Zenith Energy Share Discussion Threads

[ravin146] 10/4/2017 11:22

Zengas...it is clear a simple on today's RNS...the pump update is not part of the programme...hence it is a BONUS to production and great news."It should be noted that a pump replacement should not be compared to a well workover with regards to its production upside potential. These pump replacements are not included in the workover programme and the main focus has been the trialing of Zenith's newly refurbished workover rig."I.e testing the refurbished workover rig was a great success!

[bad gateway] 10/4/2017 11:15

Bought a smaller amount back with the share price being at the bottom of the bollingers and looking quite so oversold but not convinced I wouldn't have been better off waiting for the M-195 to come in.
Still can't shake the feeling that telling holders they've decided to go down the nonsubbie route is preparing us for some disappointment there.

[zengas] 10/4/2017 11:13

Just checked and the production from pump installations was not part of the workover programme.

From Beaufort 2nd Feb. The 2017 10 well workover programme was -

* Muradkhalni - up to 7 workovers including M-195 and M-45.
* Jafarli - up to 2 workovers.
* Zardab - 1 workover.

Those 10 workovers would indicate an average of 70 bls/well out of a total 64 well workover options.

"The workover programme starts this week with M-195 and M-45" - just over 8 weeks ago.

So still in progress and the increased production today from the pump installations is outside of the 1,000 bopd 12 month target.

Beaufort also stated - "Current production is circa 300 bopd from 65 wells, 81% of which produce under natural pressure". Therefore 52 without pumps and 13 with ? Those are the producing wells but there are others shut in/not producing from the total 189 drilled - although all not successful, overall it indicates plenty of well stock for further pump work outside of the workover programme.

[rameshh] 10/4/2017 11:05

Time for topup at these levels...AC will deliver this week!

[thegreatgeraldo] 10/4/2017 10:41

The 2 extremes for M-195 are that they're currently choking the well back to control flush production & will report when production settles or that the well is really knackered. Probably somewhere in between. The optimist in me recalls that the well was doing 100bopd before it broke ....

[zengas] 10/4/2017 10:34

From the RNS: "These pump replacements are NOT included in the workover programme"

If so then this increase is outside of the companys 1,000 bopd workover target.
Question is, how many more can benefit from pump replacements or pump repairs - another 15-20 wells across the high number of wells on the 3 fields could theorectically add in a further 50+ bls and not to sniffed at. If these are also outside the workover target, then it's very welcome.

"I can also confirm that an update regarding the workover of well M-195 will be provided during the week." Doesn't necessarily mean it will be completed this week but credit to the company for communicating with investors and lets see where we are after this and with further workovers kicking in we should hopefully gradually move forward.

[daniel levi bmd] 10/4/2017 10:20

FYI

Saffron Energy RNS Imminent! Gas flowing! Confirmed!

Dan
x

[ravin146] 10/4/2017 10:13

Zengas, agree entirely, now going forward...-Remove the competitive nature between the teams-Avoid the social media podcasts temporarily, that worked in the past has been effective and done its job for now. Though I really appreciate the social media aspect, along official regulatory RNS's-Deliver the workovers results-Note the inexperience of one of the team was noted at the start, the whole point the training exercise was carried out and thankfully successful. Hence the low budget they have.Have faith, let's see the news later this week...Imo

[ravin146] 10/4/2017 10:05

Toon...You are a long term poster on bb's and hope you understand my views. I don't bullshyt. A few points to summarise, but most importantly all my views are based on doing research on social media posts by the CEO on podcast and presentation in between gaps of official RNS regulatory news. The podcast are not regulatory as they do not provide price sensitive information and is merely an update on progress.1) I noted on many occasions, on the back of listening to the CEO's podcast that he said he will update the market once the pumps were installed, last week at which 2-3 were completed (now it appears the my completed 4) and he mentioned this will be alongside the 195 workover - a few posters here continually posted complete rubbish that the company had encountered delays on 195?! Where is their source?! The CEO stated first the training exercise with the pumps and then 195 update- confirmed in today's RNS!2) I noted on many occasions that this is not AIM!...it can't do much more dilution I.e fund raising - it doesn't need to as much of the programme is priced in from cash flow from production increases alongside low budget and b/e is low too - yet a few posters continually state rubbish on dilution.3) you are a seasoned poster here on advfn, personally i do not have time reading through shyt loads of repetitive speculation nor post all day. Facts based on RNS and social media post I'm happy to discuss. Other 'fake news' and pure speculation or stating a well has encountered problems on no research basis or is not publicly known info, I'm not interested! Hence I filter. Everyone has the right to do so. On some occasions I do prefer private posts as some bb's are all rubbish.4) ZEN has a long term project to increase production. First phase is workovers on a low budget to boost cash flow and then begin drilling.Let's wait and see the first w/o result. The CEO has been very transparent, honest and confident. He wants to be careful to get it perfected. He has delivered so far, big week indeed!Gla, imho. Always dyor as most here is pure speculation!

[thetoonarmy2] 10/4/2017 10:04

Well said ZENGAS.

[zengas] 10/4/2017 10:02

I thought the RNS poorly worded also and have told them the Team A/B competition style is pointless and installing pumps to graduating to a a fully fledged workover team isn't the best for investor confidence. No room for staff that are learning the game. Get the oil out of the ground efficiently using the right people - end off rather than turn it into some kind of competition. Just give them a decent incentive to achieve consistent results. Also cut back on podcasts now the message is out and deliver results as those will speak for themselves regardless of any interview.

Plus side is - it is an increase and in the right direction and plenty more wells to come, but the actual workovers where there are expected material increases are what will really count especially in shut-in or repairable wells. My hope is that as they say - the workovers start to 'gather momentum'. Company management feeling its way imo with how they deal with news. With Gunsynd possibly still sellers on a day with not earth shattering news for some of the hot money here that want more results and faster than their timescale imo, it's put pressure on the share price as a result.

Is the arrival of the actual drilling rig getting closer, given further mention of it this morning ?

[thegreatgeraldo] 10/4/2017 09:50

I'm in a generous mood this morning, let's call the RNS underwhelming.

[snickerdog] 10/4/2017 09:12

Just have to let them get in with it, there's what something like 80 wells in disrepair there with various things needed to be looked at. Might have made too much of this training team A but company is at least transparent with what they are doing. Probably some of these wells need completely new holes. Arrival of their own drilling rig very much of interest - be able to punch holes all over the place - remember that reserves of 70m under there

[rameshh] 10/4/2017 09:08

Oakville, who was your source, are you connected to AC?

[dipla] 10/4/2017 08:56

Workover result during this week...AC did mention he wants to get the w/o correct and perfected.Big week for ZEN, time for another top up!

[cashandcard] 10/4/2017 08:47

I think the update is a positive on two fronts. Firstly, the small increase in production from pump replacements shows the wells certainly can do better than they are. The introduction of modern techniques, equipment and methods on an old field can go a long way, so when full workovers are undertaken we should see a (substantially?) higher rate of production. Secondly, and more importantly (for me atleast), they are making headway with the Chinese drillrig negotiations - Amen to that! I would happily ignore the WO's as a sideshow/bonus if they could get some new, optimally placed wells drilled on the field. That is when shareholders here will see real excitement and potentially, NO almost certainly, massive value creation. There are 33mln bbls 2P - and hundreds of millions in resources, potentially billions on ZEN's licensed blocks in the area. The exploration/appraisal potential is mindboggling!

Cash

[cpap man] 10/4/2017 08:40

Andrea Cattaneo, Zenith CEO, commented:





"It is very encouraging that Zenith's internal field rehabilitation team operating the Company's fully owned workover rig, named Team A, has succeeded in its introductory activities by undertaking relatively simple submersible pump replacements that have increased production from the wells. These activities also had the objective of assessing the technical capabilities of the Team and their modus operandi. The speed and efficiency of Team A has been impressive.



The Board is increasingly of the view that the use of the Company's own personnel and equipment for its field rehabilitation operations is the preferred choice going forward as opposed to sub-contracting fieldwork to more expensive third party contractors. The recent success of Team A further reinforces the merits of this position. Team A can now graduate to become a fully-fledged workover team and begin the workover of well M-45.



This reflects our guiding principle of being a low cost operator. The use of the Company's resources is always evaluated in consideration of this budgetary model. Zenith's 14bopd production increase achieved from pump replacement activities, whilst a relatively small number at first glance, is of greater importance if one considers the increase in revenue resultant from production relative to the extremely low operational expenditure incurred by applying the Company's own resources to achieve this result. The cost-benefit aspect of Zenith's in-house field rehabilitation operations should therefore not be overlooked.



I am also pleased to report that the Company is making progress in its negotiations for the acquisition and financing of a high-specification Chinese drilling rig. The arrival of this drilling rig will allow the Company to begin a systematic drilling campaign that would be highly cost-effective and underpin the Company's projected long-term production increases in Azerbaijan.



In the interests of clarity it should also be underlined that the workover programme will continue with growing momentum in the period before the drilling rig arrives and will then run parallel to the drilling programme to maximise oil production from the field.



I can also confirm that an update regarding the workover of well M-195 will be provided during the week."

[coscos] 10/4/2017 08:24

Team B have either encountered serious problems or they're on a go-slow to make as much cash as possible from the company. That's my impression of AC's comments this morning.

[ravin146] 10/4/2017 08:15

Great update, with more to follow on the important work over of 195 later this week.Patience is rewarded, will top up later!

[aggieuk] 10/4/2017 07:54

14 BOPD increase for the pump replacements, which is nice, we weren't expecting too much from pump replacements, however it's a little suspicious of the mentioned M-195 'update' during the week, I was expecting the actual numbers not an update!

[bad gateway] 10/4/2017 07:45

Not the news the share price needed imo whether they're pleased to report it or not. Stock lost the 50d Friday lets see if the 200d and trendline can hold today.