Zenith Energy Share Discussion Threads

[11smith] 03/5/2017 22:26

It is not 100% clear what happened at the end of the Mongolian venture. The matter dragged on for years and the last news I can find was that Canoel were considering legal action against another company they had an agreement with and alleged the other party was in breach of contract. However, the other party contended that it was Canoel who had broken the contract. It seems Canoel decided not to pursue the matter and there was no further news. /////// So, do you think this start in business and developments subsequently are the reason for the current Zenith Energy valuation? Or is the company under-valued due to the performance of the TSX.V index?

[11smith] 03/5/2017 22:15

CYGAM Energy Inc. bought some shares and warrants in Canoel for CAD $0.25 shortly after Canoel listed on TSX.V.

[11smith] 03/5/2017 22:12

If you read the news releases regarding the Mongolian ventures, the problems in Tunisia and the dealings with CYGAM Energy Inc. you will see the disastrous start Canoel had. Here is how the Tunisian ventures ended. copied from the following publication - CANOEL INTERNATIONAL ENERGY LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS
SIX MONTHS ENDED SEPTEMBER 30, 2011
TUNISIA
On August 4, 2011, Canoel announced the divestment of its potential interest in the Tunisian blocks of Jorf, Bazma and Sud Tozeur (the “Tunisian Blocks”) which were covered under the terms of a Farmout and Participation Agreement signed with CYGAM on July 10, 2008. Pursuant to a Termination and Release Agreement, Canoel and CYGAM have terminated the Farmout and Participation Agreement wherein Canoel was granted the opportunity to participate in certain oil and gas operations in order to earn an interest in the Tunisian Blocks, as well as the Memorandum of Understanding (“MOU”) whereby Canoel acquired the opportunity to participate in oil and gas operations in order to earn a further interest in certain of the Tunisian Blocks. Pursuant to the Termination and Release Agreement, CYGAM has agreed to pay $621,278 (the “Termination Fee”), an amount equal to those costs paid by Canoel pursuant to the Farmout Agreement, in exchange for the assignment and transfer of any rights earned by Canoel under the Farmout Agreement or the MOU. Following the prompt approval of the Termination and Release Agreement by the board of directors of both of CYGAM and Canoel, CYGAM paid an initial $50,000 and has agreed to pay the balance of the Termination Fee ($571,278) no later
than March 31, 2012. //////// So, early exploration and the CYGAM venture went badly. This is in no way connected to the fall in value of the TSX.V index, it is, however, the sort of problems that will cause a company's shares to fall in value.

[11smith] 03/5/2017 21:57

Going back over the CEO's presentation at the recent investor show. The CEO clearly states that Zenith is under-valued because the TSX.V index crashed and pulled Zenith with it. ( or words to that effect ). So, what really happened?
The TSX.V index did indeed crash from around mid-2008. There is no evidence that this was in any way connected with the poor performance of Zenith Energy stock. That fact is so obvious that it is very worrying Mr. Cattaneo should make such an un-necessary blunder. ///// The following events were the reason for Zenith's poor performance over the next 2 years or so: ...read the documents and you will see. Also place the 10-year charts for TSX.V and Zenith (Canoel) together and it is obvious there is no evidence whatsoever that the Zenith share price follows the index. ///
HISTORY. There was a sharp Zenith share price climb mid 2009 and then the Mongolia debacle started with this news - May 27th 2009 news published on TSX.V

CALGARY, May 27 /CNW/ - Canoel International Energy Ltd. ("Canoel" or the "Company") (TSX VENTURE: CIL) is pleased to announce that the Company has taken a major step in a new direction by entering into an Agreement to become the operator of a large oil exploration block in Mongolia. The Agreement provides that a Canoel subsidiary will become the controlling shareholder of Block XXIII (as such block is designated by the Mongolian Petroleum Authority) by purchasing such interest from the present shareholder who will continue a co-venture partner.

The agreed terms call for the Company to purchase shares of the entity presently holding the rights to explore and develop Block XXIII and for seller/co-venture partner to retain an amount of free carried working interest of 6% through the first commercial discovery. The Corporation is required to pay up to approximately US$46 million over the next five years, but only a small portion of that amount during this next year. In order for the Corporation to conclude this purchase of shares, it will seek the required approval of the TSX.

Block XXIII is located in the Mongolian part of the Gobi desert, immediately north of the boundary with China. It covers 13'575 square kilometres (about 3.37 million acres). The railway line from the Mongolian capital, Ulan Bator to Beijing runs through the eastern part of the Block; railway is the most important method of transportation for crude oil in mainland Asia.


Block XXIII includes a structural feature that separates the highly prospective Erlian Basin in China from the East Gobi Basin in Mongolia. The biggest field in the Erlian Basin, the Ershan field, is said to contain reserves of 500 million barrels of oil in Lower Cretaceous sediments. It produces currently about 60'000 bopd, all of which is transported to a refinery at Dong Wu, China. In Mongolia, two smaller discoveries have been made in the East Gobi Basin. The Zuunbayan Field and the Tsagaan fields are located a few kilometers north of Block XXIII and are producing about 1'600 bopd from Lower Cretaceous sediments at relatively shallow depths. These discoveries were made by Roc Oil, and the fields are now operated by a subsidiary of PetroChina.

No intensive exploration activity has been carried out in Block XXIII. The Soviets conducted regional gravity and magnetic surveys and shot in 1970 a small amount of seismic lines. A significant amount of the results of these surveys has been published in Soviet academic publications. No wells have been drilled in Block XXIII since the Soviet exploration efforts.

The Mongolian Petroleum Authority imposes certain minimum work commitments on those to whom it grants licenses in blocks such as Block XXIII. Accordingly, these commitments to do seismic testing and drilling are spread over the next 5 years.

Hans Oesterle, Vice President for Exploration says: "Preliminary work identified several large structures in Block XXIII under major regional thrust faults. These leads need to be verified by modern seismic data; but the current size of the mapped structures is such that any discovery will be of significant size. Future production will satisfy local requirements, but surplus production can be transported by railway to the Chinese refinery at nearby Dong Wu". //// Then more on July 28th 2009 as follows. //////


CALGARY, July 28 /CNW/ - Canoel International Energy Ltd. ("Canoel" or the "Company") (TSX VENTURE: CIL) is pleased to announce that the Petroleum Authority of Mongolia ("PAM") has fixed the effective date for the five-year exploration program for the large oil exploration block in Mongolia designated by PAM as "Block XXIII", which means that the exploration period for the property has now commenced.

As announced in the Company's press release dated May 27, 2009, Canoel has entered into an agreement (the "Share Purchase Agreement") to acquire all of the shares of a Mongolian corporation (the "Mongolian Company"), which is the holder of the exploration license to Block XXIII. Pursuant to the Share Purchase Agreement, Canoel will purchase all of the shares of the Mongolian Company from the Seller in exchange for cash of US$1.1 million and the grant to the Seller of a 6% carried interest in Block XXIII.

The Mongolian Company has entered into a Production Sharing Contract with PAM, which will require it to complete an exploration program on the property and to make certain payments to the Mongolian government amounting to approximately $46 million over the term of the contract, with the greater portion of such payments being required in years 3, 4 and 5. Upon completion of the Share Purchase Agreement, Canoel, through its new subsidiary, the Mongolian Company, will assume the responsibilities under the Production Sharing Agreement, including completion of the work program.

The Share Purchase Agreement provides that closing of the transactions noted therein are subject to the satisfaction of certain conditions by both parties, including a minimum financing having been raised by the Company. There can be no assurance that this or any of the other conditions set forth in the Share Purchase Agreement will be satisfied or, in the event of such failure, that the transaction will be completed.

This was followed by the problems in Tunisia and the arrangements there involving CYGAM Energy. ..covered above

[rameshh] 03/5/2017 18:19

Just a pop by visit...The twitter updates on a UK bank holiday suggests to me that well update on 195 and possibly 45, though slightly early...is imminent.Good luck, in my opinion.

[dipla] 03/5/2017 17:24

^wtf pig?!Agree, there seems to be buys showing as sells, with spread movement odds at time when the bid offer was close at some points.Nevertheless, hoping GUN sell all their stake, as they are not required. The investment firm's share price is not doing well with continued investors sells, so won't be surprised if they cash in on the remainder.Gla, well update this week?!

[pugugly] 03/5/2017 17:03

Heavy selling volume - chunks of 50K & 100K suggest major holder/s still unloading and/or bad news leaking - Possibly only way to check is to take a trip to the site !!
anyone willing to fund my trip !!!

[ravin146] 03/5/2017 16:11

Yes agree, imo well195 is due very shortly as now not much to do besides drill 100m

[muddy_40] 03/5/2017 16:08

Must be in the drilling phase now on M195, maybe next tweet we will see them running the casing?

[ravin146] 03/5/2017 16:02

There's been a odd series of trades which overlap the bid offer at times today...my top up is shown as a sell, so I have a feeling there are a few more buys today. Hence the lack down side today if volume is correct

[ravin146] 03/5/2017 13:16

Zengas...I'm expecting well 195 result very soon, based on the weekends twitter pictures...what are your views?

[ravin146] 02/5/2017 19:18

Sea7 don't waste your time. We all know 11smith has not made a penny and not has a position long or short!Ignore the fool

[sea7] 02/5/2017 18:09

Your being overly pessimistic 11smith,

Do you think that all those on the ground, involved in the drill are running around like lunatics, panicking because 11smith on the advfn bulletin board is expecting results immediately.

Get a grip will you.

These things take time and effort to get to, to exit from, to set up alternatives, to deliver equipment and to ensure that each stage is executed correctly.

They started in February on a workover, we are nearly three months down the line and they are at the stage of drilling the sidetrack, then cementing the casing, waiting for it to cure, then re-entering and drilling to target depth, which will be open hole. Then we start to consider things like flow rates.

They are working through their stated plan.

[11smith] 02/5/2017 17:02

Sea7. Can you clarify - 'the fact that they switched to a sidetrack on the first well and had things moving relatively quickly', particularly - 'moving relatively quickly'? Relative to what? As I recall we waited longer than anyone here expected for news that M-195 wasn't viable and a sidetrack was the only (and last) option available. Then we waited a further 2 weeks for news suggesting no real progress had been made with the sidetrach. So, if that is 'relatively quickly' I dread to think how long all this will take if they hit ant real difficulties.

[sea7] 02/5/2017 15:15

Grannyboy,

This first well is more challenging than the others and offers much more upside to the programme. This is why they chose it first.

My lack of a timeframe is also taking into consideration that azer isn't the only iron in the fire and gives an additional revenue stream in addition to the current 300bpd in azer.

They will have assessed the drilling plan and the fact that they switched to a sidetrack on the first well and had things moving relatively quickly, says they had considered it as an option, before any workover started.

[grannyboy] 02/5/2017 15:08

sea7, you might not have put a timeframe on, but the company has, and that is to reach a daily production rate of 1000 pd, now does the company know for certain that there is not going to be problems like they've had at M-195 at other wells, because if there is then another couple or three 'problem' wells and their targets will be missed..

[cashandcard] 02/5/2017 14:33

sea7,


Agreed. Enough talk, enough speculation on these boards, the only thing that matters now is results. Nothing else will change the course here - market needs to see one workover go as planned.

This either sinks or swims.


Cash

[sea7] 02/5/2017 14:07

It would be much better for us to simply sit tight, be patient and wait. The fact that we are receiving pictures by twitter with drilling updates is a bonus, whether half of them appear staged for the camera or not, it doesn't matter, it gives us some idea of what is going on, on the ground.

Some will sell out simply because things aren't moving fast enough in their eyes, so what, let them. We know that these are proven resources. We are not wildcat exploring here. The oil is there, Andreas said in an interview recently that they were taking their time, so as to get everything right on this first drill. It is one of the more challenging on the field, so we can expect them to take matters more slowly.

If people throw in the towel and sell for no other reason than impatience then that is up to them. I am holding and did not put a timeframe on this investment, nor did I put the whole position on at once.

I see half the mcap covered by the Italian assets, another quarter covered by cash, leaving 25% of the mcap, or about £2m for the azer assets. There is more upside here than downside at this time.

[pugugly] 02/5/2017 14:00

11smith - your 1636 - Some good points re Andrea - You have missed however a major negative (imo) allowing ALIGN - I presume he allowed them to issue the two research notes - A mitigation being a Canadian Company and an Italian with lack of knowledge of UK situs research houses. (He may been short of cash and took the free offer) .

On the other hand the oil assets (assuming the Beaufort note and the IPO documentation) are anywhere near correct and recoverable - potentiallay offer significant upside. The constant Twittering is for me a negative - The proof or otherwise of the project will only be revealed by the drill bit and oil produced (or not produced) !!!!!!!!!!!

[grannyboy] 02/5/2017 12:05

Is this company just another AIM company in wolves clothing...or a pig in the poke...

[ravin146] 02/5/2017 11:58

LOL the fool probably replied even though he is filtered!dipla - 02 May 2017 - 09:34 - 1635 of 1636 - 4Haha, 11smith hasn't even made money here!Typical deramper...I'd hate to live that life continually posting rubbish, get a proper job 11smith!...agree doesn't have a long or short position...really sad

[11smith] 02/5/2017 11:13

This is absurd. I point out the stupid statement made by the CEO and I am called a de-ramper. Wake up! The CEO blames the under-valuation on the crash in value of the wider TSX.V index. A ridiculous statement and unacceptable from a CEO. He must go and get a different job surely. /// Then we wait weeks for news of M-195 only to hear that nothing has been done. Commenting on these matters is not de-ramping.

[dipla] 02/5/2017 09:34

Haha, 11smith hasn't even made money here!Typical deramper...I'd hate to live that life continually posting rubbish, get a proper job 11smith!

[11smith] 02/5/2017 01:56

Ravin146, why do object to my post concerning the ridiculous remarks from the CEO. Let me try again, I posted - 'Is it time to appoint a new CEO? Mr. Cattaneo explains at length the reason Zenith is so under-valued. See the recent twitter presentation. He clearly states the reason for this undervaluation as being the decline in value of the TSX.v index, quoting figures to support his argument. So, that is the reason the company is so under-valued. He obviously compounds the problem by making such a stupid statement.' Now, why do you apparently find this so offensive?