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That will generate nothing and the placings will continue. 5 placings so far in 2020 already! Every acquisition or attempted one has been another failure since 2017. This is a lifestyle company which wasn’t sustainable at $75-80 a barrel and it now expects to be at $40 a barrel. I reckon 3-4 more placings this year to keep those lights on.
"Under the terms of the conditional sale and purchase agreement ("SPA"), first announced to the market on April 20, 2020, signed between Zenith Energy Netherlands B.V. ("Zenith Netherlands"), a recently incorporated fully owned subsidiary of the Company, and KUFPEC (Tunisia) Limited ("Seller"), a 100% subsidiary of KUFPEC, KUFPEC's entitlement of oil produced from SLK since the date of signing of the SPA will belong to Zenith Netherlands.
It is expected that the production revenue generated since the date of signing of the SPA will be sufficient to fully satisfy the second and final Consideration payment to be made by the Company to the Seller for the Tunisian Acquisition by October 2020. Zenith does not therefore expect to raise additional capital to fund the Tunisian Acquisition."
Don't get me wrong, I'm not happy with the SP either and delivery of the previous work-overs has been dire.
I just think that the new strategy is a simpler strategy that plays to AC's strengths and that world events are creating an opportunity to potentially capitalise upon by buying producing assets on the cheap. He clearly has some ability in this area.
What deal has Cattaneo done that has benefitted the shareholders? When has he delivered in over three years since listing on the London market?
Deals are the way to go in the current Covid oil slump. Bargains to be had and AC is the man to get them. Others at it too, just look at I3E and Viaro/RRE deals for example.
Agreed at this price it is a no brained
Personally I believe 4-6p by year end the way AC pulling off these deals
I can't speak for long term holders - every board has a group who bought in at a higher price and hate the management - but to me as an outsider it looks like this could be a great investment opportunity from this price.
3years ago you would be paying many muliplies to acquire that amount of shares.
I'm afraid AC has destroyed LTHs with his carrot dangling at the end of a stick
Buys getting a bit bigger each day:
01-Jul-20 14:58:19 0.90 100,000 Buy* 0.80 0.90 900.00 O
02-Jul-20 15:46:42 0.8745 200,000 Buy* 0.80 0.90 1,749 O
03-Jul-20 13:23:23 0.90 300,000 Buy* 0.80 0.90 2,700 O
Probably only time missing a deadline was a good thing with covid imo.. definitely not a good time to have been drilling..
Did AC wake up with a big hangover the day after he posted on Twitter, and realized that he had signed the wrong contract? "Pond-based Tilapia culture is the only extensive aquaculture practice used in Congo."
Could that be why he is so quiet?
Kels, come on - look at the timelines and it is pretty obvious if you simply take of the anti-zen blinkers for a minute.
December 27th 2019 - Zenith announce initial agreement to acquire 80% of AAOGC for £1 million.
January 13th 2020 - Zenith makes available a loan to AAOG for £250k (deal all going ahead as normal).
February 26th 2020 - Zenith announces that they have begun negotiations for a drilling rig in the Congo (deal all going ahead as normal)..
March – Covid Happens – shares and oil price crash etc.
24th March 2020 – Zenith announces that they have renegotiated the Tilapia deal and dropping the price to £800,000 cash (the original deal is not going ahead as normal).
17th April 2020 – Zenith announces the acquisition is now for 100% of AAOGC for £200,000 (the deal is completely different from the original)
5th Amy 2020 – Zenith announce that the Tllapia deal is completed.
So between December and February when the original deal looks like it is going ahead as originally planned Zenith are discussing a drilling rig. Then Covid hits and while it may not have caused a complete shutdown of the Congo for the last three months it certainly shut it for a bit. It also meant that everything was up in the air and there was no point in booking a rig that they may not be able to use.
Finally, Covid completely changed the terms of the deal. Zenith were clearly not going to continue on the original terms and would have walked away if they had not renegotiated so they would not have needed the rig.
So, it’s all pretty obvious why the rig fell by the wayside isn’t it? I for one would certainly rather have an extra £800,000 in the bank account than a rig booked for a date we may not be able to use it for so hats off to AC for that.
Now we are in a position that we definitely will not book a rig in until the license has been renewed, so I would look forward to that bit of good news only after the license is already announced.
Not true kelsbells from Africa News 2nd May :
In the Republic of Congo, the population will have to endure further lockdown as the country finds ways in curbing the spread of coronavirus.
President Denis Sassou Nguesso in a national broadcast on Thursday (April 30), announced a 15-day extension of containment measures. This is the second round of lockdown the first of which started from March 31 until April 30.
The new date for a further review of the measure will be May 15. At the same time, the president also extended the country’s sate of emergency until May 10. He further announced that large scale testing for the virus will be undertaken.
The government has officially made the wearing of face masks in public places compulsory. The capital, Brazzaville, will undergo an orderly lifting of lifting of lockdown measures effective from May 16.
And 20/5
Since May 18 the Congolese population has been gradually returning to money making activities after 48 days at a standstill.
The Republic of Congo government recently lifted a few lockdown measures initially put in place to fight the spread of the coronavirus.
On March 31 the Republic of Congo began a total lockdown, including a nighttime curfew in order to deal with the coronavirus pandemic.
7p is very realistic but won’t be within the next 4 months imo. 2021 is the year imho where we may test through 10p if all goes well.
MG What’s naive and absolutely typical of zen over their lifespan Is putting out an rns on the 27th Feb saying they were in advanced negotiations to get a drilling rig and intend to commence drilling tilapia in Apr. And no covid didn’t stop them moving/achieving on that rns because there’s been no lockdown of any sort in the Congo, so why do it? I can only assume they wanted to keep their 100% record of over promising and under delivering
MG, I agree with you completely. Looking forward over months/years what do you see as the potential in your opinion? Do you think it will every get back to the 7p starting point and if so over how long?
It's not overly surprising that signing a 20 year plus extension to a potentially extremely valuable oil license takes longer than a couple of days Kels.
When you consider that Zenith only acquired Tilapia less than two months ago and that Andrea only arrived in the Congo for discussions on June 19th according to twitter I think that it is extremely naive to think that this will all be sorted within two weeks just because you want it to reach a 1.5p price so you can sell out.
You were complaining that the company had not received the whole $5.3 million from the SNCP within days of them acquiring AAOG Congo for $200k as well. I honestly think that you need to temper your expectations a little. We are clearly getting there and the license is clearly going to be renewed but stamping your feet and yelling "I want 1.5p NOW" is not going to help.
1.5p and higher is definitely coming but we are looking at a timeframe of months not days. I realise that you have been a holder here for years and want out, and that is absolutely fair enough, but considering how long you have been here then a few months more will not hurt will it?
Zen are clearly moving in the right direction and newsflow is imminent as the license extension has to be sorted this month. Just be patient for a while longer.
The treaty of Versailles was agreed and signed faster than this bloody license in Congo