Zenith Energy Share Discussion Threads

[zengas] 19/2/2018 15:14

I'm out here also. Can't see any catalysts to move the share price forward. I see they've also lost a lot of their primary targets for the workover programme due to the bad state of the wells. If they buy the additional producing assets, maybe that will be part of the 1000 bopd target which isn't what we want in making up that figure by year end ?. They could face the same problems there as they do here and put more stress on the company. Oil is there and may take a fresh look at it in the future, but at 3-4000m for new wells it's going to take some cash.

My heaviest investments are SAVP, i3e and UPL hopefully for the most significant upside.

[sleveen] 19/2/2018 14:31

AMER, but there is a persistent seller Rex Harbour.

AAU, gold production upgrade expected by end March.

JLP once the BMR situation is addressed.

Both gold and platinum near recent highs.

[scotty666] 19/2/2018 14:31

I3E I would definitely agree that is one for the list ahead of the GM end of this month. My largest holding so probably a tad biased, however a much better option than this !!

[buffythebuffoon] 19/2/2018 14:13

Hi Sleveen,

It always seems to cause problems when someone does that, but on the other hand, I am always irritated when someone says something like that and no more.

So.....there may be others deserving of a place in the list below, but for one reason or another they’re not.

SAVP
I3E
EME
TXP
JOG

I have a combination of shares and spreadbets.

It would be good to see other posters share their ideas.

Buffy

[sleveen] 19/2/2018 13:58

Buffy

...I can now concentrate on my quality shares with serious multibagging potential...

care to share?

[buffythebuffoon] 19/2/2018 13:45

I closed all of my spreadbets, and sold the shares in my ISAs and SIPP.

Unexpected decline rates were the icing on a very mouldy cake.

Having got rid of AAOG and ZEN, I can now concentrate on my quality shares with serious multibagging potential.

I omitted to properly research the backgrounds of Sefton and Cattaneo, and that’s a lesson I won’t forget.

I feel cleansed.

Buffy

[sea7] 19/2/2018 12:48

They do have their work cut out though with this delay. They have around CAD$7.5M of current liabilites due before end december 2018 - they have about CAD$4.5M in cash/receivables/inventory.

They have a negative working capital positon of around three million canadian dollars as at end december 2017.

[sleveen] 19/2/2018 12:06

My previous view was that Z28 would come good late Feb/March, which would propel the share price to perhaps 10-12p and then have a placing.

Edit by which time I would have taken a profit, which appears to be a common strategy with other posters here.

There is no chance of 10-12p this side of the loan repayment deadlines.

I'm out.

GLA.

[sleveen] 19/2/2018 11:58

Desperate to get the share price up...ready for the next placing.

[sleveen] 19/2/2018 11:55

How are these loans going to be paid for, most are due in the next 3 months?

US$ loan payable
As at March 31, 2017, the Company was indebted to a third-party lender for a US$1,485k (CAD$1,848k) loan payable, bearing fixed interest at 10% per annum.
The President, Chief Executive Officer and Director of the Company, has provided a personal guarantee to the lender in respect of the repayment of the US$ loan by the Company and the final payment of approximately US$1,485k is repayable on April 30, 2018.
As at December 31, 2017, CAD$1,860k (December 31, 2016 – CAD$2,000k) of principal is classified as a current liability and CAD$488k (December 31, 2016 – CAD$315k) of accrued interest is included in trades and other payables.

c) Euro bank debt (Italy)
On December 17, 2015, the Company obtained a €200k loan (CAD$302k) from Credito Valtellinese Banca of Tortona. The loan is unsecured, guaranteed by Mediocredito Centrale and bears fixed interest at 4.5% per annum and is repayable in 42 monthly payments of principal and interest until July 17, 2019.
As at December 31, 2017 the principal balance of the loan was €94k (CAD$140k) of which $92k is classified as a current liability and $48k is classified as non-current.
d) Euro loan payable (Italy)
On October 1, 2015, the Company acquired a cogeneration plant from a third party of which €401k (CAD$595k) of the purchase price was in the form of a loan from the seller. The loan is secured by the co-generation plant and bears interest at 3.5% and is repayable in 30 monthly payments of principal and interest until March 31, 2018.

As at December 31, 2017, the principal balance of the loan was €56k (CAD$84k) of which $84k is classified as a current liability.
e) US$320,000 General Line of Credit Agreement (Azerbaijan)
On April 5, 2017, the Company’s wholly-owned subsidiary, Zenith Aran Oil Company Limited, entered into a general line of credit agreement with Rabitabank Open Joint Stock Company (“Rabitabank”) up to an amount of US$320k (CAD$416k), for industrial and production purposes. The credit line was drawn down in a single tranche and as at April 6, 2017 it was fully drawn down. Rabitabank can postpone or suspend the facility if there is a decline in oil production under the REDPSA of more than 30% from production levels as at the date of first drawdown, or if the REDPSA is rescinded.
This Credit Agreement bears interest at a rate of 11% per annum which is paid monthly. The loan is guaranteed by the Company. The loan granted for one-year period. The 25% of the principal amount should be paid on quarterly basis.
On July 6, 2017, the terms of the repayment of the US$320k (CAD$416k) Credit Agreement were amended and the first repayment of the principal of US$80k was postponed to the end of July.
On July 31, 2017 US$20k (CAD$21k) was repaid and the balance of US$60k (CAD$63k) was agreed to be repaid on September 1, 2017. A subsequent credit committee decision taken in September 2017 amended the payment terms of the loan. The Company will pay interest on monthly basis and the principal total amount of US$20k has been paid on December 6, 2017. The balance of the principal amount (US$280k) will be repaid at a new maturity date of April 6, 2018.
As of December 31, 2017, the outstanding principal amount of US$280k (CAD$350k) is classified as a current liability.
f) US$200,000 General Line of Credit Agreement (Azerbaijan)
On April 12, 2017, Zenith Aran Oil Company Limited entered into a general line of credit agreement with Rabitabank up to US$200k (CAD$260). This Credit Agreement bears interest at a rate of 10% per annum. The loan granted for one-year period and the principal amount of the loan will be paid at the end of the period. The amount of interest is paid monthly. The loan is guaranteed by the Company.
As of December 31, 2017, the amount of US$200k (CAD$250) plus accrued interest was still outstanding. It is classified as a current liability.

[coscos] 19/2/2018 11:54

He can keep buying. I'm not prepared to accept any more missed targets and excuses. I thought they'd got things sorted on the ground but it's obvious they are kindergarten when it comes to the oil business. Thought he was Mr Underpromise who liked to over deliver? His goose is cooked.

[grannyboy] 19/2/2018 11:45

Haha!!cattaneo buying more shares in the hope of propping up the share price .that or he's more deluded then even I give him credit for!!!

[cashandcard] 19/2/2018 08:52

Good morning all,


Well that's the final straw for me. Extending a timeline is no problem, aslong as those doing it have a good track record of success. Unfortunately, I cannot say that about the management here, therefore I have no confidence in them to deliver on this new timeline. I've sold the remainder of my position here. Remaining shareholders, watch out for dilution, but good luck all.


Cash

[photon] 19/2/2018 08:16

I can see your point of view on the 9 month delay bad gateway, which is no doubt shared by most shareholders. I can also fully understand the frustration and why there would be great scepticism about the new timelines. I would just observe that Mr Palmer comes across well to me and, looking forward, I am now interested in following his progress in delivering revenue which would be in excess of the current market cap at current POO. He may not get there, but if there are tangible signs that he can, these shares are cheap.

[coscos] 19/2/2018 08:13

Good luck guys but I'm out. My patience finally ran out with the shady way AC runs this company. Over the years I've learned that jam tomorrow companies rarely deliver. He'll now move on to the next project to keep his salary paid.

[sleveen] 19/2/2018 08:07

Agreed move the goal post 9 months on and how many more placing and warrant exercises etc.

Also worried about the new info regarding poorer decline rates than expected.

[ravin146] 19/2/2018 08:03

Time to remove this CEO...lies after lies.He is a corrupt sock salesman.So the two wells won't even reach the 1000 once completed?!

[bad gateway] 19/2/2018 07:49

photon the timelines are the same as they were last year. He's just moved them forwards 12 months after guaranteeing 1000bpd by now in many interviews last year.
You should expect the same this year and hopefully by next Feb they'll still be on 350bpd not less imho.

[honestmarty] 19/2/2018 07:35

An open and honest update.

And honestly,

This is dreadful.

New lows in the SP?


Probably

[buffythebuffoon] 19/2/2018 07:30

Admirable consistency from this company.

Unemotional view:

Lots of problems, but one by one they are being solved. The COO seems a reliable solid chap, as opposed to the coiffured one. By the end of the year the share price should be much higher.

Slightly less unemotional view:

This company just hasn’t overcome the various problems faced by working over old Soviet wells. How many more problems will crop up? Surely there are better more reliable opportunities out there?

Emotional view:

I don’t care where the share price might be in some far off time. I’m getting out of this rubbish. Enough is enough.

I’ll let you know which camp I’m in after I’ve had some toast.

Buffy

[photon] 19/2/2018 07:30

As a relatively patient contrarian, I'm now more interested in this company than I was before, given the clearer information and more realistic timelines provided today. Mr Palmer sums it up well at the end of the statement and he is not a fool. At £11m mkt cap at Friday close and the delays already reflected somewhat in the share price, patient current and prospective investors will be watching Mr Palmer's progress this year with interest.

[harrissen] 19/2/2018 07:13

It's a bummer!

You should have exited on Friday matey.

[ravin146] 18/2/2018 21:23

I'll be doing the same but earlier, I'll exit before the funding that I believe will happens after the well results