Zenith Energy Share Discussion Threads

[cpap man] 16/8/2017 14:34

TSXV:REG



Walter Walcarpets15 Aug '17 - 22:47 - 7616 of 7619 1 0

It would be nice if ARS reacted like Regulus resources to drill results!



Yes W W that Regulus Resources - TSXV:REG result and share price reaction was just great!



Walter Walcarpets16 Aug '17 - 07:56 - 7619 of 7619 1 0

off topic cpap: mentioned it a few weeks ago on this bb. Don't know if anyone had a look. It's an absolute monster by the look of it.

apologies, back to ARS.

walt

[sea7] 16/8/2017 14:32

Cash

That's a fair point, tsx listed are required to file quarterly, we probably would only get the interims and annual accounts from them otherwise. Obviously we would get market sensitive announcement, however, that would be it.

pro's and cons in everything!!!

[cashandcard] 16/8/2017 14:13

Sea7,

"They do parade the successes, however, what Andrea ought to really think about is dispensing with the TSX listing and perhaps then, other outlets such as proactive investors would cover it a bit more"


No way, the TSX listing is the only way we get info out of this company with strict quarterly reporting. If they do that, they will become like every other aim company and keep folk in the dark.

"He may be trying to raise the profile of zenith in the retail investor community by going outside of London, however, getting it known in financial circles first is usually the better route, as it will get known by retail investors soon enough if the share price climbs to the top of the riser board one day"

I agree, he should be trying his best with the institutions first, who have deep pockets and can commit longer, with bigger amounts than your average PI.


Cash

[sea7] 16/8/2017 13:12

The wells have production history and as long as they put in solutions to the reasons why they stopped producing in the first place, then there should be no requirement to re-workover the well for the same reason again.

E.g. at least one of the wells in the zardab field produced at over 500bopd for a couple of weeks and then got clogged with sand. I saw a reference to using gravel packs to prevent this re-occurring, so if it is successful, then there should be no known reason why the well won't start producing immediately at 500bopd again. The unknown on that well, is how long it would produce at that rate for. Two weeks was a good amount of time for stable flow rates, however, could it run at 500bopd for weeks or months, possibly longer, could it be enhanced further down the line with artificial lift.

It is these types of interventions that will create the shareholder value.

[pj 1] 16/8/2017 12:57

I hold BKY, which needs time. I suspect its share price may decline more as boredom creeps in more.

ECHO and Karoo also Presented. ECHO impossible to value. Karoo......unsure. Where will they drill is the question. Just a gamble at this stage

ZEN-Yes I saw Andrea present. As with most Companies it was a decent Presentation. However, where he did excel was after the Presentations where he made the effort to talk to everyone (or as many as he could)individually. Its the first time I've seen that so Hats off to him for that.

As an Investment? Its on the w/l but I'm unsure. If these workovers are one-offs then fine, but what if they have to keep repeating them? We never really got an answer to that.

Thoughts?

[grannyboy] 16/8/2017 12:47

So PJ 1, were you impressed with BKY, or were your interest diverted to any
of the other companies presenting?..

[sea7] 16/8/2017 12:44

PJ - did you see andrea present and would you say it was worthwhile.

[pj 1] 16/8/2017 12:41

I attended the Presentation yesterday, mainly to see BKY.

[sea7] 16/8/2017 12:31

I have to agree with you on the location point cash.

I would not have travelled to Manchester for this type of event. The last event I attended was a seminar held at the Banqueting House in Whitehall and that was a worthwhile day. There is no way the same people at that event would have travelled to Manchester.

If someone is presenting the begging bowl for cash, then I prefer that they can account for the vast majority of what they want the funds for. Forecasts are all well and good, however, like weather forecasts, they are usually just as unreliable at the smaller end of the capitalisation spectrum. Most small caps will wade through a recently raised, larger pile of cash, like a hot knife through butter.

I guess it depends on your view point, raise loads, dilute existing shareholders heavily and get on with it, or take a more prudent, cautious approach, which takes a bit longer, assuming investors are more likely to support smaller, justified equity raises, which does not annoy the hell out of those that bought much higher up.

They do parade the successes, however, what Andrea ought to really think about is dispensing with the TSX listing and perhaps then, other outlets such as proactive investors would cover it a bit more. It is viewed as a Canadian company, not subject to the usual rules that uk incorporated, listed companies are and is therefore less attractive to potential investors than would normally be the case.

He may be trying to raise the profile of zenith in the retail investor community by going outside of London, however, getting it known in financial circles first is usually the better route, as it will get known by retail investors soon enough if the share price climbs to the top of the riser board one day.

Twitter is becoming, if it hasn't already, a platform for rampers to juice up their stock prices, without using the official rns channel. I treat it with caution, although I do like the idea of what it could do for company PR and investor reach.

Just my opinion on it.

[cashandcard] 16/8/2017 11:55

Sea7,


I hate to say this, but AC seems to be out of touch with how money markets, company PR and investor relations seem to work. If you want to be taken seriously;

-You hold investor meetings/presentations in London (not up North)
-You raise ample funds in one go (not everytime an invoice hits the accountants desk - have they heard of forecasting!).
-Achieve results and then parade it for everyone to see via RNS, Presentations, media interviews/articles with reputable outlets. This is the best PR (not twitter).

They really need to learn how things are done in the UK!


Cash

[sea7] 16/8/2017 11:45

Someone thinks that Cassiopeia will have it on their website next week, so perhaps zen will get it on their site.

[ravin146] 16/8/2017 11:23

Sea7 yes agree, the location could have been the issue on attendance. Either way it will be nice to get a hold of the presentation to see what the next plan is etc.If anyone sees it please post hereTa

[ravin146] 16/8/2017 11:16

In my opinion and experience, don't hold a investor presentation unless you are there to highlight recent success or there to raise awareness for potential future fundraisers.It was a bad point in time to do one...I hope the costs were not to high to attend it including the flights accodmation etc for CEO and directors!May even do a small fundraiser for that LOL

[sea7] 16/8/2017 11:01

Andrea is not running the ground operations, Mike is, so Andrea can turn up at whatever charm offensive he chooses to do, which is part of the CEO job, to promote the company, gain coverage and exposure to the company offering to as many as possible.

Mike will report progress to Andrea at regular operations meetings that they no doubt have. Andrea is on record as saying that he is handing over day to day field ops to mike so that he can concentrate on his CEO role.

Mike said he would update on wells once pumps are in and flow rates stable. We will not hear anything about m195 until that pump, which isn't going to turn up until September is installed and stable flow rates are known, So factor in a possible month from now before hearing anything.

M45 is the one we will hear about soon.

Some presentations are well attended some are not, its a bit hit and miss those types of things in my view.

[ravin146] 16/8/2017 10:52

Agree with Cash.Its very simple sea7...It's time for results now...stop the pointless conferences, yet to even get a proper workover on board since Jan!Look at the pictures on twitter for yesterday conferences, I can count turnout on my hands!

[sea7] 16/8/2017 09:51

It might be inefficient in one sense, however, not raising a larger amount, plus a bit for "rainy days" ensures that they are more careful with what they have in the short term, as it is more time consuming to go through a raising process.

If they had raised a larger amount and had this cash swashing around in the account, they may be tempted to spend it on something unnecessary. I do not know many people who are very cautious and sensible with other peoples money in business.

I do not care what the raising looks like, as long as it is for specific purposes and keeps dilution to a minimum by only raising what is needed. No slush fund either.

[cashandcard] 16/8/2017 09:44

sea7,


That was me. I stand by the point, what consideration has been given in raising paltry amounts? its quite inefficient. They should forecast what's likely to be required, round it up, then add a contingency - then raise that amount.

These miniscule raisings look terrible because they are tiny PI-level raisings. It can be counterproductive and lead to investors thinking they struggle to raise money. Also, a constant conveyor belt of dulition stifles share price performance, thus a NAV/SP value gap becomes evident. This is where shareholders pay the price - it is the duty of directors to act to close such gaps.

If they need money, go out and raise more than enough in one go. Not everytime something needs paying for.


Cash

[sea7] 16/8/2017 09:33

andy,

so, far they have ensured that share issues have been small and targeted, albeit costing a 12k finders fee each time.

As long as they do not start showering the market with confetti shares for no real reason, then we should only really see small targeted issuance for specific reasons, such as kit purchases.

The much larger drilling operation further out, may need a bigger hit in terms of initial financing, however, I do not see that being possible with shares being issued, more like structured financing and term loans. Cheap warrants and options thrown in as deal sweeteners can be an issue and I will be watching out for them

[andy] 16/8/2017 09:28

sea7,

Yes that normally seems to be the way with small companies.

Sadly this negatively impacts the long term holder, unless placings are done at higher prices than the holder bought at, which is rarely the case in my opinion.

ZEn need to create shareholder value to avoid this hapenning.

[sea7] 16/8/2017 09:16

someone on here a while back wondered why they were carrying out small placements to fund kit purchases, this from note 22 in the rns yesterday may shed some light on it..


The Group’s cash flows from the Azerbaijan and Italian operations will be needed in the near term to finance the operations and repay vendor loans. Therefore, the Group’s principal source of funds will remain the issuance of common shares

So, in addition to tapping funding sources such as year long loans with rabitabank, they will resort to targeted share issues as well, as and when necessary.

[grannyboy] 16/8/2017 08:14

I'm sure ravin(lunatic) had me down on his filter list as having the alias Markyboy?, now he thinks Markyboys ammusing...

[ravin146] 15/8/2017 22:40

At least someone was excited about this presentation...Markyboy @AIMSHARESReplying to @Cassiopeia_ltd and @zenithenergyltdCould not make it tonight ,Hope you are able to show some footage of the event i am really buzzing about @zenithenergyltdLOL

[ravin146] 15/8/2017 15:37

For those that are attending...Zenith Energy @zenithenergyltd#ZEN #ZEE confirms CEO will attend Manchester investor conference tomorrow evening

[ravin146] 15/8/2017 14:09

What's the prediction for well 45 and 195?Total 350bopd?