Zenith Energy Share Discussion Threads

[ravin146] 22/8/2017 19:18

Zenith EnergyZenith Energy @zenithenergyltd·1h#ZEN #ZEE confirms successful installation of Schlumberger ESP at well M-45 in Azerbaijan ...I told you the tweets will continue, maybe the recent can't be tweeted earlier as it RNS material

[ravin146] 22/8/2017 15:53

Under promise and over deliverOver promise and under deliverI'm hoping it's the first statement.Slightly annoyed at the CEO stating investors wrongly stating delays, when there have been delays! Just because this is a long term story of 25 years, doesn't mean investors will be looking at medium term success first before investing for long term. Hence time management, cost saving and importantly the workover progress is key here!Gla

[the foxthe fox] 22/8/2017 13:21

Exclusive interview with Andrea Cattaneo, Zenith Energy CEO
WATCH

[cashandcard] 22/8/2017 12:01

£23k worth of shares that buy. A decent amount, more is needed.


Cash

[ravin146] 22/8/2017 11:50

Well AC just bought 300k

[ravin146] 22/8/2017 11:38

I'd like other directors buy shares, not just AC

[sea7] 22/8/2017 11:25

Yep, as they are buying another 11 pumps, for wells they have identified, which should increase production by 219 bopd at these wells, then the upfront cost, against payback time, will have been deemed acceptable to the company.

The key part of this is, what is an acceptable timeframe for payback.

As we do not know how much bespoke pumps are costing to instal, then we won't have any idea on payback times.

They should be starting some seismic at some point, which isn't going to be cheap.

[muddy_40] 22/8/2017 11:23

Regarding the well flow,I wouldn't be surprised if the well initial flow was 46, then maybe fell back and has now been enhanced by the ESP, maybe the initial 46 bbls was not sustainable without ESP,this we will never know...

On another point, I see someone picking up 100k blocks of shares..maybe the CEO free to purchase now since the news out

[cashandcard] 22/8/2017 11:04

Sea7,


agreed. I'd rather they spend the ESP money on new drilling in optimum locations, than ESP's that can only achieve 10%-ish increments to well production.

Lets see what happens.


Cash

[cashandcard] 22/8/2017 11:02

muddy,

Will do when I get a moment.


Cash

[sea7] 22/8/2017 11:01

as someone said somewhere else, 3 bopd increase would be an embarrassment for schlumberger as well. So we should expect increases in time, once they are satisfied with the settings of the pump.

[muddy_40] 22/8/2017 11:00

Cash,

As I said before,I think we may see the production figures on the website, you should email Andrea your concerns I am sure he will take note.

Ravin,

I think these ESP's may be the strategy of Mike Palmer, he is now running the show in the field,so he should know full well what is needed.

[ravin146] 22/8/2017 10:59

Cash tbh they released this too early, should have released it after the esp was fully installed.

[cashandcard] 22/8/2017 10:53

If the ESP's can only deliver 10% increment at optimum pressure levels, I would suggest its money wasted and they should forego them.


Cash

[ravin146] 22/8/2017 10:42

Cash I understand not providing a monthly update...as they have yet to fully finish a workover so is there any point?The most important thing now is how much a boost will these ESPs make?And also the cost of these?I didn't realise buying ESPs was part of the origami workover plan...I thought low budget repair jobs. Yes these are apparently bad ESPs for these 11wells but was that not spotted before?

[cashandcard] 22/8/2017 10:39

muddy,

I wish they would give a monthly, or more realistically a quarterly production update. Instead they just mention it by word of mouth which is not very professional at all.


Cash

[ravin146] 22/8/2017 10:21

Sea7, agree with cash.Well 45 can not be deemed a success if the ESP only yields 3bopd extra. It will be a wasted time, effort and money.I am expecting them to reach near 150bopd.Gla

[muddy_40] 22/8/2017 09:35

Cash,

As per presentation last week they were producing 350bbls in AZ, I would imagine with W45 we are now at 400. he also said that lifting costs at moment are about $20 and would decrease to $8 at 1000bbls

[cashandcard] 22/8/2017 09:28

I have to say, it really begs the question whether 1,000bopd is an attainable target given what we know. They need wells that flow consistently at rates greater than 50bopd and they need to give an overall production run-rate on a regular basis.

No one here knows how many barrels are being pumped thus its impossible to go into a deeper cashflow or net returns analysis of the business. I will email them again when I have a moment, seriously need to reinforce the message to AC and others.


Cash

[sea7] 22/8/2017 09:21

true cash,

by quoting figures, they give an optimistic target and then get shot down when they miss it. They should really say nothing about expected rates after pump installation.

Under promise and over deliver should be the way things are done.

[pugugly] 22/8/2017 09:14

Also what is missing is the cost of the pump - cost of installation - expected life all critical (imo) as to whether a profitable operation or navel scratching.

[sea7] 22/8/2017 08:25

yep ravin "should be able to" - they give theirselves a margin for error with that statement.

We will see, once optimisation of the well has been completed, whether or not they will be able to build on the success achieved to date of taking a well from 1.5bopd to the current 49bopd.