Zenith Energy Share Discussion Threads

[sea7] 19/12/2017 11:10

M45 - Success - 1.5bopd to 49bopd - not as much as hoped.
m66 - success - 0bopd to 50bopd
c21 - success - 0bopd to 50bopd
c26 - success - 0bopd to 70bopd

5 other esp replacements adding another 14 bopd.

Total uplift in production - 233bopd. Current production was 350bopd. 219bopd from the four wells listed is yet to appear in production figures - should be in the Q3 numbers.

M195 on the back burner, as they clearly had issues with it and are still waiting for a pump - we assume.

z28 progressing towards production - leaking seal needs repairing - workover interrupted whilst repairs carried out. Then carrying on where they left off.

z21 about to begin.

m63/m67/m87 being worked over - probably having ESP installed.

Whilst progress is slower than anticipated, it is progress nonetheless.

[cashandcard] 19/12/2017 10:38

granny,


Whilst frustrating, Z21 could well be the closest to an actual producer we get. I'm happy we are moving onto it. Problems are problems, they have to be cautious and get it right.

For those who are new, this was the (sudden) blowout of Z21;




Cash

[grannyboy] 19/12/2017 10:24

Z28 was supposed to he a turning point...now its Z21....

With this company its a continual jam tomorrow outfit..always finding reasons, and excuses for the constant delays and incompletions..

[buffythebuffoon] 19/12/2017 08:05

At least the company was pleased to provide an update.

Slop on some pollyfilla and we’re away.

I assume the wellhead was built by the same people that built our new aircraft carrier.

Buffy

[cashandcard] 19/12/2017 08:04

Well, another delay - but the exciting Z21 well is ready for workover. Bring it on!Cash

[sleveen] 19/12/2017 07:54

A delay, who'd have thought it?

[someuwin] 19/12/2017 07:40

ZENITH ENERGY LTD.

("Zenith" or the "Company")

Zardab Field Operational Update


Zenith Energy Ltd., ("Zenith" or the "Company"),(LSE: ZEN; TSX.V: ZEE), the dual listed international oil & gas production company operating the largest onshore oilfield in Azerbaijan, is pleased to provide an operational update on wells Z-28 and Z-21 in the Zardab field, Azerbaijan.


High-impact workover of well Z-28

The Company confirms that it has cleaned out well Z-28 to reach the top of the slotted liner at a depth of 3574 metres. The top of the tubing can now be cleaned to total depth ("TD") at 3944 metres. As announced by Zenith on November 20, 2017, the inside of the tubing has been cleaned out to the depth of 3582, 14 metres deeper than the reported liner top (3568 metres) in the original well data. Zenith's operational team views this as a major accomplishment in the context of the well intervention, particularly as this was achieved following successful fishing operations, including the running in hole of a free point tool, enabling the tubing to be cut and jarred. Once this was carried out, Zenith's operational team ran in the production tubing to a depth of 3574 metres, set the wellhead and fully completed the rigging down process of the ZJ30 truck-mounted workover rig on December 18, 2017. The Z-28 wellsite is now clear and preparations have been completed to run a coiled tubing unit ("CTU") to TD from the top of the slotted liner.


In the post-workover inspection of the wellhead, Zenith's petroleum engineers observed a leak during a pressure test from the wellhead in the 9 5/8 inches casing seal assembly.

To resolve this problem, the Company has contracted a UK-based, worldwide leader in oilfield leak-sealing technology, with an established presence in Azerbaijan. Zenith has been informed that various resin compounds will be required to successfully seal the wellhead following an engineering study currently underway by the aforementioned company. Zenith expects the estimated completion time of this study to be delayed by the upcoming holiday season in the United Kingdom and Azerbaijan, and to have fully completed the workover of well Z-28 by the end of January 2018.

The Company's operational team is highly committed to completing the Z-28 high-impact workover successfully and without incident. The risk of compromising the integrity of the wellhead by running the CTU to TD, specifically with the leaks from the casing on the wellhead observed, has been determined to be an imprudent risk that may have endangered the success of the Z-28 workover and resulted in a blowout.

The Company will provide an update when the wellhead leaks are fully sealed and the CTU has subsequently been mobilised and run in the hole.

High-impact workover of well Z-21

The Company confirms that civil works on the roads to well Z-21 and at the well location have been fully completed.

The average wellhead pressure recorded has increased from 3675 psi, announced by the Company on November 20, 2017, to a current average shut-in tubing and shut-in annulus pressure reading of 4115 psi.

Zenith's operational team is currently mobilising a workover rig to the wellsite to begin the high-impact workover of well Z-21 without delay.

The Company will provide an update when the workover of well Z-21 begins following the mobilisation of all necessary equipment.

Mike Palmer, Chief Operating Officer, Zenith Aran, the Company's Azerbaijan-based fully owned subsidiary, commented:

"I know that operations at Z-28 may appear to have taken a long time. However, from the outset there was relatively little in terms of data on this well, and we have progressively established that what data we had was incorrect. From all the work we have done we now understand this well, specifically the downhole configuration, characteristics and behaviour. Indeed, from what our team has seen in well Z-21 it is clear that there is a very strong prospective pressure in the formation that these wells produce from. We are convinced that there is a big prize to be had once we finish. We have been good stewards with the money invested in the operations so far and have accomplished a great deal in overcoming a number of difficult challenges thrown at us at significant depths. If it wasn't for the wellhead leaks we would actually be in a very good position to complete operations at Z-28, right above the liner with tubing, ready to drill out with a coiled tubing.

It is unfortunate that the seals for the 9 5/8 casing are not holding, causing leaks that must be fixed before we can run a CTU to total depth. We are in contact with one of the top companies in the world specialised in this. Even though the holidays are upon us, we will be working with them to come up with a design that will fix this problem early in January. We are working tirelessly to make sure we come to a positive conclusion as soon as possible, and achieve the great production result that we all believe can be achieved from well Z-28.

I am also pleased that, whilst we wait for the seals to be completed at well Z-28, we will soon be in a position to begin the workover of well Z-21.

The entire operational team is fully dedicated to achieving the best results possible in a field where we know there are extremely significant quantities of oil to be produced, but where there are also a number of unforeseen challenges presented by old, deep wells with inaccurate well data and old infrastructure that needs repairing."

[buffythebuffoon] 18/12/2017 18:27

Malcy didn’t write 3bbls, he wrote 3,000bbls.

/- is 1,000.

Buffy

[davidspringbank] 18/12/2017 16:29

I hope Malky's wrong and we make more than 3 bbls day by 2020.

[someuwin] 18/12/2017 16:04

Malcy's Blog

18 December

Zenith Energy

I mentioned last week that I had been to visit Zenith Energy and spend some time with senior management in Azerbaijan, ZEN is a low-cost onshore producer in this mature but substantial oil province. Zenith has production of around 350 b/d with impressive plans to substantially increase this number through development and using technological expertise and has plans to get to 3/- b/d by 2020. The company has very low costs and thus these cash generative assets can work at oil prices significantly lower than those of today.

I visited the Muradkhanli oilfield which was discovered in 1971 and has produced over 16m bbls of oil to date and saw the wells M-63, M67 and M87 all of which are being worked over. The company has decided that there is a need here for electrical submersible pumps and are sourcing these at the moment. The wells have a high water cut but the field performance has so far been predicated on such behaviour and once up and running will be very profitable and close to a pipeline. I also visited the Zardab field where well 2-28 has a high impact workover under way and also well 2-21 which had a freak blow out in October. Pressure here continues to rise and is being monitored before being reentered. The field shows scope for sand management to avoid build up and could become very profitable indeed.

At present Zenith is concentrating on workover of these wells and achieving cash flow from them, in due course ambitions are much higher, with the opportunity to get ahead with an infill drilling programme that could make serious inroads into the substantial reserve base. This will be helped by the fact that Zenith is in the process of buying its own new rig which when on site make a significant difference. That reserves figure of 2P proved and probable is 32.1m in a CPR this year and it carries an NPV of $435m at a 10% discount. You wouldnt have to make many inroads into that to make the company look extraordinarily cheap. Despite publicised difficulties with old Russian wells looking like a fly tipping operation, staff on site are confident of ultimate recovery.

I met with Mike Palmer, COO who is very impressive and also a number of other senior geologists who are amongst a number of highly respected operators in the region. Senior management, including Andrea Cattaneo the CEO, are clearly not averse to working on site and pooling intelligence in order to improve operational results. Zenith has a good management team, strong enough finances and a very substantial reserve base all of which give the company substantial growth potential. Very much one for the watch list…

[buffythebuffoon] 18/12/2017 14:58

Ravin, if that was the case retailers would be making announcements all the time.

In the old days you’d get interims and finals for operational/trading updates. Then the yanks demanded quarterly updates. Now people want to know who sneezed.

I accept that exploration wells need to be reported on immediately, but where there are, for example, multiple workovers, do we really have the right to expect a blow by blow account.

I’m not talking specifically about ZEN here, just general company reporting.

Buffy

[ravin146] 18/12/2017 13:04

That is price sensitive information and I hope the regulator cut this bullshyt rule slipping.Anything related to trading revenue of a business need to be RNS!

[buffythebuffoon] 18/12/2017 12:08

Ravin,

While I agree that AC is a bit looselipped, I’m not sure there was anything price sensitive at the meeting. Only three pumps installed? Possibly I guess.

I am also expecting more than Z28 news, but that’s the biggie.

Buffy

[ravin146] 18/12/2017 11:14

Fair enough buffoon.I'm surprised the CEO stated 18th December and not deliver.I am expecting a full trading update not just on z-28. Price sensitive information that was released at the investor meeting must be document imo.Gla

[buffythebuffoon] 18/12/2017 10:51

Ravin,

100% he said that. Neither of us can control his actions, but just report his words.

It won’t be a disaster if it takes an extra day or two.

If I had to bet on a day, it would be Friday morning.

Buffy

[grannyboy] 18/12/2017 10:00

Yes.. As in..'clear as mud'...

[sea7] 18/12/2017 09:51

yep sure is

[thelung] 18/12/2017 09:33

That's Muddy.....

[sea7] 18/12/2017 08:36

Word on the lse board is that the rig has moved off the z28 site - from a poster who works in the area and took a look yesterday.

[ravin146] 18/12/2017 08:19

"buffythebuffoon - 14 Dec 2017 - 14:36 - 1317 of 1326 - 0It’s a reasonable question.I wouldn’t class the information as material news, but maybe some would.The type of news detailing how many pumps are installed is the sort of information often given in company quarterly updates.Anyway, let’s see if AC is as good as his word (repeated at least three times) that Z28 news would be RNS’d by 18th Dec."Where's the news then? You stated your brother went, you sure this info is correct?

[ravin146] 17/12/2017 17:39

Muddy,I didn't mention is was not legal. Louis Hamilton's private jet vat avoidance is legal too!Spread betting is not a tender of shares, as no underlying shares are assigned to him...it's a leveraged bet.Z-28 will need to be completed and successful or this will head lower imho

[muddy_40] 17/12/2017 17:32

Ravin,

I am sure he is playing by the book, and his financial advisers will know their onions from apples. Really the sell and opening a spread bet is like a transfer of shares.

I think we will have news on Z28 tomorrow from what i seen today.

[ravin146] 17/12/2017 16:41

Tax avoidance, leveraging etc...I have no idea how this CEO is getting away with 'closed period' rules you normally see at other oil firms.Also why aren't other directors buying?

[grannyboy] 15/12/2017 21:43

Well its a positive, IF the news from the w/o's are positive..