was saying.....

[scotty666] 28/3/2017 12:50

Brilliant I cant wait for GUN with their 1.5M mkt cap and 3M asset value to take over Zenith ... come on!!! Also the production increase you flag is what investors are expecting to be announced this week regardless of your blog post.

[thegreatgeraldo] 28/3/2017 12:45

That's a pretty depressing reflection on ADVFN

[daniel levi bmd] 28/3/2017 12:38

ADVFN International Finance Blogger of the Year speaks.. lol!!!


Zenith Energy Set to announce 250%-500% increase on 1st workover!

Dan
x

[cpap man] 28/3/2017 12:31

He most probably is as well as being a former bank robber but he does have the ear of those that count including DL

[thelung] 28/3/2017 12:28

tgg, those are also my expectations based on public info from AC (so not so much of a BMD scoop so to speak!)

[coscos] 28/3/2017 12:22

BMD is a moron. Ignore.

[thegreatgeraldo] 28/3/2017 12:13

M-195 had been producing 5bopd, so is broken Dan suggesting 17.5-35bopd after the workover?

[aggieuk] 28/3/2017 12:07

Brokerman has released his news, he reckons 250-500% increase on M-195 but he's said nothing about the new pumps installed by the a team. Reckons DL and co are stilll after the company and Andrea is still chasing some money making assets. Just need to wait for an rns now to confirm or deny.

[thegreatgeraldo] 28/3/2017 11:56

Oh dear....broken Dan!! Some flush production of 60-80bopd from M-195 before settling at 40-50bopd would do me.

[thelung] 28/3/2017 11:34

aggieuk it's looks like his own scoop at 12, as opposed to official news from ZEN but thanks for the heads up. BMD was the first person to ask a question on the Qly results call.

[aggieuk] 28/3/2017 11:20

Hopefully we won't be waiting too much longer that bloke BrokermanDan has tweeted saying something about news at midday, but he's said this a few times now from memory ref zen and nothing major came of any of it. But let's see, he has had a few scoops before now.

[thelung] 28/3/2017 11:18

I can't disagree with the theory or the long term potential so apologies if it comes across as having ago - but i'm aware of posters' previous form on other stocks.

I'm being realistic as opposed to dreaming.

I'm also expecting all 4 current work overs to be announced together in mid April.