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That seems very good news. Andrea's had a lot of bad luck with the way the different territories he's tried to operate in have treated ZEN in the past, good to see things finally going the co's way.
Hope he makes the most of it.
Https://www.upstreamonline.com/exploration/kazakhstan-rules-to-boost-private-investment-in-oil-and-gas-exploration/2-1-1578327
Kazakhstan’s President Kassym-Jomart Tokayev has signed legislation designed to simplify rules and regulations governing oil and gas licensing, with the bill published at a governmental website at the end of December.
The new rules are geared to attracting more local investors in a domestic industry that has seen few significant discoveries in recent years.
The amendments, approved by the Kazakh parliament last month and set to go into effect in March, apply to oil and gas blocks acquired in auctions or in direct lease negotiations with government authorities.
The changes will not apply to production sharing agreements with western and Chinese energy majors under which the country’s largest oil and gas producing fields are operated, including Tengiz, Kashagan and Karachaganak.
Foreign operators of such projects have been forced to deal with Astana's increasing tax demands and fines for alleged lack of environmental compliance.
Under the amended rules, authorities will no longer have the right to impose fines on Kazakh or foreign explorers that opt out of acreage after they have conducted initial seismic data gathering.
Currently, Kazakhstan officials typically require licence-holders to drill at least one appraisal or exploration well during the initial exploration period.
The amendments also require authorities to extend the term of an exploration licence if the operator needs to conduct additional appraisal work.
For existing developments, an operator will be able to apply for an extension to a production licence no later than six months before it expires, rather than the previous deadline of 24 months.
The amendments reduce the amount of paperwork potential investors are required to submit in periodic oil and gas lease sales, and also shorten the time from application to start of exploration by eight to 12 months.
The rules also make it harder for authorities to disqualify bidders because of technical errors in applications and other documents.
The amendments envisage future tax breaks for producers that operate mature and depleting oilfields, but details about the size and type of concessions will be spelled out in subsequent legislation.
Authorities also ruled that state-owned KazMunayGaz or one of its subsidies should have at least 50% interest in all new major oil and gas developments in Kazakhstan
The Kazakh government has welcomed the approval of the amendments, saying they “will give an additional impetus to investments in geological hydrocarbon exploration" that authorities hope to reach at least 200 billion tenge ($450 million) per year.
Closed +3.45%
I agree it could be if they are successful with their purchase of 50% of Devonian, along with getting their $25M bond sale off, move their rig to Kazakhstan with no issues then set it up and drill a gusher moving plenty of resources to reserves .
Then holders are in for a very good year and at the end of the day this is ZEN so what could go wrong?
(position holding a few considering a few more)
Bammo 2024 is going to be our year, just ask Nicetomichu he agrees with me
Lets hope finally 2024 will reward us the long suffering holders AC should complete one deal at least in 6 years , happy new year all
Zengas, I appreciate your engagement, it is a pleasure to find somebody with whom one can have a sensbile conversation about accounts. We are rather a rarity on these forums.
I have to be honest with you and confess that the $1 million figure I previously mentioned was a rounded estimate from the half-yearly accounts. I acknowledge your point that the current cash balance may have evolved since then, considering both expenditures incurred and revenues generated from Italian electricity sales. Although the exact revenue remains unknown, my expectation is that this revenue would likely surpass the figures reported in the recent half-yearly report, given the typically increased winter prices.
Regarding the €25 million bond, I am confident that no warrants will be issued in connection to it. It is crucial to distinguish between debt and equity instruments, as they belong to distinct markets and warrants are typically associated with equity positions and are not issued in formal bond market settings. It is certainly common that warrants would be issued to private lenders, but never in the bond markets, it is just not done Personally, I find warrants used by any company acceptable if issued at a reasonable price, as they generate revenue when exercised. However, I am certain that they will not be issued in this instance for the aforementioned reasons.
On the point about Zenith giving a formal refusal to issue more equity, I think that it is unlikely we would ever receive this in an annual or half yearly report as it would definiteively eliminate a potential fundraising avenue. However, it is notable that Zenith has only issued 300 million (30 million post-consolidation) shares since the 2022 annual report, suggesting that reliance on equity issuance is not currently prevalent. I would agree with you here though, I would not like to see existing shareholders diluted any further than they already have been.
On the matter of the Devonian acquisition, I believe the dates may not be as definitive as you have presented here. My understanding, based on the RNS, is that payment is contingent upon receiving formal regulatory approvals from the Republic of Kazakhstan and not by any set date; though please correct me if I am in error on this. Regardless, I would certainly hope that they plan to have the €25 million bond in hand sooner rather than later. It would be better for the company all round.
I concur with the need for clarity on Leopard's operational plans and support your call for a more detailed presentation, not only for Kazakhstan but for the entire company. I also agree that Andrea Cattaneo deserves some success alongside all of us long-suffering shareholders. However, I feel optimistic that this year holds significant promise for Zenith Energy. We have certainly endured our fair share of challenges and deserve a positive turn of events to even up the scales.
I feel compelled to second that Zengas: I've lived thru 100 or 200 LSE BB's over many years.. and tyb is indeed one of the least impressive posters I've ever come across on lse BB's.. but there are a few more here that are around his level too, alas... imho
Thanks for that feedback investverysmart.. and reaffirms my positivity in this matter..
PS; fine discussion trail from ajmalkhuram and zengas , there are a few top posters here in fairness and much appreciated to you two and those other few ! (and there are a few posters i'd love to see post better content of less here in 24 too.. but that's not going to happen, I get.... btw Little posting from me here in 24 I expect as I spend little time on any detail here as I've realised that it's very likely a rank bad bet from me that I just chalk up to experience....and also nice I not annoy people by half baked posting here too .. I still have some hope here though.. not least as litigation win(s) could still be a massive thing here.. mongrels can have their day.. eg I held Rose petroleum into near total capitulation.. and when it became Zephyr I added and multi bagged - I sold down big before it fell hard in 23 .. but kept a bit in as still have hope for it in 24 - and one in every four of these dog bets coming good can more than make up for the others being car crashes.. etc.. )
TYB as the bb clown, can i respectfully ask you, if you have nothing sensible or factual to say please STFU with your absolute nonsensensical, childish and ridiculous accusations. You have not one clue as to what is going on full stop !
Give it a rest or go reflect on your buys all the way down - which i did point out re your BS average price and holding size back on 26/10/23 .
Thank you Ajmalkhuram for a detailed reply.
How sure are you it's $1m in the bank when it was under $900k 3 months ago and the debt service/ongoing costs since then ? They say the principal way is to issue equity but if a bond at $25m is successful yes i agree it will be a bridge and their track record is good on that - if it could only mirror their success with assets.
With the new $25m bond, will they issue any wnts in regard to that. It is strange that no warrants have been excercised in the past when they most definitelty can be at 1-2C but no bad thing - though i find it hanging over the company and as a potential investor something to bear in mind as to how much future dilution could take place so i'd like to see the terms of the bond and if we still end up with as many warrants post $25m bond ? and if, the price - we don't know.
Under $900k end Sept with cash burn/juggling since. What's left now ?
Clearly stated the principal way is to issue more equity - i'd like it to be a firm NO.
Needs $1.8m to complete on Devonian around mid - 3rd week Feb.
Yes a $25m bond will be helpful, but it's like revolving on a new credit card paying off a 2nd one imo particularly when there is limited income to cover the expenditure.
I accept they have a lot of potential cash to win but how long can they keep running like this until they actually get a win and eventual pay out ?
Why the need to get involved at RBD (10/1/24 vote) as a director and possible CEO ? (I have my own thoughts that i won't say publically). Is this not sidetracking and not keeping an eye fully on the Zenith ball ? He did say in an interview on a previous asset that they should have been more hands on when it came to it.
What's Leopards function and how will they raise cash for assets versus Zenith as the owner and how will that affect the Zenith equity in assets ?
Lastly the share price has matched all this uncertainty regardless of the potential for future wins all the way now to 2.85p (.285p pre consolidation).
He needs to convince people and put out a much more detailed presentation.
I don't know but If you're in any way involved in PR or know anyone at the Co it's needs telling to them and that some of the things done under a standard list imo would not have been gotten away with under AIM imo.
AC fully deserves some success but as a reminder he needs to deliver for shareholders as well and that they have voices and opinions too as well as where they choose to put their hard earned.
Zengas I have read through the Zenith half-yearly account and am very happy with what I can see there. The Italian assets continue to generate a reasonable revenue even with the gas prices nowhere near as high as they were last year.
Despite the company having only $1 million in cash in the bank,, it is important to note that Zenith Energy is solvent and well positioned to fund its Kazakhstan assets through a €25 million debt program.
While the cash balance may seem low, it is essential to consider the company's overall financial health. Zenith Energy has a strong asset base, which includes revenue generating assets in Italy and an incredible deal in place for enormously valuable oil and gas reserves in Kazakhstan. It is well positioned to fund its Kazakhstan assets through a €25 million debt program. This clearly plays a crucial role in Zenith’s ability to fund its operations and further develop its assets and provides the necessary financial resources to support the company's growth strategy.
It is also important to highlight that Zenith Energy has a solid track record of successfully executing its debt programs in the past. This demonstrates the company's ability to manage its financial obligations effectively. Additionally, and even more importantly, it show that Zenith has established strong relationships with financial institutions, which further supports its ability to secure funding for its operations, both now and in the future.
The Zenith management team have a proven track record of making excellent acquisition decisions that have delivered valuable assets to the company for very little up-front cost. The Tunisian acquisitions made the company a huge amount of money before the Tunisian government broke the contract and they look like they may deliver hundreds of millions more in compensation from the various arbitrations that are in progress.
Once the company commence the debt program then the Kazakhstan and US acquisitions can be funded with no dilution to shareholders so it is evident that the business plan in place is sensibly financed and more than enough to deliver the ambitious company objectives. If they are successful with the Kazakhstan drilling operations then this is likely to be a transformative year for the company.
Huge volume on the Norwegian market
Looks like lots of buying on the Norway market for new years
Nicetomichu African tactics cannot be played in regards to the litigation as money as been seized in the Swiss banks...................if we win they will have to pay simple as that...........whilst the ICC is taking no prisoners with them and has issues fine after fine if they do not play ball.............imo
Panman there is a group of these trolls who were heavily invested in zenith when they were doing the Azerbaijan drill. Way before I was invested and from what I gather they were meeting the directors at conferences etc and that gave them some delusional self importance thinking they were important figures. When the Azerbaijan play didn’t work out and they lost their profits they vowed to turn on AC and post continuous nonsense including attacking genuine investor who believe In the company. Unfortunately zengas is one of those people. So I take whatever he has with a pinch of salt.
Good answewrs coming on advfn re ZENGAS and his warrants.. Doesn't look like there's as much to worry about as he makes out.
Is ZENGAS a troll on ZEN?
bad gateway
1 Jan '24 - 21:47 - 8057 of 8057 Edit
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Odd ZEN. You're using warrants to knock the co. claiming you've researched well and don't know the amount and timings of those already expired.
ZEN had 529,395,330 warrants to be issued April 1st 2022.
By 30th Sept 2023 298,033,092 had expired unexercised leaving the 274,839,785 that you picked up on from ambulance chasing your way through the results.
Another 55,176,667 expired early Dec leaving 219,663,118 to be issued.
There's 92,094,691 expiring 17th Mar 24 which given ZEN hasn't had any of its warrants exercised since April '22 will likely expire unexercised too leaving 127,568,427 in play.
These 127M have a very low exercise price but would only expect them to be exercised should ZEN successfully purchase at least the first 50 percent of Devonian, get the drill in place and have a very positive result proving up a large part of the promised resources for this megafield they're claiming to have.
Presuming that their both winning and being paid out for some of the court cases they're involved in will also garner interest as I believe the no's were fairly high but unsure on amounts and timings there so will leave that for another day's discussion.
Can't see the market buying the story en masse (or zen shares) til either of those scenario's plays out so barring what admittedly is potentially very good news think they'll continue to expire unexercised here.
P.S seems to be no indication they issue warrants in Jan historically not sure where you've picked that concern up from?
Wishing you all a fantastic year to come and hoping for Cattaneo to deliver for us shareholders in the coming year with production from Kazakhstan USA and Italy...............the $150m wouldn't go amiss either..........ive started the new year filtering some of the usual village idiots as their hatred for the company....investors and more so themselves has become tiresome and quite repetitive.................GLA for the future ahead
Move on to where ?
Sure there's money to be made especially when you don't buy in and top up too early just like some do with no regard for understanding the company and having any post removed that is not full of praise and positivity. Criticise all you like, but the accounts are not there to be ignored. The stock market isn't for those who keep their eyes shut, their ears covered and heads buried in the sand. Understand your stock, management etc etc.
Look at the diatrade directed against those warning in COPL this past past year or so from 30p down to an £0.0015 placing after close on friday. It wasn't people who warned off the pitfalls that caused the crash there. The company did it all by iteslf so i'm watching to see what potential effect the warrants and other operational things could cause here on the share price drag or future dilution because it makes the stock otherwise expensive.
My concern was the management repeating themselves now on their 3d consolidation after the 2nd one lost 95% of its share price and diluted 23-24 fold in the process.
What do we see, little cash, cash requirements and already pointed out by management - potential for 686.7m shares. It looked a disastourus move on shareholders to keep the warrants in the game whereas if there was no consolidation voted through it wouldn't be a factor to worry about now all for so little money involved.
Is a genuine/ real hope for me here.. I say this towards starting the NY with something positive here.. (I understand there are a mountain of issues with zen.l too, granted )
Generally, what happened to this company in Tunisia will be shown to be illegal/grossly abusive of power imho.. I know from here and from save.l in chad and others too that trying to do business in many African countries is becoming more and more of a sick joke.. Against such a backdrop I see AC or other non indigenous Co's CEO having a depressingly small chance of success.... And I commend AC for suing hard and looking to build this business out away from the African Continent...
Just when you think your hangover could not get any worse ,then a diatribe from the one with the big chip who cannot move on appears. Happy new year to all true investors
Happy new year all zenith investors
Here’s to 30p this year
Callit
The warrants were issued from Dec 2021 to Feb 2023 at 0.1C - 0.2c (unless they were repriced from 10X but that would have meant there was over 4.5b warrants outsanding previously). They do not appear to be repriced at all or it would be found in the accounts. Strange one as it's only the shares that were consolidated and then on page 48 they back this up by saying what the potential number of new shares could be once excercised and consolidation has already happened. It's there in black and white unfortunately. The warrants would be in the money as low as .6p and up to 1.2p compared to 2.85p now.
Maybe this explains the share price weakness. This as my point all along about dilution and consolidation but was shouted down and posts removed. It mightn't have happenened imo without AC pushing through the share consolidation when the shares were priced at .285p. Instead anyone that points out anything is met with a barrage of abuse because they won't dig or delve into the finer points.
I doubt if this may have happened on AIM because at least there would have been a nomad. This is what happens when things go unchallenged. Imo if consolidation had been opposed/not taken place then these warrants could not go through running the risk of there being 687m shares in issue with little money recieved by comparrison.
One positive is they are negotiating another $25m bond which i'm sure will help pay off previous bonds and the debt pile.
Page 42
"As of September 30, 2023, the Group had 274,839,785 (2022 - 469,395,330) warrants outstanding relating to 274,839,785 shares and exercisable at a weighted average exercise price of CAD$0.02 per share with a weighted average life remaining of 0.67 years."
and page 48 (20)
"Basic average shares in issue 231m
Potential dilutive effect on shares issuable under warrants 455m.
Potential diluted weighted average number of shares 686.7m."
That's the facts as presented in the accounts whether anyone wants to bury their heads in the sand or not.
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Make a resolution not to whine in '24
@tyb so we could wait for a decision by summer and it could take longer to receive that money. Alternatively if we had been producing the oil the income would have been steadily flowing in putting off any need for a raise. Do you understand my point. It is looking like we have to raise unless Zen do share buy backs in the distant future.