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Gonna crack open the Umbongo!
Coz they drink it in the .....!
Have a good weekend all!
GL.
How many barrel are we currently selling at $84 :-)
Uplift in Robbana hopefully coming, approval for the Tunisia assets and related funds for the same!
Then have tilapia and another Nigeria asset in review. Nice to going into weekend.
Seems that it takes very little to move this down hear.
Tilapia monday would bring the Herd and 2p+!
Prefer Robbana then Tilapia and 3p+!
GL.
Another possible driver of investor interest is that the Congo [Brazzaville] Conseil de Ministres is meeting today at 14.00hrs so understandably there is speculation that Tilapia might be on the agenda. The recent increasing frequency of meetings, ie on Oct 7 & 12 indicates a possible end to months of legislative inactivity, so maybe Stev Onanga the new DG of Hydrocarbons will finally present this for ratification by Council. We will know by Monday.
If Rob-1 results are good I will expect a big shift in the share price.........hopefully some news next week touch wood.........dyor
Hope the authority have seen to that ZeN are committed and can get the job done for the same!
Boost in output followed by approval will be fantastic. Again followed by Tilapia for ultimatum boost and said sp!
yep looks like its Robanna lets see what their results bring.............if anything good we should get a huge uplift to finally test and potentially break the 1 year high and then en route to test 4p once Tilapia comes............still cheap to buy now at 1.2 imho.......dyor
I agree with MGS I think that the news out of Oslo must be Robanna as the company said in their 12/10 RNS that they expect ROB-1 operations to be concluded in 10 days. There are always delays in oil company timescales but we are expecting this any day now. Also, the Oslo rise is not significant enough for it to be news on Tilapia. I would expect a really big uplift when than news is about to strike and at least 2.5p on official confirmation. But that is good for me as it means good news to come and then even more good news to come. We all know that Tilapia is going to be the real big driver for Zenith, it is just a question of when we get the news.
not much in the way for another run..........we need a trigger of good news though..........dyor
Understood MarketGunslinger good post.
The buy signal is Norway it’s leaky there, no idea what the news could be but maybe Tilapia or a positive Tunisia update or a left field Nigerian announcement? Let’s wait and see but it’s looking very good for a retest of 1.5p.
Hi Gary, yes you are absolutely right that the rise in Norway has meant that the two markets are now even in price, but the point that I was trying to make is that Oslo seems to be a leakier end to the Zenith ship than London and that the price has in the past risen there ahead of news being announced. This is what I think is happening at the moment.
If I am right and the rise in Oslo is indicative of good news imminent from the Robana workover then we should be at the top end of the projected increase in production and should show an increase of approximately 50-60bopd.
With oil prices as they are today $83per barrel then this additional 55bopd that should be produced by the ROB-1 workover would be worth $1.6 million per year in gross income. Assuming that the production cost is $23 per barrel then this should be $1.2 million net to Zenith per annum.
However, I think that there is more potential to Robbana than we realise. We know that the only reason that ROB-1 is not already producing 50+ bopd is because the botched well intervention by the previous owners got it stuck at this low rate. The Robanna concession as a whole was discovered in 1988 and peaked at 500bopd production in 1994 even though ROB-1 and ROB-2 were the only two wells ever drilled there. In short, we know that there is plenty of oil at Robbana and it has flowed in large volume in the past.
We also know that that Zenith has plans to drill a third well at Robbana and have said in their RNS that a successful infill well (ROB3) that is planned to be drilled nearby ROB-1 would be expected to produce 200bopd and cost $1.5 million.
These predicted $1.5m cost of the ROB-3 well is really interesting though as it is pretty close in numbers to the $1.2m in net revenue that ROB-1 should deliver if my production cost estimates are correct. This would mean that it would be very easy to get further debt funding from Winance or someone similar to drill ROB-3 and service the debt out of the production from ROB-1. The trick can then be repeated for any additional wells drilled in Robbana.
If Rob-1 produced 50 bopd then it would be worth $1.1 million per annum net to Zenith
If Rob-1 produced 100 bopd then it would be worth $2.2 million per annum net to Zenith
If Rob-3 produced 200bop then with would be worth $4.4 million per annum net to Zenith
If things go well with both this workover and then Rob 3 then for a total expense of $2 million the company could have a profit of $5.5 million per annum from Robanna for the next 5 years plus.
The first step is a successful workover of ROB-1 and as I said at the beginning I think that the indications coming out of Oslo suggest that this could be good.
Agreed good volume and price movement in Oslo but the price is now comparable to UK correct me if I'm wrong..
As has been commented here there was a significant bump in the price in Norway yesterday and that is a good indicator that London will follow soon. The best example of this was last Christmas when Oslo rose massively for two or three days before London caught on and then the stock re-rated significantly from 0.75p to about 1.4p.
I think that the information driving this price rise must be to do with the Robana workover. We know that news is imminent with this and the pre-news movement of the Oslo markets suggests to me that somebody already knows that this news is going to be good. After all, this was exactly what happened last Christmas – the share price is Oslo went up significantly before the news was announced. This was not coincidence, somebody know something and I feel that the same tthing is happening again.
Only a small top up IVS. I’ve held the bulk since 2017 but averaged down a lot. Here’s hoping
Should hear something soon. Oil price high so success increase here will do wonders for the same!
But more of important is showing Tunisia / Tilapia / Nigeria that they can get the job done!
Sp will follow as so much to update on. GL.
mls good timing on your buy...........looking very healthy here should translate to the uk market soon.......gla
Yep looks like something has leaked looking for a push to 1.5p expecting some big buys here before close.
+14,88% in Oslo
Leak?
Just jumped to +9%
Now +7% on OE market.
Anyone got any comments from their board??
Up 5.23% volume looking nice............dyor
Pressure looks tobe building here!
Good news and boom!
Great news and the herd 2p+!
GL.
Looks like something may have been leaked? Lots of buys over there