Zenith Energy Share Discussion Threads

[sea7] 11/9/2017 18:38

talking of updates, it was 12 days ago that malcy said he was speaking with andrea, nothing heard since.

[sea7] 11/9/2017 16:28

We only know what we are told in updates. The inner workings of the company will only be known by those on the inside. I doubt very much whether they do not have any handle on costs.

They will have decided on a rig, more data will be have examined, the rig decision was revisited, a new one decided upon and the additional costs covered by a small equity raise.

[ravin146] 11/9/2017 16:25

sea711 Sep '17 - 16:09 - 496 of 496 0 0
I am sure that they are acutely aware of cost control.

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Personally I am not sure/confident entirley that they do have cost under control or within a budget, as they seem to be making it up as they go along. eg suddenly getting a bigger rig and issuing equity to not knowing exact deliverery dates of ESP which add to costs.

We will not know for certain on cost and revenue until teh next accounts/trading update.

[sea7] 11/9/2017 16:09

I am sure that they are acutely aware of cost control.

[ravin146] 11/9/2017 16:00

sea7 it is all very well, we have gradual rise in revenue, but costs need to be kept an eye on.

I hope BoD understand, that shareholders current view is that this is still a low budget workover program, that is relatively self sufficient, i,e not a lot of fund raising required.

[sea7] 11/9/2017 11:50

tks Bad gateway,

good solid production increases demonstrates good progress, even if it is slower than expected and with some setbacks. The cost reductions going forward, owning another rig will take a while to unfold, however, the benefits outweigh the initial cost and dilution.

[bad gateway] 11/9/2017 11:44

Agreed sea7. imo They had a policy of cheap and cheerful which didn't work for them and now they've had to change it on the hoof so to speak.
At the moment all I'm looking for is a gradual production increase, don't give a damn about their 1k promise (unless the z's come in)its just increased revenue I want.
Impressed with the placing price if not the dilution.7p doesn't seem at all bad esp if this board is a measure of sentiment for the stock.

[sea7] 11/9/2017 11:37

The plans keep changing because the results they are getting in these early stages are dictating it.

If nothing, it proves that they are continually adapting and changing plans to achieve the objectives. They are addressing issues and maintaining flexibility.

Sure we haven't had any powerpoint presentations about stated objectives or targets, however, what would be the point, when it would be superseded by a plan change the following week, based on what we know so far.

[ravin146] 11/9/2017 11:32

sea7, it is what most of the posters here are saying but you seem to go off topic and comment on other topic/positives- like a politician!

good find btw...

sea711 Sep '17 - 11:16 - 488 of 490 0 0
sp angel view..

• Zenith Energy (LON:ZEN/ CVE:ZEE – 7p/C$0.11) – Funding to What?: While we’re certain that today’s announcement of an equity issue to fund the acquisition of a workover rig, given what we know about the Company’s plans makes sense, it is difficult to put it in the context of what it means for shareholder value. The management team need to articulate their plan, providing us with adequate milestones to measure their performance.

www.proactiveinvestors.co.uk/columns/sp-angel/28559/today-s-oil-and-gas-update-columbus-energy-resources-plc-jersey-oil-and-gas-plc-mosman-oil-and-gas-mayan-energy-providence-resources-plc-tlou-energy-ltd-zenith-energy-28559.html

[ravin146] 11/9/2017 11:29

Sea7,

I have noticed, you clearly do not take jks well, nor get them lol

Btw, 1000bopd, is a set target to be achieved by end of March 2018. (reiterated by the CEO at the Manchester seminar)

Any sign that they are looking unlikely or for definite they will not reach the target, the shareholders will react.

So far they have, and the share price has fallen to the current price, probably will fall further after today's dilutive equity issue.

Lets call it a day,

[cashandcard] 11/9/2017 11:28

sea7,


What share price Angel are stating is no different to what many of us have been saying, other than year-end (1st year) exit figure, there is no way to measure performance. We didn't even know until a couple of weeks ago, what the average daily production run-rate was. There are no investor presentations with identified objectives and phased targets towards the 1,000bopd overall target. The bbls in the ground only come into play when it can be demonstrated they can be produced. Even then, it is very hard to put a risked/unrisked value on this if plans and objectives keep changing.


Cash

[sea7] 11/9/2017 11:16

sp angel view..

• Zenith Energy (LON:ZEN/ CVE:ZEE – 7p/C$0.11) – Funding to What?: While we’re certain that today’s announcement of an equity issue to fund the acquisition of a workover rig, given what we know about the Company’s plans makes sense, it is difficult to put it in the context of what it means for shareholder value. The management team need to articulate their plan, providing us with adequate milestones to measure their performance.

www.proactiveinvestors.co.uk/columns/sp-angel/28559/today-s-oil-and-gas-update-columbus-energy-resources-plc-jersey-oil-and-gas-plc-mosman-oil-and-gas-mayan-energy-providence-resources-plc-tlou-energy-ltd-zenith-energy-28559.html

[sea7] 11/9/2017 11:11

I do not work for zen.

[sea7] 11/9/2017 11:04

no ravin, they have to be at 1.5 times the stated production level within two years of the approval of the production and rehab plan by socar, or socar reserve the right to terminate the agreement.

This level is about 465stb/d.

March 2018 is ahead of this schedule and 1000bopd is much more than the bare minimum needed to maintain the agreement.

[ravin146] 11/9/2017 10:58

cash, agree entirely.

[ravin146] 11/9/2017 10:58

sea711 Sep '17 - 10:51 - 483 of 483 0 0
well ravin, perhaps that is why you are getting so annoyed. This is a 25 year programme and they are in no hurry at this stage.

The rehab programme is underway and forward planning for the drilling programme is taking place. This rig purchase and down payment on the drilling rig, is part of this forward planning.

You may not be looking that far ahead, however, the company is.

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WOW either you have a lot of money here or work for ZEN.

"This is a 25 year programme and they are in no hurry at this stage."

Sea7 I'm afraid they are in a hurry, they need to get 1000bopd by end of March, or this company may need to head back to Canada.

[sea7] 11/9/2017 10:51

well ravin, perhaps that is why you are getting so annoyed. This is a 25 year programme and they are in no hurry at this stage.

The rehab programme is underway and forward planning for the drilling programme is taking place. This rig purchase and down payment on the drilling rig, is part of this forward planning.

You may not be looking that far ahead, however, the company is.

[cashandcard] 11/9/2017 10:51

sea7,


Lets not get ahead of ourselves here. Lets try to achieve big workover result on Zardab (or even more wells flowing like C26) before we start worrying about the cost of seismic. We are crawling, so trying to run before we can walk is a bit off really.


Cash

[ravin146] 11/9/2017 10:44

sea7, "We are being updated on progress as and when required or deemed necessary."...necessary to them.

sea7, I afraid I dont look that far into my investment...dont give a cr£p about the drilling campaign, until they can successfully workover a single well!

btw we have received twitter updates on z-28...thay have begun site work.

So far still waiting on the first hurdle, well 195...

[sea7] 11/9/2017 10:39

whilst people complain about the company raising small amounts of cash via equity, the expected total cost of seismic, which is scheduled to be run from 2020 to 2024, is
$20,000,000. Then there is the cost of drilling wells.

I am more interested in seeing how they achieve this, than worrying about issuing small amounts of equity, to purchase kit.

[sea7] 11/9/2017 10:36

ravin

a significant number of companies simply issue quarterly ops updates. They do not issue live updates every day. We are being updated on progress as and when required or deemed necessary.

[ravin146] 11/9/2017 10:32

Sea7: "I see no reference to them committing to informing the market"

I personally don't give a cr£p, once news is ready, release it! They should not be allowed to be sitting of news and not releasing it!

- When did they know they wanted/required a larger rig? Before or after the Manchester seminar?

- When did they know well195 would be delayed once again? Before or after the Manchester seminar?

- When did they start perforating well c-26, when were we aware? how did they do this before announcing their strategy the next day?


They should not be allowed to be sitting of news and not releasing it, especailly when in between they are raising cash and the CEO is buying shares!

[coscos] 11/9/2017 10:22

I'm still a holder here but have to say the the company is run more like a local corner shop than a professional outfit. Andrea will be calling his brother up next asking for a few euros to pay an outstanding bill which he forgot about.

[sea7] 11/9/2017 10:15

It also depends on which shop they are using to do these placings with. This one may only deal in smaller amounts, which they feed back into the market over a period of time, after taking a fee from zenith.

They may not be in a position to attract much larger amounts. Further down the line, they have costly seismic and drilling to do, which is yet to be funded.