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Tag: ZEN

  • Zenith Energy Update. Binary Play….

    Zenith Energy Update. Binary Play….

    It was good news yesterday for the much beleaguered UK and Norwegian shareholders of Zenith Energy (LON: ZEN). The Company returned from their self-imposed suspension after the audited financial results for the year ended March 31, 2020 were released. And lets face it, 2020 hasn’t been a ‘vintage’ year for the markets in general, not least the Oil & Gas sector which is still struggling to come to terms with the Global Covid 19 pandemic and a wayward (Falling) oil price.

    So, that being said lets get into the nuts and bolts. As I see it at the moment for me it’s a binary play. I’m stripping out Tunisia, Nigeria etc. The jewel in the crown is Congo, reports of the loss of the Tilapia licence have to coin a phrase ‘been greatly exaggerated’. The Congo licence expired as per the terms of the licence. (Which was known by every serious O&G investor, writer and market watcher before ZEN bought it for peanuts).

    It’s custom & practice on ALL O&G licences, they expire. Standard operating procedure on expired licenses is a renegotiation if both parties,  Ministry of Hydrocarbons of the Republic of the Congo and Operator wish to go forward. That’s exactly where things are as of today! There’s also the small matter of the return of $5.3M back to the Company, which has to be, again, negotiated.

    Mr ‘Zen’ & Congo President Denis Sassou Nguesso. He gets about does Cattaneo!

    One, even begrudgingly, has to admire the dedication of Andrea Cattaneo (CEO), in spite of the ‘relentless Tom Winnifrith hate campaign’ he’s been ‘in situ’ Congo for over 6 weeks working tirelessly for his shareholders. I spoke to him yesterday.

    To give you an idea of his schedule; 7am Business correspondence, transport organisation for various government meetings. 9am Breakfast. 9:30am-4pm is taken up with various visits & meetings with government depts. Once back at his hotel he liaises with Tunisa, Nigeria etc For updates and also updates staff at the ZEN office. 5;30pm late lunch, 9pm shower, light meal, then more calls and email correspondence 11pm bed. Wake up start again. That’s a gruelling schedule in 30 degree heat. So let it not be said that ZEN are sat on their arses….

    Should Zenith Energy come back with the goods then their SP will rocket. Tilapia is potentially the make or break deal. I can see see 2p-4p with the proviso of a successful outcome.

    As I understand it negotiations are soon to be concluded. That’s the ‘binary play’.

    ‘Ya pays ya money ya takes ya chances’.

     

    Good luck

     

    Dan

     

     

  • (BNS) Brokerman News Service Zenith Energy & the ECHO connection…

    (BNS) Brokerman News Service Zenith Energy & the ECHO connection…

    Operations at Zenith Energy (LON: ZEN) are finally beginning to bear fruit. Todays RNS on their well M-195 workover is very good news for the Company and its share-holders, you can read that RNS by clicking HERE.

    However it’s not todays good news that I’m writing on it’s the rumour/s that Zenith Energy are in detailed discussions with Echo Energy ((LON: ECHO). Now I don’t know what the discussions specifically involve but using my powers of northern common-sense, rather like Sherlock Holmes, it’s elementary my Dear Watson… Zenith must be after the Echo East Ghazalat 25% concession. We know that it’s up for sale, we know that it’s currently producing circa 100 barrels of oil per day and we also know that it’s in legal dispute. And we also know there’s other production opportunities on assets in that portfolio.

    There’s no chance of the current holders of the concession ever sorting out the problem which they created. But there is a good chance that if Andrea Cattaneo, ZEN CEO, gets the asset he’ll be seen as a ‘clean pair of hands’ and will be able to quickly remedy the dispute with the new top Chinese official now parachuted into Egypt to sort out the dispute. Cattaneo is a smart cookie and well known as a man who can negotiate. Just look how he’s ended up in Azerbaijan with a field now on it’s way to producing 1,000 barrels of oil per day…

    Now here’s me thinking out of the box. What could possibly be the deal? Well I’d expect that cash and ZEN shares or some form of future cash payback once the dispute and production is sorted out and back on track. Revenues currently owed to whoever gets the asset amount to circa $1.3M, sadly this is offset by the Chinese operator claiming production expense of circa $2M, but this like all bits of the dispute, can be and will be negotiated down by the right ‘clean pair of hands’. Now here’s a thing if ZEN offer ECHO shares in the deal then obviously Echo Energy would become a Major Share-holder in Zenith. There’s one thing I do know and that is that Echo would rather take ‘/cash/paper/promissory note’ in a genuine producing oil company than a Toxic POS like Nostra Terra Oil & Gas. Now if Echo were a major share-holder in Zenith what would they do with the stock? Could they then go on to buy them out or stick a Director on the board or maybe just quietly sell, who knows but it’s an interesting discussion I’ll be having with many a source this week. I’ll be in London Wednesday.

     

    Viva!

    Daniel

  • Zenith Energy. Update & RNS translation for the simple minded….

    Zenith Energy. Update & RNS translation for the simple minded….

    I can’t believe what I read today from Zenith Energy (LON: ZEN). It’s actually good news in a small way. However the RNS is poorly constructed and in my opinion there was no need for it. This information should have been tagged onto the well M195 workover RNS which sources indicate should drop later this week. Thus saving ZEN the cost of yet another RNS at £250 a pop!

    The RNS today states the Company have increased production by 14bopd. Now what investors are miss interpreting is that this isn’t the workover programme. These are minor tweeks, small mechanical upgrades to existing infrastructure in the field. The work has been completed by salaried staff. This is employees conducting day to day work duties. There’s no cost to the company other than spare parts etc.

    These small upgrades have increased annual cash-flow by circa $250,000. Do not confuse them with the Workover Programme.

    The news the market awaits is the bopd numbers from the workover of well M195. This has had a full workover.  We know that it’s Azerbaijan, the  bureaucratic process is somewhat convoluted. The workover is complete. What we await is official confirmation, the signing off of the workover by the Azeri state ministry etc. What could the oil producing figures be? Any thing from 30-60 bopd. When you extrapolate and forward think this number then you can see the potential rise in daily production.

    The news that the shysters at Gunsynd (LON: GUN) have yet again converted stock and are actively selling is one of the things beyond the control of the Company. This is taking the sp down. However the sooner these fookers are out the better.

    Now here’s the latest rumour. We know that their CEO Catteneo is a deal maker. We know the team are in Baku as we speak, Zenith maybe in asset negotiations for further oil producing assets in Azerbaijan and more than likely in Italy and Africa. Just where and what those assets are isn’t yet known. But believe me we will try to find out….. One thing is certain there are deals in the pipeline and the history here tends to repeat, i.e a deal for a producing asset/s that have been poorly managed.

     

    Great company. Lot of potential as always research etc.

     

    Viva

    Dan

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