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come on SNPC make a move on..............!
Fakevenues,
Yes. The operating permit was granted to Trident OGX on 14.12.2021 [as I posted on 06,02,2022 albeit with reservation as to reliability of the report] but the “process of transferring the MKB II permit ie concession from SNPC to Trident was launched on 17.05,2022”. The photo appears to relate to the second event as implied by the “Legendes et credits photo”.
@AGEOS
You are aware that the award was 14.12.21?
Décret n° 2021-539 du 14 décembre 2021
sgg.cg/JO/2021/congo-jo-2021-51.pdf
Thankyou Mr AGEOS- agree we should hope to see movement and get Tilapia over the line.:)
Hope to make receipt of $6.4M which would be wonderful! Also Rob-1 update last 5 weeks ago so we should defo hear something positive to get another 100 barrels online. Then get on to other drilling.
If we can state intention for a share buyback we will immediately make large blip notice for larger investors.
Oil price high and with the opening of Far East now we should see large increase in demand for oil. Need to get a move on. Good luck all.
As posted on Friday, at 09.42, the award of the MKB operational license to Trident OGX, suggests that the Ministry of Hydrocarbons may also be in the final stages of progressing the award of the Tilapia II license, as anticipated in favour of Zenith. Bruno Itoua, the new Minister of Hydrocarbons, had declared on appointment his intention to expedite development of the Fields controlled by SNPC and specifically mentioned MKB as the primary concern. Having now it appears, achieved that objective, it seems reasonable to assume that Tilapia II, the only other Field currently under direct SNPC control, will be similarly resolved.
On 12.04.22 in a post regarding the Tilapia II contract, I mentioned [para 4] that Maixent Raoul Ominga had been reappointed as Directeur General of SNPC despite the efforts by Bruno Itoua to replace him, and conjectured that the inevitable mutual enmity between these two might impact on a successful conclusion of the Tilapia contract. However, the apparent conclusion of the MKB deal suggests that Itoua has the upper hand in negotiations involving SNPC assets, so providing some reassurance that the Tilapia contract should be unaffected.
Political dynamics at this level are complex and inevitably affect economic outcomes so I note that the photo accompanying the May 18th news item to which Fakevenues supplied a link [see his post 19.05.22, 23.11.], shows the Minister Bruno Itoua [3rd from left[ seated next to Maixent Ominga [4th from left] and the new DG Ministry of Hydrocarbons Stev Onanga [5th from left]. These are the same three whom AC will be negotiating with regarding Tilapia. Ominga and Onanga have close ethnological links to the President.
The loss of at least part of MKB [ assuming the Tchiniambi Field is included] as a potential “second asset” is disappointing but not altogether surprising; after all, Orion Oil paid $150m for a 20% interest in 2013 and although then based on a wildly optimistic assessment of there being 1.3 billion barrels of oil reserves, Trident OGX obviously believe it still has significant potential. As I posted on 06.02.2022, Trident appear to be basing their interest in MKB on a study of the Mengo Reservoir so their relative success or failure in enhancing production will have relevance to the Mengo at Tilapia. MKB lacks an equivalent to the Tilapia Djeno reservoir but has the deeper Vandji prospect.
This plus the May 10th EUR 1.3m loan “to provide additional financial support for the achievement of its business development objectives in the Republic of the Congo” suggests Tilapia II negotiations may not be far from conclusion.
AGEOS.
@Fakevenues Intriguing. :)
@Callit
If my suspicions are correct, the warrants will never be purchased by this particular "financial institution". :-) )
IMHO It would be a smart move to pile all that oil cash into a buyback at these levels, get the SP up, and then let the lender take their Warrants @£0.17 & £0.21 served back out of treasury, flooding cash back into the coffers.
GLA DYOR
"Do you think we’ll hit 1.5p if it comes in?"
Well Mls,
Above about 1.25p, ZEN looks to me to have no real chart resistance 'til about 2p, & little to about 3p, & even 4p.
So bearing in mind the undervaluation here already, then I would hope for a move to well above 1.5p on such transformational news:
23rd Dec 2020 7:00 am RNS Successful bid for Tilapia II
" ... Andrea Cattaneo, Chief Executive Officer of Zenith, commented:
"Zenith's selection by the Ministry of Hydrocarbons of the Republic of the Congo as the successful bidder for Tilapia II is an exceptional achievement and is the product, amongst other qualities, of our unwavering commitment and perseverance in pursuing our development strategy.
The Company is now positioned to benefit from a potentially transformational asset with highly prospective development and exploration potential in a prolific hydrocarbon basin where we shall be able to deploy our drilling equipment to perform operational activities in agreement with our local partners at a time of increasing recovery in oil prices.
Further, it is a matter of great satisfaction that the Company has been able to resoundingly vindicate its confidence in its ability to achieve its publicly announced objectives in the Republic of the Congo, specifically in relation to Tilapia II.
The Company can now look forward with well-grounded confidence to the journey ahead in the Republic of the Congo and the possible achievement of other publicly announced objectives, including the potential acquisition of additional oil production assets, as well as obtaining repayment of the approximately US$5.7 million owed to the Company by SNPC." ..."
https://www.lse.co.uk/rns/ZEN/successful-bid-for-tilapia-ii-lz7ofr8ipunko20.html
April 22nd RNS states ‘US$6.4 million and are to be paid during the month of May 2022’
So expect some fireworks next week. I will try and load up a bit more today :)
Yes Mr IS Tilapia seem to be taking some time now … although I think £10M income over next months should defo have the good effect. Also I would like to see said ramp up of Tunisia assets.
Rob-1 should be conclude soon and then hope to see a quick move on to Rob-3 and the side tracks (we can afford it! ).
And a real bouncer will be any sort of share buyback scheme for the same which will immediately put ZEN on the radar of large investors.
Do you think we’ll hit 1.5p if it comes in?
Tilapia shouldn't be are off imo..........but lets see we have waited a while..........dyor
Fakevenues; thanks for the link to what is a significant development.
In my post of 06.02.2022 regarding the involvement of Trident OGX Int Pte Ltd in an MKB Field production potential study, I maintained a previously outlined proposition that MKB in part or whole might be the “second production asset” first announced by ZEN in an RNS of 07.07.2020. Clearly this latest announcement confirms that the MKB Concession will henceforth be shared by Trident OGX, Orion Oil Ltd [controlled by Lucien Ebata], SNPC [state oil company] and the Congolese government, and operational control is granted to Trident OGX for 20 years.
Although this removes MKB from the ZEN list of potential “second assets”, it provides some reassurance that the Ministry of Hydrocarbons may now be about to move on the Tilapia concession also. As previously posted [20.07.2021 & 08.08.2021], Bruno Itoua the new Minister of Hydrocarbons, was highly critical of Maixent Ominga CEO of SNPC for not having developed the MKB Fields, and had also appointed Stev Onanga as DGH [Directeur General des Hydrocarbures] within the Ministry to expedite this and other developments. Onanga was previously General Manager of SONAREP, the Research & Production subsidiary of SNPC, with responsibility for the State's interest in both Tilapia and MKB.
With the MKB II licensing process now underway it seems likely that Tilapia II will follow shortly.
AGEOS
Oil: Trident OGX will exploit the MKB II field
Wednesday, May 18, 2022 - 5:30 p.m.
The American company managed to take operator status on the MKB concession ( Mengo, Kundji and Bindi), operated until then by the National Petroleum Company of Congo (SNPC). The process of transferring the MKB II permit from SNPC to Trident OGX was launched on May 17 in Brazzaville, bringing together all parties involved.
Negotiations for the transfer of the MKB II concession involve the company Trident OGX, Orion Oil LTD, SNPC and the Congolese government. They aim, according to the parties, to strengthen the collection of data with a view to increasing the production of the oil field. The operating permit was granted to the American company by decree no. 2021-539 of December 14, 2021, for a period of twenty years.
The launch of the transfer of the operating license of MKB II to Trident is an important step in the development of the oil block, estimated the managing director of Trident OGX, John W. Chisholm. " It's about seeing how we are going to work together in the spirit of collaboration and partnership and to mobilize experts in order to strengthen the capacities of the SNPC, to share and analyze block data, to maximize production ,” said John W. Chisholm.
A study conducted by the SNPC for the reassessment of the hydrocarbon potential and the implementation of the development plan on the MKB II field revealed the existence of areas of interest not yet exploited, as well as the need to use new technologies better suited to the characteristics of the fields, with a view to boosting production. The results of the seismic reprocessing and reinterpretation are very interesting and confirm the potential of the block.
The deposits of the MKB field were discovered in the 1980s, the site is composed of three deposits (Mengo, Kundji and Bindi) located respectively 15, 20 and 25 km from the Djeno oil terminal. The MKB II production sharing contract was signed in June 2018 by the State, SNPC (60%) and Orion Oil LTD (40%). SNPC took over these fields and carried out two 3D seismic surveys, over a total area of ??240 km². It has drilled and brought into production eight wells, which produced 1,437,440 barrels, on the Kundji field alone.
https://www.adiac-congo.com/content/petrole-la-societe-trident-ogx-va-exploiter-le-champ-mkb-ii-137877