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MG thank you for the confirmation re rig deploylment. Your noteS about the drill errors by AAOG are cosistant to what i have been informed. Seems that we both have a question mark around the licence renewal. Hoping that this will reach an agreement very soon. Enormous potential if the way is made clear, especially if the lower levels are explored. Very hopeful...
Agreed market they have control over their own destinies so we can get started on our own terms and start producing finally. Things are looking good let’s hope this ridiculous lockdown doesn’t slow progress however I doubt it as our operations are in Africa.
Excellent summary MG.........excited to see what the future holds here...........dyor
Docit – as GaryMegson pointed out, it has long been known that Zenith intend to use their own rigs to drill in Tilapia. They already own two rigs that they were using for work in Azerbaijan and since they have now completely gotten out from that region it will be easy enough for them to move the rigs to the Congo if/when they get granted the Tilapia license.
AC mentioned this out in his investor conference call back in August where he pointed out that Zenith have one stationary heavy rig and also a truck-mounted workover rig that they can use these rigs in whatever country that they want. This was reiterated in the annual report last week on page 8 of the where it sad: “In the event our Offer is accepted, the Company will look to deploy its 1,200hp drilling rig in the Republic of the Congo in order to begin drilling activities in well TLP-103C.” https://www.rns-pdf.londonstockexchange.com/rns/5456D_1-2020-10-28.pdf
The other thing that AC mentioned in the investors conference call was the fact that the reason so many people have been attracted to the Tilapia license is because of the amount of money spent on it by AAOG and that their well was never fully completed. He said that it is very clear what went wrong with the AAOG well and that this was the fact that the execution was poor. Thanksfully, they did not fully complete the well as this may have damaged the reservoir structure, but because they didn’t then all Zenith have to do is deepen it by drilling a sidetrack which is technically convenient and not a complicated process. The investors conference call can be heard here: https://www.youtube.com/watch?time_continue=9&v=_xs0jhkcieE&feature=emb_logo
So, in short, Zenith have their own rig to drill Tilapia and they know the mistakes that were made in AAOG’s previous drill as well as how to rectify them. All they need to do now is to get a new 25 year license handed to them and while this is not 100% certain the picture of AC with the DRC President here: https://twitter.com/CattaneoGenoa/status/1321781146091401220 and the comments in the annual report that “We are confident that we shall be successful in obtaining a new 25-year license” indicate that they have been given some good assurances that they will receive this license imminent.
I can’t help thinking that the fact that Zenith have their own rigs and would therefor be able to conduct a long-term drilling campaign without having to wait for new equipment would be a big reason that the DRC govt would choose to grant them the license rather than one of the other applicants. It just makes everything much cheaper, quicker and simpler.
Already stated in the results they would use there own rig
The only very rich i can see, wouls be the higher management. Tilapia had issues on the last drill and needed to be closed. The idea was to drill for the 5000 bpd. However they needed to seal and go back in from 2/3 down. I would guess now that if the new licence is agreed then they would need financing for fistly securing a new rig and secondly the re drilling. Not sure if zenith can secure the 5mill where AAOG could not succeed. Plus we need to consider what the % split would be for the revenue realised from the oil extracted. Potentially if this goes Zeniths way then ultimately they would have several well at 5000bpd and if i remember, a deeper exploration well at 50,000bpd per well.
astro the share price in Oslo is still 0.4 flat.....
How come they get oppo to dump not us
TYB.... explain very rich... if you dont mind...
Time will tell
However if Tilapia is sealed lots of people buying at 0.4-0.5 will be very rich.
I believe it will let’s see if I’m right or wrong
Having owned shares In AAOG for quite some time prior to the sell off to Zenith and being involved with all the shortfall. I recall that the licence renewal had been going on for at least a good 1 year prior to expiry date, without success i might add. I even met with DC who was clear and positive about the drill outcome being above and far beyond expectation. However licence renewal was not forthcoming and if it wre easily possible then i would assume they would of renewed it well beyond the sell off as it would have been financially advantagous to AAOG. May i add that i did buy into Zenith with the hope that Tilapia would reach fruition. However to date it seems to be promises that are going the same way as the Predecessor. Hoping i am wrong. Only time will tell.
You should put it in zenith at 0.4p and make your money back :)
And have still got multiple times that in the bank Lol lol
realists who lost 250,000.......lol
Investverysmart I don’t think derampers ( otherwise known as realists) are keen on being “butt hurt” !!
I assume you mean 'signed off' Ivs, because if the paper-trail has been signed he is obliged to send out an RNS. And I agree with you, that it is starting to look like a sure thing as he now is a returning guest at the Presidents premises. Why would he else spend so much time in a country where you risk getting served a handful of the deadliest virus-****tails nowadays, plus not forget the Cannibalism?
I think that photo of AC yesterday pretty much confirms that Tilapia has been signed off.........if he does pulls it off thats great business by him....butt hurt derampers will complain even if the share price flies......dyor
Regardless of individual opinions much of the success of Zenith rests on what happens with Tilapia and the receipt of the Socar money. If the 25 year license is received and the $5.3 million is paid then nobody can argue that buying the asset for £200,000 was one of the all time great small-cap oil deals and we have to take our hats off to AC for that. Everything rests on Tilapia and Tilapia is looking good in my opinion. All the noises from the annual report and from yesterdays tweet indicate that Zenith are very confident of getting hold of both the license and the money. Not long to wait now.