Zenith Energy Share Discussion Threads

[themagicman] 12/1/2023 00:38

Yeh I remember the Azerbaijan days, my wife is actually from Azerbaijan she divorced me :(

[muddy_40] 10/1/2023 18:51

Remember Azerbaijan oilfield was the largest onshore field in Azerbaijan 642 m2

Just saying like

Deja vu

Oh Dear

Good tick up today,🤫488;😉㈺4;

[wapit] 10/1/2023 15:31

If it all comes off.... Block-1 represents a potentially transformational development opportunity for Zenith because of its sizeable unexploited potential...

[muddy_40] 10/1/2023 13:24

Hope the get them over the line for the poor long termers..got to admit he is a trier..still needs significant cash and resources to develop these things..

Gla long termers

[ntv] 10/1/2023 12:23

interesting deal

[wapit] 10/1/2023 09:28

Looks like Yemen done, now we all off to Benin for a vacation...wtf happened to Congo

[muddy_40] 09/1/2023 14:47

The magic copy and paste..Steph paying overtime this weekend busy in the other place...how is Angus doing?

[themagicman] 09/1/2023 11:57

Firstly - On November 14th 2022 zenith released the RNS entitled Opening of Representative Office in Yemen where Andrea stated that: “We are very pleased to have opened a representative office in Yemen. The team and I have had the opportunity to visit Aden and to have fruitful interactions with the country's local authorities”.

Secondly - It is also obvious that OMV would not have signed the SPA with Zenith unless both they and Zenith had had a conversation the Yemeni authorities that would have given some degree of positive indication that the transaction could be approved.

Thirdly - There is the following tweet from a Yemeni geologist and consultant on the matter which states that negotiations between all parties have been ongoing for the last four months:

Fourthly - The link that Callit posted yesterday also provides further evidence that the Yemeni authorities were fully aware of the transaction going through right up to presidential level. It explained that the current position of the oil ministry is due to a dispute between the President and the oil minister about the distribution of funds from the sale: hxxps://www.dailyyemen.net/2023/01/06/aden-oil-commissions-spark-disputes-between-pm-and-oil-minister/

In short, the statement that you have made alleging that the Yemeni authorities are unaware that Zenith have been negotiating with OMV for the acquisition of their Yemeni assets is clearly untrue. Whether this is because you have a poor grasp of the documentation on the subject or because you enjoy deliberately making negative posts on Zenith I leave for others to decide.

[muddy_40] 08/1/2023 16:15

Badgateway

At least you only have 9 months to wait to be put out of your misery with this deal.. unlike 3 year and still counting with Congo..this could be TYB's love child. It will be 9 months until he gives birth to a young foal . ..wonder who the papa is

Ho ho ho

Oh dear.

[muddy_40] 07/1/2023 16:14

Oh Dear..feel sorry for people believing the above waffle from other place..

Yemen govt rejects Zenith Netherlands oil acquisition
"The internationally recognized government of Yemen has flatly denied a statement by international oil company Zenith Netherlands regarding the acquisition of oil fields managed by OMV in Yemen’s southern province of Shabwa, saying that the company is ineligible to acquire oil assets in the country.
Yemen’s Oil Ministry said that it had not authorized the sale of OMV oil facilities in Yemen to the Dutch company, accusing both companies of releasing “misleading” information.
The Yemeni ministry said that for any purchase deal to be approved, the purchasing business must be multinational, well known, as well as financially and technically competent.
Zenith Netherlands does not meet the ministry’s financial and technical conditions for relinquishing OMV’s shares, it added."

[muddy_40] 04/1/2023 18:29

Waffle

Oh Dear

[themagicman] 04/1/2023 12:52

Here are my initial thoughts on the acquisition based on the current oil price of USD$85. They can be best summed up by "it looks big".

At the current production rate of 6,000 bopd and production cost of $28 per barrel then the gross output of the field should be delivering $324,000 worth of oil per day.

The financial interest to Zenith Energy Netherlands is 57.14% which means that their share should be USD$195,418 per day and Zenith Energy LTD’s share should be 49% of this which is USD$95,755 per day. Over the course of the year this amounts to: USD$35 million per year.

At the historical production rate of 15,000 barrels of oil per day then the financial interest to Zenith Energy Netherlands would increase to USD$488,547 per day and Zenith Energy LTD’s share should be 49% of this which is USD$239,888 per day. Over the course of the year this amounts to: USD$87 million per year.

Obviously there will be some details in there which have not yet been announced such as the share of the oil production taken by the Yemeni government in tax but even if this is 50% (which is the absolute maximum level that I can imagine it being) then we are still looking at an initial revenue of USD$17 million per annum (at a production rate of 6,000 bopd) and an eventual revenue of USD$43.5 million per annum (assuming that we can get production back up to the 15,000 bopd level). This is also all from an initial investment of USD$10,809,500 which looks like it will be earned back in about 8-9 months of production at existing levels.

[themagicman] 04/1/2023 12:48

Here are my initial thoughts on the acquisition based on the current oil price of USD$85. They can be best summed up by "it looks big".

At the current production rate of 6,000 bopd and production cost of $28 per barrel then the gross output of the field should be delivering $324,000 worth of oil per day.

The financial interest to Zenith Energy Netherlands is 57.14% which means that their share should be USD$195,418 per day and Zenith Energy LTD’s share should be 49% of this which is USD$95,755 per day. Over the course of the year this amounts to: USD$35 million per year.

At the historical production rate of 15,000 barrels of oil per day then the financial interest to Zenith Energy Netherlands would increase to USD$488,547 per day and Zenith Energy LTD’s share should be 49% of this which is USD$239,888 per day. Over the course of the year this amounts to: USD$87 million per year.

Obviously there will be some details in there which have not yet been announced such as the share of the oil production taken by the Yemeni government in tax but even if this is 50% (which is the absolute maximum level that I can imagine it being) then we are still looking at an initial revenue of USD$17 million per annum (at a production rate of 6,000 bopd) and an eventual revenue of USD$43.5 million per annum (assuming that we can get production back up to the 15,000 bopd level). This is also all from an initial investment of USD$10,809,500 which looks like it will be earned back in about 8-9 months of production at existing levels.

[themagicman] 04/1/2023 12:47

Interestingly, I was looking up reasons why OMV would sell such a significant asset for so little money and I discovered that they announced back in June 2022 that “The intended divestment is based on OMV's strategy of reducing the share of oil in the portfolio." hxxps://www.spglobal.com/commodityinsights/en/market-insights/latest-news/oil/062922-omv-says-it-is-trying-to-sell-yemen-assets-as-part-of-oil-divestment

Their motive fits in exactly with something that AC has been saying for a long time now which is that many major oil companies are under pressure from shareholders to decarbonise their portfolios. He said this almost word for word back in the investor conference call in Feb 2022 when he mentioned

“the opportunities that come from majors and second-tier majors abandoning their overseas assets. The supermajors want to get away from any producing field that is not vital for their cashflow.”

He was also more specific when he said that:

“(Major) oil companies are generally leaving medium size countries and fields and are only focusing on huge fields (usually offshore) which deliver their cashflow. Getting rid of their smaller fields allows them to say that they are getting out of “bad” fossil fuels but it gives opportunities to companies like us. We can therefore do quick transactions with the majors and don’t have to go through governments, We are also an operator and are recognised as such by 5 countries and majors and ministers will not allow the purchase of these marginal fields by somebody who is not an operator.”

It looks like we have seized just such an opportunity in the acquisition of the Yemen asset. OMV have decided to “reduce the share of oil in the portfolio” and it has allowed Zenith to pick up a very significant producing asset on the cheap.

I think that the line AC mentioned about Zenith’s producer status is also very important in this transaction. It is no coincidence that the previously dormant Zenith Energy Netherlands B.V entity has been used as the acquisition vehicle for this transaction with Hingbo Industries Company Limited taking a 51% stake in this entity on 30th December 2022. It is clear that Hingbo bring money to the transaction but I think that it is unlikely that they would have entered the deal with a company that was not able to operate the asset. AC has always been very clear about the importance that he attaches to Zenith’s operatorship and it appears that he has been right.

I would also like to say a big hats-off to our CEO for setting out a strategy over a year ago to acquire large assets from major operators at discounted prices as they respond to pressure from the environmental lobby. For a long time it appeared that this was just a dream but with this acquisition it has proved that the strategy really does work and Zenith have now acquired a significant share in a major asset for a very low price.

[themagicman] 04/1/2023 12:45

Only dodgy to you because you have a vendetta against the company and will create any false narrative to get revenge because you lost loads of money on the back of Azerbaijan :)

[themagicman] 04/1/2023 12:42

Repost

Interestingly, I was looking up reasons why OMV would sell such a significant asset for so little money and I discovered that they announced back in June 2022 that “The intended divestment is based on OMV's strategy of reducing the share of oil in the portfolio." hxxps://www.spglobal.com/commodityinsights/en/market-insights/latest-news/oil/062922-omv-says-it-is-trying-to-sell-yemen-assets-as-part-of-oil-divestment

Their motive fits in exactly with something that AC has been saying for a long time now which is that many major oil companies are under pressure from shareholders to decarbonise their portfolios. He said this almost word for word back in the investor conference call in Feb 2022 when he mentioned

“the opportunities that come from majors and second-tier majors abandoning their overseas assets. The supermajors want to get away from any producing field that is not vital for their cashflow.”

He was also more specific when he said that:

“(Major) oil companies are generally leaving medium size countries and fields and are only focusing on huge fields (usually offshore) which deliver their cashflow. Getting rid of their smaller fields allows them to say that they are getting out of “bad” fossil fuels but it gives opportunities to companies like us. We can therefore do quick transactions with the majors and don’t have to go through governments, We are also an operator and are recognised as such by 5 countries and majors and ministers will not allow the purchase of these marginal fields by somebody who is not an operator.”

It looks like we have seized just such an opportunity in the acquisition of the Yemen asset. OMV have decided to “reduce the share of oil in the portfolio” and it has allowed Zenith to pick up a very significant producing asset on the cheap.

I think that the line AC mentioned about Zenith’s producer status is also very important in this transaction. It is no coincidence that the previously dormant Zenith Energy Netherlands B.V entity has been used as the acquisition vehicle for this transaction with Hingbo Industries Company Limited taking a 51% stake in this entity on 30th December 2022. It is clear that Hingbo bring money to the transaction but I think that it is unlikely that they would have entered the deal with a company that was not able to operate the asset. AC has always been very clear about the importance that he attaches to Zenith’s operatorship and it appears that he has been right.

I would also like to say a big hats-off to our CEO for setting out a strategy over a year ago to acquire large assets from major operators at discounted prices as they respond to pressure from the environmental lobby. For a long time it appeared that this was just a dream but with this acquisition it has proved that the strategy really does work and Zenith have now acquired a significant share in a major asset for a very low price.

[officerdigby] 04/1/2023 10:54

It looks dodgy to me.Let's see if ZEN 100% liable for the costs. When only getting 49% of the revenues.I not the licenses were already squiffy against OMV on that financial liability > working interest.

[mdchand] 03/1/2023 21:44

I would love to know why Hingbo simply didnt buy the assets outright, or failing that, set up a Company in the Netherlands. I guess it was because Zenith had negotiated exclusive rights, or managed to negotiate with both parties simultaneously and the deal came together?

[officerdigby] 03/1/2023 17:19

.. with the obvious bung to whoever hingbo is?..Perhaps a connection to Yemen oil ministry??.