Zenith Energy Share Discussion Threads

[potential] 24/1/2017 08:13

Sold sea of blue this morning and rightly so.....

[potential] 24/1/2017 08:11

This should be heading towards 25o easily!!!!

[hearts1] 24/1/2017 08:10

No reason why they can't get to 3000bopd - which makes the current market cap way to low.

[cpap man] 24/1/2017 07:50

Zenith Commences Workover Programme in Azerbaijan







FOR IMMEDIATE RELEASE

(LSE: ZEN, TSX.V: ZEE)



Calgary, Alberta - January 24, 2017 - Zenith Energy Ltd. ("Zenith" or the "Company") the international oil and gas development and production company with assets in Azerbaijan, Italy and Argentina is pleased to announce an update on its operations in Azerbaijan.

Azerbaijan - Introduction

The Company, through its wholly owned subsidiary, Zenith Aran Oil Company Limited, recently assumed operatorship of Azerbaijan's largest onshore producing oilfield in a Rehabilitation, Exploration, Development and Production Sharing Agreement ("REDPSA"). The REDPSA was signed between Zenith Aran Oil Company Limited and SOCAR (State Oil Company of the Azerbaijan Republic) on 16 March 2016, was approved by Azerbaijan's Cabinet of Ministers on 25 April 2016, and subsequently ratified by the Azerbaijan Parliament on 14 June 2016. Production under the Zenith banner began on 11 August 2016.

Zenith holds an 80% participating interest in the three fields within the contract area (Muradkhanli, Jafarli and Zardab), while a SOCAR Oil affiliate company (fully owned by SOCAR) retains the remaining 20%. The duration of the REDPSA is 25 years, with a potential extension of 5 additional years.

It should be noted that in Azerbaijan a REDPSA has the unique feature of being a statutory law of the Country, having been enacted into national legislation following parliamentary ratification.

Azerbaijan - Highlights

· Regular cashflow from Azerbaijan operations with production of approximately 295bopd.

· Initial payments from SOCAR Marketing Operations were reported already in November 2016 and to date all invoices due have been paid punctually.

· Signing of well workover contract and engagement of highly experienced local drilling company to initiate and execute workover of first two wells in the programme (M-195 and M-45).





Azerbaijan - Operations And Workover Programme



Further to prior announcements (see TSX-V) and the Company's admission to the Main Market of the London Stock Exchange, Zenith continues stable production rates of approximately 295bopd across its three producing fields of Muradkhanli, Jafarli and Zardab.



In addition to the TSX-V press release of 21 November 2016, Zenith continues to receive regular cashflow from SOCAR Marketing Operations for delivery of Urals crude oil from the Muradkhanli, Jafarli, Zardab fields. Since this date all invoices due for crude oil quantities formally delivered into the international pipeline network by Zenith Aran have been paid punctually and, at times, in advance of the due date.



A key element of Zenith's ongoing strategy for Azerbaijan is to increase the scale of its activity to deliver near-term incremental increases in daily oil production. To achieve this goal a workover programme aimed at rehabilitating the first 10 of 65 low producing wells at these fields has begun following the signing of the aforementioned workover contract.



The workover rig is en route to site and is expected to start operations on 31 January 2017. Further updates on the progress of the workover programme will be provided regularly.





Andrea Cattaneo, Zenith Energy CEO, commented:



"We are pleased to announce the beginning of our workover programme so soon after Zenith's successful admission to the London Stock Exchange's Main Market. With the current price of Urals oil exceeding $51 per barrel, significantly higher than the price of oil when Zenith first assumed operatorship of these fields, the timing could not be more favourable for the Company to expedite its strategy to increase production.



Our fields, Muradkhanli, Jafarli and Zardab, have previously produced in excess of 9,000bopd with peak production even reaching 15,000bopd during the Soviet Union period. However, shortly after achieving these peaks, production significantly declined due to a series of mechanical failures; and progressively declined because of a lack of investment in the fields. This lack of material attention towards the fields can be explained by Azerbaijan's post-independence national energy strategy focused on offshore oil production.



The Company believes that this lack of maintenance and gradual dilapidation of field equipment is the principal cause of the decline in oil production and that these fields are far from reaching a stage of natural depletion. This has been confirmed by the recent Competent Persons Report (CPR) that assessed 2P reserves of 33.4 million barrels of oil net to Zenith.



We look forward to providing Zenith investors with regular updates regarding the progress of our development and rehabilitation activities in Azerbaijan."

[effiert] 24/1/2017 07:50

#ZEN 'Muradkhanli, Jafarli and Zardab, have previously produced in excess of 9,000bopd with peak production even reaching 15,000bopd' WOW!!

[effiert] 24/1/2017 07:47

"the timing could not be more favourable for the Company to expedite its strategy to increase production."

[effiert] 24/1/2017 07:33

Now thats what i call a decent RNS/Update/

These guys mean buisness.

can see 20p+ pretty sharpish here on with regular updates

[cpap man] 23/1/2017 08:55

LOL that poster has just confirmed my original comments!

[honestcrook] 23/1/2017 08:54

Welcome on board pjj71.

[pjj71] 23/1/2017 08:52

I actually bought some this morning, as it looks like it has consolidated now..

[cpap man] 23/1/2017 07:15

RNS out from ZEN this morning.

[hearts1] 20/1/2017 21:14

I'm in. Let's see.

[honestcrook] 20/1/2017 18:52

Yes very promising. Future is looking bright.

[2lb] 20/1/2017 18:47

Always nice to get the cash in early....

[honestcrook] 20/1/2017 18:36

Thanks 2LB. Good read.

[2lb] 20/1/2017 16:31

Steady consolidation day.

More of the same next week one would think.

[nash81] 20/1/2017 16:28

richie666

NICE read on the align report. dip some in here too.

been wondering, would ALIGN also do report on JLP? platinum production about to go online there.

thanks

[tyranosaurus] 20/1/2017 15:39

PJJ51

I note that you do not have shares in this company.
Why not post on the boards of stocks that you do have ?
Why take all the flak on this one.

[barnetpeter] 20/1/2017 13:48

oh and this is NOT an Aim stock.....

[barnetpeter] 20/1/2017 13:47

"the quickest way to the poor house is to block out opposing views"


I agree on this. I do think Zen is cheap.....yes it has a few finance issues. It raised new money and can raise more if it needs to. The mkt cap is low and the future is bright. But its an oil stock and all small oilers are risky and then some!

[cashandcard] 20/1/2017 12:04

I have been researching this company recently too. The opportunity is a huge with the Azeri assets. My concerns are related to actual field production - just how long will it take to get production up to a stage where the company does not have to default to the usual AIM dilution option? Consider the wells are tricklers - like the nodding-donkeys that dot Texas. Will it also be a case of constantly having to drill new wells to replace older depleting wells?

I believe it'll take 12-18months at least.


Cash

[pjj71] 20/1/2017 10:35

2LB- I hope your research pays off for you...

I only expressed the view that the short term price had run away with itself and pointed out the danger of following a pump and dump (and outlined the flags as I saw them)... given a placing was done a couple of weeks ago at 7p and even allowing for a substantial discount, in my view 8.5p would be a generous price until any positive news-flow (which may or may-not come)..
I'm sure that those who were suckered into the hype wished they had waited, as they would now have a 25% bigger stake in the dream...

[2lb] 20/1/2017 10:22

PJJ71

Opposing views are always welcome and should always be taken onboard. The general issue is how such views are presented and evidenced. Well researched negative stances have saved me one more than one occasion from potentially hefty losses.

Ref ZEN, I have, as I always do, carried out my own personal DD and research into the stock and I believe it is materially undervalued and has no financial red flags in respect of cashflows, funding etc.

I do not expect it to suddenly multiply in value and I take the 42p note issued yesterday with a hefty pinch of salt, however I do see a 15p-20p range over the next three months being established to better reflect ZEN, which is far better placed and most certainly undervalued in relation to what might be considered its AIM "peers"