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anything above $1.5m a year from only Rob1 will be amazing................dyor
Good news that the ROB-1 workover was completed and several issues taken care of.
AC "We intend to report flow rates from ROB-1 shortly, once they have stabilised".
2-3 days for well swabbing and a few days to establish stable flows, so I would expect an update next week at the earliest.
This is a good RNS after several positive RNS releases from September, so all looking promising for the year ahead.
Mr 28344 wasn't with us for very long LOL
GL.
Go Zenith!!!!!!!!! Go Andrea!!!!!!!!!!
This share is going to be a multi-bagger and a total game changer for me and my family. How much do you think the share price will go up when the new production news comes out on Wednesday?
Hi dipped in 1.15-.25 lots of buys
Remember that:
If Rob-1 produced 50 bopd then it would be worth $1.1 million per annum net to Zenith
If Rob-1 produced 100 bopd then it would be worth $2.2 million per annum net to Zenith
If Rob-1 produced 150 bopd then it would be worth $3.3 million per annum net to Zenith
If Rob-1 produced 200bop then with would be worth $4.4 million per annum net to Zenith
huge rerate coming.......................we know its going to be multiples of what it was at it was only producing at 20% before............going to be a lot of money added to the kitty..........superb work will be adding on open before the price moves.........dyor
That RNS is fantastic news. It gives us a substantial amount more detail on what we can expect as production rates from the ROB-1 workover if we are lucky and mathematically this could be an increase in production far beyond anything that we were expecting.
1. Firstly, we know that the workover has been successful and nothing has gone wrong.
2. We know that ROB-1 had originally been producing 50bopd but a botched workover by the previous owners back in 2012 reduced this to 20bopd.
3. We know that the current workover has cleared out nine years worth of paraffin and wax that were blocking the lower well perforations have now been cleared out.
4. We know (and this is the key one) that the well pump was only functioning at 20% of capacity.
5. We know that there were missing elements to the well structure (the tubing hangar) that have now been replaced.
6. We know that in 2-3 days (presumably by Wednesday or Thursday) we will start to receive the new oil production data from ROB-1.
So,, looking at this information we categorically know that ROB-1 is going to flow more oil than it did before the workover simply because of the amount of gunk that has been cleared out and the fact that broken and missing equipment has been replaced to bring the well back up to full working capacity. The big question is: how much extra oil is going to be produced?
I think from having read the RNS that it is an absolute given that we will exceed production of 50bopd, but actually what I am now extremely hopeful about is that we may exceed 100bopd. If the old pump was only functioning at 20% of its capabilities and the well was still producing 20 bopd then it is no stretch to think that a new modern pump working at 100% of its capabilities will easily be able to produce five times as much oil and hit 100bopd.
When you add in the fact that all of the gunk has been cleared out of the well then it is entirely possible that we could be seeing flow rates in excess of 100bopd and we should know by Wednesday.
Andrea is really starting to deliver not just in deal-making but also in the logistics of oil production and Zenith is quietly beginning to generate significant cash flow from operations. When the market catches up with the real potential on this share I think that we have the opportunity to see a share price that is many multiples of the current level. There is so much news to come here in so many different places and only some of it has to come in for it to be completely company-changing.
Roll on Wednesday/Thursday for the first step in this journey.
So what are we looking at here?
100+ or more?
Seems to have gone exceptionally well!!!
GL.
https://www.investegate.co.uk/zenith-energy-ltd/zen/successful-workover-of-rob-1--onshore-tunisia/202110250700141088Q/?fe=1&utm_source=FE%20Investegate%20Alerts&utm_medium=Email&utm_content=Announcement%20Alert%20Mail&utm_campaign=Zenith+Energy+Ltd%20Alert
Andrea Cattaneo, Chief Executive Officer of Zenith, commented:
"We are very pleased with the successful outcome of the ROB-1 workover which has been our inaugural operational engagement in Tunisia. Our team successfully executed the workover and garnered significant insight into the potentially very material upside potential of the Robbana concession.
Third party geophysical analysis suggests that the Robbana concession has potentially only produced 5-10% of its reserves potential to date.
We intend to report flow rates from ROB-1 shortly, once they have stabilised, and we remain cautiously optimistic about the relatively sizeable production uplift we may be able to achieve from ROB-1 against a backdrop of a highly favourable oil price environment."