Zenith Energy Share Discussion Threads

[muddy_40] 18/4/2017 13:04

CEO: Canada’s Zenith to start drilling operation in Azerbaijan in 2018 (exclusive)

The drilling operation of Canada’s Zenith Energy Ltd at Azerbaijani oil fields will start in 2018, the company’s CEO Andrea Cattaneo told Trend.

Azerbaijan’s Muradkhanli, Jafarli and Zardab oil fields are controlled and operated by Zenith Aran, Zenith Energy’s wholly owned subsidiary in the Country.

"We have been operating in Azerbaijan only a little more than six months. We are fulfilling all of our commitments to develop this activity in the country," he said. "The company will bring one of the biggest rigs from China for onshore drilling activities here. We will have this rig before the end of 2017 and will start the drilling operation in 2018."

Zenith Energy believes that with drilling of a variety of new wells and related activities such as seismic exploration and technology development, the Muradkhanli field, which is the biggest onshore oilfield in Azerbaijan, will prove very profitable.

"We are creating an overseas team that brings innovative ideas from abroad, as well as technologies from Canada. We are therefore confident to show the results achieved by our input of technological development in the next two or three years," he added.

Cattaneo noted that the Company’s operation in Azerbaijan’s oil production arena has only just begun and will include some innovation.

[thegreatgeraldo] 18/4/2017 11:36

So, the wellstock doesn't look too good.

[rameshh] 18/4/2017 11:29

For those reading here , have just sent a pm.Have a gd day

[cashandcard] 18/4/2017 11:04

Aggie,


I think the sheer scale of downhole problems (due to the old subsurface data, poorly imaged thus poorly mapped well locations followed by awful completions and maintenance) has only now been realised. In some wells, they cannot just WO according to plan but will have to sidetrack & drill into new areas of the reservoir to avoid the problems altogether and complete to a modern standard. Its actually a BIG step in the right direction.


Cash

[aggieuk] 18/4/2017 10:56

Agreed cashandcard Andrea talked this up big time then completely flopped. Very similar to a fat aussy chappy we all know!!! Very disappointed with this, it seems PI's aren't even safe investing in 'main listing' shares either!

[cashandcard] 18/4/2017 10:30

Its all well and good having lots of Irons in the fire, but AC needs to start on the delivery front. The drilling into a new undisturbed section of M-195 could well see this deliver the result we need it to. I'm cautiously optimistic, here's hoping.

Edit: If they have similar problems at the other wells, as long as its cost-effective, I would like to see them do the same in those wells to. Fresh production from an undisturbed reservoir section - amen!


Cash

[barnetpeter] 18/4/2017 10:15

Did not expect this to be back below 10p. Chart looking ugly....could break below 9p if weakness continues this week. Would be a buyer at that price.....but no rush

[grannyboy] 18/4/2017 10:12

Its strange that the likes of Dipla, robg88, and not forgetting ravin(lunatic)have disappeared and made no comment on todays rns's...Must be privately messaging each other?....

In fact as i stated last week, that some posters could be company insiders, or working for broker..While they were slagging other posters off, were these creatures selling their holdings down last week?.

[rameshh] 18/4/2017 10:00

Just topped up...The news is ok, drilling at new point for well 195, is somewhat good news long run if the current direction had obstacles. Saving money.Workover now working in parallel so, a lot more news to come and digest...Yet to have BOPD numbers...I am holding med to long term, silly to sell now. Must be the ST holders losing patience!

[grannyboy] 18/4/2017 09:12

I did say in one of my earlier post that it would've been better just to have drilled another well...This sidetrack into new oil should be the next best thing, and the bopd produced should be well rewarded..

[coscos] 18/4/2017 08:53

Not surprised with the disappointing news today but do think if they get the sidetrack right then results will be much more impressive. Plenty of news to come here still.

[2nell] 18/4/2017 08:51

Poo well over 50D now so this will help with the side track costs, not surprised by this but should give us a much bigger return over a longer period.

[grannyboy] 18/4/2017 08:41

The sidetrack should, IF they get it right this time produce a sizeable set of production numbers, which should be in the hundreds of bopd from M195, its now a matter of waiting 2/3 weeks for the completion of M-195, not sure how long M-45 will take because they've to replace casing etc, and any other blockages.

[cashandcard] 18/4/2017 08:32

granny,


I'm strongly of the opinion new subsurface data and fresh drilling is required to out the true value of these fields. The workovers are an irritating sideshow to this. They could not get that Chinese drillrig in quick enough.


Cash

[grannyboy] 18/4/2017 08:19

A disappointing initial update from M-195, but the side track into new oil should give a good uplift to production figures..IF the statement from Dr Dario Sodero is to believed..


The barrels produced should be in the hundreds..And needs too be because if they keep encountering more of these obstacles at anymore wells they'd never get to their target of 1000bopd by next March.

Lets hope there's not to many problems at M-45..

[cashandcard] 18/4/2017 07:51

Clearly, it's a problematic downhole situation at M-195. I welcome the plan to avoid it (saving time and money) and kick off a small sidetrack section from an undisturbed section of the well. Nothing better than fresh drilling as they will be in a stronger position to complete the well properly.


Cash

[bad gateway] 18/4/2017 07:19

Do wonder how much this sidetracked well will cost them before its done. Hope its worthwhile if/when its finally completed.

[11smith] 13/4/2017 20:57

I looked back over the old news announcements on TSX.V in Canada. This came to light. ... news July 24th 2015 - (exact copy from public domain)

Zenith Announces Amendments to 2014 Annual Financial Statements

NEWS RELEASE

FOR IMMEDIATE RELEASE

(TSX.V: ZEE)

Calgary, Alberta / TheNewswire / July 24, 2015 / Zenith Energy Ltd. ("Zenith") (TSX VENTURE: ZEE) announced today that it is proposing to amend its audited consolidated financial statements as at and for the year ended March 31, 2014 (the "2014 Financial Statements").

All items are limited to the 2014 valuation of the Italian production and exploration properties acquired by Zenith during 2013. In particular, management identified the following errors related to the 2014 Financial Statements which will be corrected retrospectively in accordance with IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors":

On June 6, 2013, Zenith completed the acquisition of various working interests in 13 Italian producing and exploration properties from Medoilgas Italia S.P.A. and Medoilgas Civita Limited, each a subsidiary of Mediterranean Oil and Gas Plc. (the "Acquisition").

Zenith used a spot-rate rather than a credit-adjusted rate in the calculation of the fair value of the decommissioning obligation of Zenith's Italian assets on the Acquisition date. The restatement of the 2014 Financial Statements for this error resulted in a $918,361 increase in property and equipment, a $7,580,941 reduction in decommissioning obligation, a $2,337,308 increase in deferred tax liability, a $326,502 reduction in accumulated other comprehensive loss and a $5,835,492 reduction of deficit related to a corresponding increase in the gain recognized on the Acquisition.

Zenith did not include certain pre-acquisition capital expenditures related to the Italian assets in the Acquisition. The inclusion of these pre-Acquisition capital expenditures in the Acquisition resulted in a $390,354 decrease in property and equipment ($23,545 relates to foreign currency translation), a $96,837 decrease in deferred tax liability, a $28,224 increase in accumulated other comprehensive loss and a $265,293 increase in deficit related to a $4,679 decrease in depletion expense, a $265,936 decrease in the gain recognized on the acquisition and a $4,036 reduction in the recovery of income taxes.

Based on a change in the discount rate used in the fair value measurement of the decommissioning obligation on the Acquisition date to a long-term risk-free rate based on the expected timing of cash flows of the decommissioning obligation under IAS 37 (Note 8), there was a $4,814,501 increase in the decommissioning obligation associated with the acquired assets (comprised of a $4,621,935 measurement adjustment and $192,566 of foreign exchange) and a $1,271,032 decrease in the deferred tax liability offset by the recognition of a corresponding $4,621,935 measurement adjustment, a $1,271,032 increase in the deferred tax recovery and $192,566 decrease in exchange differences on translation of foreign operations in the consolidated statements of income (loss) and comprehensive income (loss).

Zenith miscalculated the year end decommissioning obligation which, combined with the impact a revision to the long-term risk free rate, resulted in a $2,211,931 reduction in property and equipment, a $3,348,815 reduction in decommissioning obligation, a $122,060 increase in deferred tax liability, a $1,124,846 reduction in accumulated other comprehensive loss and a $110,022 increase in deficit related to corresponding changes in depletion, accretion and deferred tax expense.

Notes 8, 9, 15, 16, 20, 21 and 28 to the March 31, 2015 consolidated financial statements have been restated to reflect the adjustments described above.

To summarize, the correction of the errors to the 2014 Financial Statements resulted in a $1,683,924 reduction in Zenith's total assets for 2014, but a corresponding $5,023,756 reduction in Zenith's total liabilities for the same period. Shareholder's equity increased by $3,339,832 from $2,236,370 to $5,576,202. As a result of the adjustment of the Comprehensive Income, the profit has been increased by $3,339,832 from $3,646,894 to $6,986,726. Accordingly, net income per share on a basic and diluted basis has increased by $0.24 from $0.48 to $0.72 for 2014. The correction of the errors to the 2014 Financial Statements had no impact on Zenith's reported net cash flows from operating, financing or investing activities.

Zenith has controls and procedures that are designed to ensure that the information required to be disclosed in the filings under applicable securities regulations is recorded, processed, summarized and reported within the time periods specified in applicable securities regulations. As at March 31, 2015, under the supervision of Zenith's Audit Committee, and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, Zenith conducted an evaluation of the effectiveness of the Company's disclosure controls and procedures. Based on this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that, as of this date, Zenith's consolidated disclosure controls and procedures are satisfactory. Nevertheless, Zenith is committed to improving its internal controls over financial reporting and will continue to diligently and vigorously review Zenith's internal controls by utilization of internal and external sources, as deemed necessary. As Zenith continues to evaluate and work to improve its internal controls over financial reporting, it may be necessary to take measures to address any deficiencies that may be identified.

Andrea Cattaneo, Chief Executive Officer of Zenith comments, "Overall, in management's view, the proper numbers, as released in the restated financial results today, will actually now reflect a net benefit to Zenith in terms of IFRS measures versus the initially reported numbers. The management and Audit Committee of Zenith regret this isolated incident and will ensure that we continue to employ best practices to minimize the potential for any future issues."

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Information

Certain information in this press release is forward-looking within the meaning of applicable securities laws, and related to anticipated financial performance, events and strategies. In particular, this press release contains forward-looking information about Zenith's proposed amendments to the Financial Statements. By its nature, such information is subject to significant risks, assumptions and uncertainties, which could cause Zenith's actual results and experience to be materially different than the anticipated results or expectations expressed. Although Zenith believes that the expectations and assumptions on which such information is based are reasonable, undue reliance should not be placed on the information because Zenith can give no assurance that it will prove to be correct.

Whether actual results, performance or achievements will conform to Zenith's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from Zenith's expectations. Such risks and uncertainties include, but are not limited to, risks and uncertainties relating to the failure to obtain from its auditor, MNP LLP, an auditor's report in respect of the amended Financial Statements that expresses an unqualified opinion.

Readers are cautioned not to place undue reliance on the forward-looking information in this press release, which is given as of the date of this press release, and to not use that information for anything other than its intended purpose, as actual results could differ materially from the plans, expectations, estimates or intentions expressed in that information. Zenith undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

[grannyboy] 13/4/2017 19:30

"Ditto guys, I've just sent you something interesting on zen"


You wouldn't recognise 'interesting' if it slapped you in the face.

[dipla] 13/4/2017 18:59

Gd luck, guys just check out the profiles of sad life posters, most of them created at IPO of zen. Ditto guys, I've just sent you something interesting on zen!

[grannyboy] 13/4/2017 18:43

ravin(lunatic), Yes best you do your private messaging to your selected few, because you offer zero to any debate besides snidey remarks..