George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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Kazakhstan’s decision to concentrate attention and resources on domestic oil and gas capacity fits within a larger pattern, as the fall-out from Russia’s invasion of Ukraine in February 2022 has led to a rethink of energy policy in Astana.
Export plans
Most oil exports today travel via the CPC pipeline through Russia, or Russia’s national pipeline system, Transneft, to Novorossiysk and on to the Black Sea. This route however has suffered a number of weather-related outages and, more recently, Ukrainian attacks on Russian warships, tankers and refineries.
In response, Kazakhstan launched a new export grade to distinguish its crude from sanctioned Russian oil, and has begun buying tankers to shuttle exports across the Caspian Sea to the Baku-Tbilisi-Ceyhan (BTC) pipeline.
Exports to China could rise from just 1 million tonnes this year (about 20,000 bpd) to 130,000 bpd. Along with the expansion of Shymkent, that would be enough to handle most of the increased output by 2027.
These initiatives make Kazakhstan one of relatively few countries in the world able to attract strong investment interest both from international oil companies and local players.
To maintain that attractiveness, improving environmental performance is imperative, and the government has worked with industry to make the necessary adjustments. Levels of gas flaring have dropped sharply from 3.8 billion cubic metres in 2014 to 1 bcm last year.
At the just-concluded COP28 climate conference in Dubai, KMG was one of 30 national oil companies to sign up to the Oil and Gas Decarbonisation Charter (OGDC), which commits them to reach net-zero operational emissions by 2050, and eliminate routine flaring and nearly all methane emissions by 2030.
Two Kazakh companies, KMG and the aforementioned Kazpetrol, have endorsed the World Bank’s initiative for zero routine flaring by 2030. Kazpetrol already uses 97-98% of its associated gas, according to technical director Talgat Abibullaev.
As the country prepares to undergo a historic expansion, aligning technology, investment and environmental principles will further boost its profile on a global scale and within the OPEC+ alliance – helpful as a reshuffling of quotas looms.
Kazakhstan, the second-largest active member of the Opec+ group after Russia, has just announced an ambitious five-year expansion plan for its petroleum sector.
The Central Asian nation’s strategy has the potential to raise its prominence in the exporters’ group and strengthen its domestic energy security, all while challenging other producers to meet new standards of excellence.
To succeed, key players within the industry, including both oil majors and mid-sized regional companies, must bolster investment in advanced technologies, with a determined focus on maximising existing resources and mitigating environmental impacts.
Kazakhstan sits at the nexus of global oil and gas pipelines, including tanker routes that unite the region – north and west through Russia, across the Caspian Sea to Europe, and east to China. On balance, it has an unusually diverse petroleum sector, which features a large state-owned oil company, KazMunayGas (KMG). There are also numerous smaller private Kazakh companies such as Kazpetrol Group, an innovative enterprise owned by Yerkin Tatishev. Foreign international corporations are also well represented, notably Shell, Eni, Chevron, ExxonMobil, CNPC, Lukoil and others.
The new strategy, unveiled on December 6, aims to further transform the country’s position in the energy landscape, and calls for $37.3 billion in spending to cover 20 major projects in oil and gas production, refining and petrochemicals.
Under the plan, the three leading fields, Kashagan, Tengiz and Karachaganak, operated by international consortia featuring KMG and others, will be expanded. This is expected to take national production from 1.769 million bpd in 2022 and a projected 1.85mn bpd this year to 105.5 million tonnes in 2027 (about 2.11mn bpd).
Refinery capacity is also expected to increase by about a quarter, or 120,000 bpd, with the enlargement of the Shymkent facility. Moreover, the important Kenkiyak-Atyrau and Kenkiyak-Kumkol oil pipelines will be expanded, helping to supply oil from western Kazakhstan to domestic refineries and via pipeline to China.
However, without new discoveries, Kazakh production is projected to peak around 2030. Therefore, the strategy places significant emphasis on new developments and exploration. Most notably, the Lukoil-operated Kalamkas More and Khazar fields in the Caspian Sea will be further developed.
Exploration will be intensified, including in deep subsalt formations in the Caspian and South Turgai basins. Added to that, the latest auctions for new fields in October and December 2023 attracted strong interest from local players. Within this, the increasing maturity of older Soviet-era fields, such as the Mangistau and Kyzylorda regions, demand improved recovery rates and reduced operating costs, which can be best achieved through the efforts of focused, smaller companies.
Responding to the previous poster however the post got deleted. either way shall still post the reply intended
A comparison between Azerbaijan and Kazakhstan is not warranted unless one harbors a bias related to events that transpired almost a decade ago. The challenges encountered in Azerbaijan stemmed from inaccuracies in Soviet-era well data. It became evident only during drilling that the provided information was significantly flawed. In such circumstances, success was unattainable, irrespective of the entity conducting the drilling. Notably, there were no issues with the rig itself in Azerbaijan; it successfully drilled all wells, but the erroneous data impeded oil flow.
Conversely, the situation in Kazakhstan is more promising. Updated 3D seismic data, acquired within the past decade, covers 70% of the license area. This stands in stark contrast to the reliance on 50-year-old data in Azerbaijan. Additionally, a comprehensive Petroleum Resource Assessment (CPR) indicates P50 resources totaling 120 million barrels of oil. Armed with a proven rig and benefiting from the region's historical success in producing significant oil fields, Zenith is presented with a substantial opportunity. The apparent support from the Kazakhstani government further reinforces the prospect of success.
Rugs good luck to you either way have lot of respect for investors who keep it transparent and no games. Personally agree with deano the action is just about to begin. Less than a month before Kazakhstan is in our hands.
'rugs. There is nothing to stop you buying back in once there is a sustainable upwards trend in price and volume.
Seems a strange time to sell out when the cuisine is about to be heated up.
· A second tranche in the amount of US$1.8 million will be payable on the completion of a satisfactory legal and technical due diligence by Zenith 60 days from the date of signing the Conditional Acquisition (the "Exclusivity"), and the receipt of all necessary regulatory approvals in the Republic of Kazakhstan ("Completion").
I believe 60 days from December 20th we have 60 days to finalise the Kaz deal.........imo that's when the market will enter this stock with very large volume...........dyor
No worries rugs at least you’re transparent about it. Personally think this year is the year the price will finally break 1.5p (15p now with consolidation) especially if we sign the Kazakhstan deal in the coming weeks. Moves are already being made in the USA with cyap and the big payout won’t be far off from the arbitration. Has tested lots of patience here but this will come good when everyone least expects it as that’s how usually it plays out.
Tyb. Let me clarify. Price going up to 5 i.e. doubling not 5 times the present level.....
Https://astanatimes.com/2024/01/president-tokayevs-first-visit-to-italy-reflects-kazakhstans-multi-vector-foreign-policy-broader-engagement-with-eu/
Maybe ac can do some more business with them now that ties are strengthening between the Italians and the Kazakhs.
You think it could go up 5 fold and not 7, so you sold? Lol
Have sold out this morning. First bought in 2017 and another half dozen times since. Always seemed so much promise but.....
Share price would need multiply 7fold for me to even break even and although I can see it possible going upto say 5 I don't see it getting to 20p. Big loss, for me, but good luck to all those continuing to hold.
'Step in the right direction for sure.'
Yes two steps forward and 1 3/4 step back and left staring in the direction we wish to go.
We really need to get the USA venture off the ground for revenue streams and stability.
Wrong zenith...........imo
Paul1deano from what I remember from the interview ac wanted to acquire many oil producing assets in the area, not just one area and one asset. Step in the right direction for sure.
Bandyabout I am pretty certain they have mixed up the wrong zenith energy.
Hang on a different Zenith to us,
https://zenithenergy.nl/
Wasn’t the Dutch subsidiary set up for Yemen or was it something different?
I never knew we had anything on the Emerald Isle?
Sunoco LP (NYSE:SUN) is buying the oil terminal on Whiddy Island, Bantry Bay, Co Cork, from its owner, Canada-based, London- and Oslo-listed Zenith Energy Ltd. (LSE:ZEN). Whiddy Island is Ireland s biggest liquid fuels terminal and one of several in the Republic used by the State's National Oil Reserves Agency, which did not comment on the deal.
News of the sale is likely to spark reaction locally as the business employs more than 30 workers and Zenith had widely flagged plans to invest in green hydrogen and ammonia production at the site, alongside Cork company EI-H2. Seán Kelly, Ireland South MEP, just days ago queried whether progress had been made on the project, originally announced in 2021. The Whiddy operation is a subsidiary of Zenith Energy Netherlands B.V., the entity that Sunoco is buying, which also owns oil terminals in Amsterdam, one of Europe s biggest ports. Neither party revealed the price pending completion of the deal.
I can’t be bothered to look back at the rns’s but were’nt we invoked with bigger plays out there, what has happened to them?
I like the sound of this deal, though given that there are no figures mentioned I don't expect it to be very big. A first foray into the USA with hopefully more of the same to follow.
GLA DYOR
Was in transit and missed this rns thanks................we need more details about the oil produced etc..........either way step in the right direction with the USA...........Kazakhstan news should not be far off either.............dyor
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Update on United States portfolio
Zenith Energy Ltd. (LSE: ZEN; OSE: ZENA; OTCQB: ZENAF), the listed international energy production and development company with a focus on opportunities in Central Asia and the US, is pleased to provide an update regarding the development of Cyber Apps World Inc. ("CYAP"), a U.S. listed company of which Zenith acquired majority control by way of a Securities Purchase Agreement in August 2023, and the Company's previously announced business development activities in the US.
First Acquisition in the US onshore oil and gas space completed by CYAP
On January 16, 2024, CYAP announced that its subsidiary, CYAP Oil, LLC, had successfully bid at auction for a 5% royalty interest in a package of seven (7) producing wells located in the Eagle Ford Shale, Lavaca County, Texas.
This represents CYAP's first transaction in the US energy production and development sector and is, in line with Zenith's strategy for CYAP, a shift away from software development towards identifying and acquiring opportunities in the US energy and production development sector.
CYAP has confirmed that further acquisitions of this kind, specifically royalties in non-operated oil and gas production leases, are planned.
Change of name to Leopard Energy, Inc.
In view of the change in strategic direction away from software development, CYAP has elected to change its name to Leopard Energy, Inc.
It is expected that the name change will become effective once all the necessary regulatory formalities are completed.
Update on US acquisitions announced by Zenith during 2023
The Company confirms that, following the acquisition of CYAP in August 2023, it has discontinued and terminated the three separate transactions announced to the market on June 2, 2023, July 5, 2023, and August 3, 2023, respectively.
Andrea Cattaneo, Chief Executive Officer, commented:
"We are pleased that CYAP has now completed its first acquisition in the US oil and gas space. The acquisition of a non-operated oil and gas production royalty delivers immediate monthly cashflow and will enable an attractive payback of the initial investment.
It our intention that CYAP's first acquisition be followed by various other similar acquisitions in an incremental manner, following geological, financial, and legal due diligence, to achieve 'critical mass' and build a balanced, revenue generating and profitable portfolio.
We believe CYAP will attract financial support from US capital markets as the benefits of implementing an accretive growth strategy centred on purchasing interests in non-operated oil and gas production leases, during a period of favourable energy prices, becomes increasingly apparent."
Another 3 acquisitions, not happened as they have no money. 5% of 7 producing wells.
What about the minor point of any detail. How much spent, what is the net to Zenith. Absolute shocking poor RNS.
Some buys coming in