Zenith Energy Share Discussion Threads

[sea7] 22/6/2018 11:15

according to the cpr,

MOC-1 has 14.8m net pay, average porosity of 11% over the pay zone and 32% water saturation.

They are talking about MOC-1 in the Horizontal drilling section of the cpr. They talk of the first well in the drilling program to be drilled vertically to capture as much technical reservoir information as possible, including cores and a modern suite of open hole logs. Once reservoir and fluids are understood the driling and completion programme can be designed to minimise reservoir damage and maximise the well results.

another extract from cpr...

The drilling programme will be undertaken with caution as there will be a learning curve from each new experience. Wells will be logged open hole, with a carefully designed programme. Current water contacts will be detected from the well logs and may lead to altered plans.

...............

Whilst it may seem to us that nothing is happening apart from share price destruction, when you read the cpr, it paints a very different story of some of
the ongoing work being undertaken.

[andy] 22/6/2018 11:11

sea722 Jun '18 - 10:46 - 3348 of 3351 0 0 0

Lse site has been down all morning.

-------

Just be grrateful!

[sea7] 22/6/2018 10:59

The gathering system and central facilites were shown as being expected to be taking
2,517 STB/d in 2020, however, this figure is shown as 1,768 STB/d In the 2018 CPR.

Upgrades to the system were expected in 2020, whereas they now state upgrades taking place in 2018 and 2020.

Production is expected to be at 14,845 STB/d by 2033 instead of 13,693 STB/d in the 2016 CPR. So an upwards revision here.

[cashandcard] 22/6/2018 10:55

Zengas,


It is quite shocking. This business is effectively dead, it survives from placing to placing, loan to loan. Cattaneo is out of his depth here, he needs to be kept on for a advisory role, but seriously needs to step down or be made to step down as boss. The amount of money wasted since IPO, has been shocking. They would have done better buying up second hand production assets with a much lower risk profile than the current ones. I have no confidence monies raised will be put to good use. I am also strongly of the opinion ZEN are committed to the wrong assets taking into account their size and clout (lack of it).


Cash

[sea7] 22/6/2018 10:51

They state in the 2016 cpr that they were producing approximately 300 STB/d from 64 wells, whereas in 2018, they state approximately 298 STB/d from 47 wells.

This does mean that 17 wells are gone, saving $510k per year on well costs.

Approximate production is down 2 barrels per day, according to this, so all the mediocre production from the abandoned wells, has been taken up by the improvements
made in the other wells, that have had work done on them.

It would appear that all that is really happening at this stage is a maintenance of production levels around existing levels and the focus on zardab.

[sea7] 22/6/2018 10:46

Lse site has been down all morning.

[sea7] 22/6/2018 10:46

I note in the updated cpr, they state that fixed field operating costs are $1.95m per annum, whereas the 2016 CPR states $1m per annum.

per month well costs are estimated at $2,500 per well, down from $3000 in 2016
variable costs have reduced from $10 stb down to $2.25 STB.

The first fixed field costs were on the historical data and a multi year budget provided by zenith, the updated one, is based on historical data and an expense spreadsheet provided by Zenith.

It would appear that zenith seriously underestimated the annual fixed costs, over priced the monthly well costs and seriously over estimated variable costs.

What does the data tell us, that despite their errors, they are quoting about the same overall amount, as in 2016, just with different figures for the same items.

[cpap man] 22/6/2018 10:07

This is seriously MEGA news from TSXv:LG



Jamaican Medical Cannabis Company, Global Canna Labs, Receives Cultivator's License from Jamaican Authorities
Canada NewsWire

MONTREAL, June 21, 2018

Symbol: TSX-V: LG

Immediate commencement of growing at its Montego Bay facility.
LGC Capital receives conditional approval from the TSX Venture Exchange for investment into Global Canna Labs.

MONTREAL, June 21, 2018 /CNW Telbec/ - LGC Capital Ltd. (TSXV: LG) ("LGC") is pleased to announce that Global Canna Labs Ltd. ("GCL") has now received its approvals from the Jamaican Cannabis Licensing Agency ("CLA") for its Tier-3 growing license for its 270,000 square feet facility within its 6.23 acres site in Montego Bay, Jamaica.

GCL's growing team is already on site and is preparing to start cultivation immediately. GCL will be planting 8,000 seedlings for its first cycle and its first harvest is expected in around 12 weeks. GCL is also commencing the expansion of its current growing facility in Montego Bay and is in late stage negations for the acquisition of an additional 300 acres of land in Jamaica.

LGC is also pleased to announce that it has received conditional approval from the TSX Venture Exchange ("TSXV") for its previously announced (see press release dated May 15, 2018) transaction with Global Canna Labs Ltd. Under the terms of the transaction, LGC will subscribe for a $2.5 million secured debenture, convertible into an initial 30% strategic interest in Global Canna Labs and will also acquire a 5% royalty on Global Canna Labs' net sales for $2.0 million, payable in shares of LGC. The terms have not changed from the news release issued on May 15, 2018.

Final TSXV approval will be subject to the following conditions, inter alia, i) receipt by the TSXV of satisfactory legal opinions and final documentation; ii) the setting up of controls and procedures to ensure that cannabis production is destined for the medical applications market and iii) the establishment of an ongoing monitoring program to ensure that none of GLC's activities are in contravention with current money laundering legislation as well the Canadian Criminal Code.

John McMullen, CEO of LGC stated, "LGC Capital is pleased to be partnering with one of the only approved Tier-3 medical cannabis producers in Jamaica. Tier-3 is specifically granted for large scale producers of over 5 acres in size. This is a very big milestone for LGC and Global Canna Labs. Global Canna Labs has proven it has the expertise to become a major force not only in Jamaica but in the global marketplace as well. I look forward to the rapid growth of the company and LGC will continue to support Global Canna Labs' efforts to supply a wide portfolio of organic medical cannabis products for both the domestic and global consumer."

Paul Glavine, President of Global Canna Labs states, "I would like to thank the GCL and LGC teams for working endlessly towards achieving this milestone. We are very excited to begin production and developing a truly organic brand in Jamaica.

About LGC (www.lgc-capital.com)

LGC Capital Ltd. is a Canadian incorporated public company listed on the TSX Venture Exchange (TSXV: LG). LGC's objective is to become a diversified business group with core business divisions that provide shareholders with exposure to a diverse range of businesses, products and services with an emphasis on significant investments in global medical cannabis sector.

About Global Canna Labs (www.globalcannalabs.com)

Global Canna Labs Ltd is an emerging cannabis producer which has just received approval from the Jamaican Cannabis Licensing Authority ("CLA") for a Tier-3 Cultivator`s License for its 6.23 acre site, which includes indoor and exterior greenhouses situated in Montego Bay. The Montego Bay site is only 10 minutes from the Montego Bay airport and sea port providing logistics access for facilitating global exports.

[sea7] 22/6/2018 10:06

I see someone bought 28,143 shares at 4.09p this morning, just after the bell and appears to have sold them at 3.95p a couple of minutes ago.

I guess someone thought the stock would bounce after the recent fall.

[zengas] 22/6/2018 09:13

A 354 page prospectus but given nearly all of the net money raised is for the rig 'deposit', i'm amazed they haven't given more details on the lease of an £8.1m rig because this is what the bulk of the money is for but to me this info is missing and critical.

What's the ongoing cost or how does the agreement work. How long is the lease for ?

Do they pay an ongoing monthly/quarterly cash payment or does the partner get paid in oil ?

None of this is in the prospectus that I can find anywhere other than the mention on page 131 of the Olieum JV.

In the RNS of 6th June 2018 "Robotics has agreed to provide its highly experienced drilling personnel for the first month of operations to assist Zenith's field team"

Surely as this is a significant commitment, one would have thought there would be more explanation of this so as investors know what the ongoing lease cost is (given the sizeable price of the rig) and is any oil being given up to pay for it.

[shapido] 22/6/2018 08:35

I will try not to be a mug again on this. They need to deliver before I am tempted to go in. Not just Z21, but consistently

[fatfish] 22/6/2018 08:12

the price will get lower and lower to attract the mugs. Trouble is when do I become a mug ??

[fatfish] 22/6/2018 08:08

I will average down at, below 3p only then at 2p

[andy] 21/6/2018 16:03

Granny,

LOL!


Primary Bid strikes again!

[grannyboy] 21/6/2018 15:54

Fricking hell..those that bought in at 4p, are now having to average down to keep up!!

[thetoonarmy2] 21/6/2018 15:22

Whatever happened to the well they were boasting about with oil flowing all over the place ?

[coscos] 21/6/2018 12:38

Everything that's happening here was obvious from months ago. Fake news and management.

[cashandcard] 21/6/2018 09:50

Zengas, #3324,


Well summarised. Company has ultimately achieved next to nil but dilution of shareholders. The only glimmer of hope they had was when the new OO came in last year and changed how they were doing the workovers. Unfortunately, that has not had the desired outcome of increasing production levels. Having been an eager investor since the float, I sold my position here some months ago. What did it for me was how AC decided to change the annual production target very late in the game. The changing of goalposts, to avoid looming failure, was unacceptable. Even more worrying is the direct dilution of shareholders via placings AND indirect dilution of assets by these loans that AC has taken out. What does it leave for shareholders if production is not increased? = placings to survive. Essentially, a complete change is needed at the top, then rationalisation and (if necessary) exit from these assets. Too much money, time and hassle for next to no return. A bottomless money pit comes to mind.



Cash

[andy] 21/6/2018 09:25

Bad Gateway,


Yes I would agree with that, "approximately" covers it, IMO, but clever to use a higher number and qualify it like that though!

[bad gateway] 21/6/2018 09:13

Do actually but he used the word "approximately" so no doubt lawyers would say they were close enough.

"As announced in our most recent production update, the Company has a daily average oil production of approximately 300 barrels

The oil we produce is classed as ‘Urals’ oil, not Brent."

[zengas] 21/6/2018 09:11

It looks a decent capital raise ie £2.1m but the cash goes quickly - £1.5m for the rig deposit and with it being leased, this money could be dead if they don't increase production and the rig company gets the rig back. The overall cost of the rig is £8.1m so I wonder why the company didn't give more detail on ongoing costs or how long the lease period is ?

£208,000 going for working capital is pitiful really and £311,000 is the cost of the placing and an additional 5% commission to pay for the primary bid raise.

I can see them having to dispose of the Italian ops to get cash and service loans/debt.

[andy] 21/6/2018 09:06

Bad gateway,

Do you still have the email?

Maybe there is some legal recourse if you do?

[sleveen] 21/6/2018 08:53

It wouldn't surprise me at all to see ZEN go bust in due course; say late 2019.