Zenith Energy Share Discussion Threads

[ravin146] 21/4/2017 14:59

Sea yes I posted that earlier one on low costs and two on how straight forward he presented in plain English...

[sea7] 21/4/2017 14:39

Alan hume's short presentation on zenith from early march 2017..

In case anyone missed it, even though he has left.




His comments are $40k-$70k cost per workover, no nodding donkeys, simple pressure wells with valves on top, then transport oil to tanks.

Workover 10-12 wells and we should see a three fold increase to about 1000bpd by march next year. No additional cost to get the oil to socar.

[pugugly] 21/4/2017 14:33

rav Re 1468 - You sure you do not work for GUN? Their conversion price was about 6.5p-7p so making a substantial profit and could afford to come down if market not pumped up. Waiting,,

[sea7] 21/4/2017 14:25

seems that way ravin, work underway.

[cpap man] 21/4/2017 14:22

ZEN are now seriously undervalued and therefore a STRONG BUY

[currypasty] 21/4/2017 14:21

another 100k buy for me, 9.61, shown as sell

[ravin146] 21/4/2017 14:16

Sea 7 looks like workover 45 well under way. Progress!

[ravin146] 21/4/2017 14:16

PUGUGLY gd luck. Filtered

[sea7] 21/4/2017 14:04

team a pics on twitter..

[sea7] 21/4/2017 13:58

tks ravin for your comments

[sea7] 21/4/2017 13:58

11SMITH

These things need to be taken into context, whilst there were CAD$8,618,257 of current liabilities on the balance sheet as at 31st December, there were also
CAD$2,592,655 of current assets, which when offset give a net liability of
CAD$6,025,062.

When this net current liability is converted to sterling we get £3,490,874.

The company listed on the lse after these accounts and completed a gross fund raising of £3,187,00.

In Q3 the company generated at profit of about £200,000 in Azerbaijan.

It generates about £100k a month of free cashflow. It will generate £1.2m of free cashflow over this calendar year, added to the monies raised at listing enables it to meet its obligations and fund this years programme.

Its all well and good copying and pasting the accounts, however, it needs to be remembered that they are historic, out of date the minute they show up and much has changed in the interim. They were filed on sedar in February.

At present they are fully funded to carry out the programme for 2017. That much we know at this time.

[pugugly] 21/4/2017 13:49

Not shorting Not holding Considering but seeing as how Gunsynd converted at 10 cents and still have a significant holding might be a better entry level IF and a very big IF I make a go decision.

[ravin146] 21/4/2017 13:21

You haven't answered the question I raised, there is no guarantee of sucess in any business on the LSE...are you shorting the stock then?

[pugugly] 21/4/2017 13:09

ravin146 - agreed low cost BUT no guarantee of success and/or payback time for increased production - Sand clogging can be very difficult to clear especially if has packed hard outside the pipe rather than inside - From previous discussions with oilers I hear this happens all too often -So still digging - GUN still appear to be selling down - PLUS why main market - well under most investors radar PLUS surely stamp duty payable which with a wide spread and potentially illiquid stock is a NO NO - OK could always by in Canada.

[ravin146] 21/4/2017 12:55

Short it then PUGUGLY...put your money where you mouth is?!Key part of that video is the workover costs. 40-70k...very low.

[pugugly] 21/4/2017 11:50

ravin146: BUT he was departed YESTERDAY- A worry - everything he said could now be in doubt ? Or am I being too cynical ?
Edited: revin146 - Just watched - thanks for the link - not impressed -

[ravin146] 21/4/2017 10:06

Time for another top up...GUN keep selling and I'll buy

[ravin146] 21/4/2017 08:54

Talking of Alan...watch this...very plain English...https://m.youtube.com/watch?v=4idd9mGfLqQIgnore the noise, rubbish that funding is required...the workover program is fully funded!Drilling over 25years will obviously need funding, fools will be fools I guess!

[cashandcard] 21/4/2017 08:08

If they are to pursue the Chinese rig and new drilling, then fresh funds maybe required. However, for new drilling, it'll be worth doing.Whether there is a connection with this appointment or not is a different question.The Canadian listing is good, they are strict when it comes to reporting and disclosure.Cash

[pugugly] 21/4/2017 08:02

CFO - The scottish man is out - An Italian in - so what do we have now - A Canadian company - main listed market London Imain board) run by Italians with major potential resourse in Azerbaijan and level of debt and working capital needs unclear.

More funds needed ? Was Alan pushed or did he jump or was there another reason ? Damned with faint praise (imo) in the announcement

All answers on a postcard please.

[cpap man] 21/4/2017 07:37

RNS out from ZEN

[11smith] 20/4/2017 22:23

Sea7, if you look at the unaudited December 2016 accounts again, note Operating activities - Net profit/(loss) $614,713,380. Also, see note (1) which is self explanatory as follows (1) Included in the General and Administrative expenses for three and nine months ended December 31, 2016 are approximately CAD$600,000 and CAD$1,600,000 non-recurrent expenses related to the January 11th 2017 admission to the London Stock Exchange as well as a non-cash charge of C$290,000 in relation to the award of the 6,000,000 options.
Taken as read, a profit of $614,713,380 resulted from operating activities. Also charges and non-recurrent expenses totalling CAD $1,890,000 were included in December 2016 accounts. When we are able to study the full year end accounts it will be more clear how the Company have benefitted from the funds raised during the London placement. The following is also copied directly from December 2016 accounts. I don't think it unreasonable to raise all these issues for debating and if you really do believe I am trying to create fear or uncertainty, please study your own psychology and not mine. (further analysis on points raised follows)

As at December 31, 2016, the Company had $8,618,257 (March 31, 2016 – $8,201,167) of current liabilities for which the Company’s $18,476 (March 31, 2016 – $137,982) cash balance is insufficient to settle the current liabilities. It is expected that further debt and equity financings will be required in order to settle existing current liabilities, continue development of the Company’s assets and meet future obligations. There can be no assurance that such financings will be available to the Company.

21. Subsequent events
(a) On February 22, 2017 the terms of the repayment of the First Credit Agreement were amended and the amount of USD $160,000 (plus accrued interest)(CAD $215,650) will be paid on March 27, 2017
(b) On February 21, 2017 the terms of the repayment of the Third Credit Agreement were amended and the amount of USD $55,000 (plus accrued interest)(CAD $74,130) will be paid on March 27, 2017
(c) On February 22, 2017 the terms of the repayment of the Fourth Credit Agreement were amended and the amount of USD $55,000 (plus accrued interest)(CAD $74,130) will be paid on March 27, 2017

In connection with Admission, the Company successfully placed 33,322,143 Common Shares (the "UK Placing"). Following its book-building process, in which Common Shares were placed at £0.07 (CAD$0.11) per Common Share, on completion of the UK Placing the gross proceeds available to the Company were approximately £2,332,550 (CAD$3,823,848) and the net proceeds were approximately £2,015,922 (CAD$3,304,786). The Company paid finder’s fees of GBP 113,500 and issued 1,114,286 broker warrants exercisable for 24 monthsfrom closing at a price of GBP 0.07 per common share to certain arm’s-length parties under the private placement undertaken as part of the dual listing on the London Stock Exchange on 11 January 2017.

(g) In January 2017 the Company paid the USD 700,000 (CAD$943,467) of the USD loan, utilising part of the proceeds from the fundraising aligned with the listing on the London Stock Exchange of January 11, 2017.
(h) In January 2017 the Company issued 668,571 shares, at a deemed price of £0.07 per share, for the settlement of a debt for services of a senior manager of the Companty, for an amount of £46,800.
(i) In January 2017 the Company incurred in expenses for a total amount of £306,628 (CAD$505,476), related to the admission to the London Stock Exchange listing

In January 2017 the Company entered into an agreement to proceed with a brokered private placement (the "Private Placement") to raise gross proceeds of GBP 855,000 (approximately CAD$ 1,408,000) through the issue of nine million (9,000,000) new common shares of the Company ("New Common Shares") at a price of GBP 0.095 (approximately CAD$ 0.1565) per share.
In addition to the New Common Shares, under the Private Placement each subscriber received one warrant (the "Warrant") for every New Common Share purchased. Each Warrant shall entitle the Warrant holder to subscribe for new Common Shares in the Company at a price of GBP 0.15 per common share (approximately CAD$ 0.247), exercisable at any time until 1 February 2019. The proceeds of the Private Placement will be used to accelerate the Company's field rehabilitation activities in Azerbaijan and increase the number of well workovers scheduled for completion by 31 March 2018.

On January 25, 2017 the Company issued 3,700,000 shares on the conversion of 311,067 Swiss Francs

The outstanding amount of convertible note, at the date of this document, is CHF3,886 Swiss Francs ($5,084) of principal, and CHF249,758 (CAD$327,730) of accrued interest.

[ravin146] 20/4/2017 20:25

Sea7 thanks for going through a few points from 2016 accounts. It's what 11yearoldSmith used to post fear about/may still be doing -have it filtered lolBreath of fresh air sea7 you have been to this bb.cheers

[sea7] 20/4/2017 18:57

They also paid off about £550,000 in loan payments in January, so since the end December I can see about £950,000 in debt cleared.

[sea7] 20/4/2017 18:15

The $602m surplus is shareholder equity and relates to the Azerbaijan acquisition.