PYX Resources: Achieving volume and diversification milestones. Watch the video here.
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I wonder what will happen to the share price when Tilapia comes in and a P2 value of $1,28 a share, kicks in?
Agreed Callit. CEO is pushing all the right button even during the pandemic for the same!
I would like to see the workover programme commence in Tunisia so we can really push on. The upside from a successful well could be amazing! Then we have to push on with Tilapia also.
So what are we looking at about 1 months worth of the extra production oil pays for the whole $200k sale price. Fantastic!
Andrea must surely be the best deal maker in the business.
MG just read your figures, that’s a lot of money coming into the company. Market needs to wake up before the money gets into the accounts. Very happy with AC today.
wow lovely news this morning...........MG great summary........have been topping up while its quiet for the next leg up soon.........great work by Zenith
Key elements of today’s RNS
1) An additional 125 barrels of oil coming into the company each day – gross value $7,500 per day or $2.3 million per year with a guess that the net value will probably be approximately half of this.
2) This takes the current production in Tunisia to be: 245 bopd(SLK), 203 bopd(Ezzaouis) 125bopd (new license) – total current production 573 bopd. The value of this (at $60 oil) is $12,548,700 gross per year and therefore approximately $6 million (£4.5 profit)
3) The announcement also states significant development potential in the new acquisition. One well used to produce up to 600bopd and could do again after remedial work and another has the potential to deliver an additional 175bopd after drilling activities.
4) AC has explicitly said that he expects our production to almost double from 573bop to 1,000bopd just from the development program that he plans to carry out at these existing acquisitions. This would mean a gross revenue of $22 million per annum and therefore a net of about $11 million – which would make the company not only self-financing but also profitable.
5) If they think that they can generate an additional 775bopd just from remedial work at the new license and there will also be an improvement after the works at Ezzaouia then (assuming all goes well) then we may find that the figure of 1,000bopd for production is actually rather conservative.
This is a very exciting RNS. What I particularly like about it is that we are now not just buying assets that have existing production but we are buying assets that have significant development potential too. The company is building a really solid income stream quietly in the background and when the Tilapia license is approved then the market will catch up with this and we will all be in line for a massive re-rate as a company that can pay it’s own way while still having huge exploration upside.
Activity on the Norwegian exchange should be interesting
As usual AZ delivers an interesting addition to the portfolio and at the bargain price. There will be investment required to get these going, but once done, these will pay for themselves no issue. Good to see the business is growing in line with the planned strategy.
“ We expect to shortly achieve a daily production in excess of approximately 1,000 barrels of oil per day by way of our recently announced acquisitions “
Shortly a lot of money added to the market cap
Yes wonderful achievement foe the same!! Very happy with this.
The futher potential to increase production from these wells is in itself enough!! Already daily producing so money in the bank. Rock on Mr AC!
Agreed Canary should reflect in the share price soon enough. I’m surprised AC Managed to pull such a great deal especially during Ramadan in Tunisia. The share price will have no choice but to rise as you cannot deny when oil and money coming in. Very happy today.
Another 125 barrels of oil a day net to Zenith with the potential for another 500-600 bopd after a workover and all for $200,000. I would say that this is better than good news. I would say that it is another spectacular deal by AC.
https://www.investegate.co.uk/zenith-energy-ltd--zen-/rns/offer-to-acquire-oil-production-assets-in-tunisia/202104210700040988W/
Ac has done it again, and looks like he has more deals on the way.
Andrea Cattaneo, Chief Executive Officer of Zenith, commented:
"We are very pleased to continue further enriching our portfolio of oil and gas production and development assets in Tunisia, especially with these Potential Acquisitions which contain significant untapped potential and opportunity for value creation.
We expect to shortly achieve a daily production in excess of approximately 1,000 barrels of oil per day by way of our recently announced acquisitions, as well as the near-term development activities we intend to perform in these assets, which would very favourably position the Company in terms of profitability in the current oil price environment.
I look forward to sharing further information on the Potential Acquisitions once they are completed."