Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Looks like a small holding raising to get the company through to when they issue the €25 million worth of bonds. More shares to issue but the small amount issued are a good sign for investors that the company expect to get the bonds over the line too. Also happy to see the Italian stallion put in around £200k of his own money too which shows his commitment to the company’s future. The market agrees with the last statement of the RNS that there are significant opportunities for shareholder value creation during 2024 as the price is rising now.
I hope we get back to my entry price and I can sell between 50 to 75 % of my holdings.
More dilution post consolidation which I expected and was clearly sign posted and today for around £1m net. Not even clear exactly how the cash will be split but I expect they were running on air as I posted awhile back given working capital needs.
Still paying the bills by issuing shares. £84k in 2.6m shares or 1% dilution. Shareholders powerless to reign this in.
I'm more upbeat here after reading that RNS..
In truth, my overarching interest here now is in those arbitrationS outcomes....and I have high hope for at least very meaningful positive outcome/s.. and maybe/hopefully enormously positive outcomes, even
Very interesting and actually positive update as we can clearly see the funds will be used for the US acquisition and developments in Italy..........also interesting to note that they are not using this to fund the Kazakhstan acquisition that is confirmed to be funded via debt as some posters here already suspected............GLA
ZENITH ENERGY LTD.
("Zenith" or the "Company")
Completion of financing with institutional support
Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; OSE: ZENA; OTCQB: ZENAF), the listed international energy production and development company with a focus on opportunities in Central Asia and the USA, is pleased to announce that it has completed private placement in the United Kingdom (the "UK Financing"), and in Norway (the "Norwegian Financing", collectively, the "Financings").
The Financings have attracted the participation of existing institutional investors, including Premier Miton Investors, as well two Directors, Mr. Andrea Cattaneo and Mr. Luca Benedetto, respectively the Chief Executive Officer and Chief Financial Officer of the Company, to raise an aggregate total amount of approximately £1,260,000 (equivalent to approx. 16,814,000 NOK and US$1,590,000), resulting in the issuance of a total of 37,856,250 new common shares.
Issue Price
The Financings were completed at price of £0.03 (3 pence) for the UK Financing and NOK 0.42 for the Norwegian Financing, representing a premium in respect of the closing price of the Company's equity securities on both the London Stock Exchange and Euronext Growth Oslo on February 12, 2024.
Use of Proceeds
The proceeds of the Financings will be used to fund the Company's publicly announced acquisition campaign in the US, to provide additional funding for Zenith's existing production and development portfolio in Italy, as well as for general working capital purposes.
Norwegian Financing
Zenith has issued a total of 29,556,250 common shares of no-par value in the capital of the Company in connection with the Norwegian Financing (the "Norwegian Financing Common Shares") to raise gross proceeds of 12,373,600 NOK (approximately £927,000).
An application for the Norwegian Financing Common Shares to be listed on the standard segment of the FCA Official List and to be admitted for trading on the London Stock Exchange Main Market for listed securities (the "Norwegian Financing Admission") will be made within 12 months of the issue of the Norwegian Financing Common Shares.
UK Financing
Zenith has issued a total of 8,300,000 common shares of no-par value in the capital of the Company in connection with the UK Financing (the "UK Financing Common Shares") to raise gross proceeds of £249,000 (approximately 3,324,000 NOK).
An application for the UK Financing Common Shares to be listed on the standard segment of the FCA Official List and to be admitted for trading on the London Stock Exchange Main Market for listed securities (the "UK Financing Admission") will be made.
It is expected that the UK Financing Admission will become effective and that unconditional dealings in the UK Financing Common Shares will commence on or around 8.00 a.m. (BST) on approximately February 22, 2024.
Debt Settlement
The Company has allotted 2,658,914 Common Shares ("Debt Settlement
Agreed actually very good news and I think we have now seen the bottom.
Onwards and upwards finally.
Whilst dilution is never great, funding was required and to have raised at a slight premium todays price with no warrants is attached in the current environment can be taken as a positive.
Https://www.azernews.az/oil_and_gas/221731.
In January 2024, the export of Kazakh oil from Aktau port amounted to 287,000 tons, which is 76,000 tons or 36% more than the corresponding indicator of 2023, Azernews reports, citing Kaztransoil.
Mls actually same price last couple weeks. Sure once we get the Kazakhstan news the price will rectify itself.
Its raining outside today ,probably Zens fault.
Slipped quite a bit last couple weeks
Https://timesca.com/kazakhstan-to-increase-oil-shipping-along-trans-caspian-route/
Ajmalkhuram. I owe you and others an apology here. I have no idea why but for some reason I never read the rns relating to the acquisition in full. I must have read the first couple of paragraphs which are somewhat confusing and never got past the reference to a deep well of 6000mtres plus and never scrolled down to the end- which makes my last post on here somewhat irrelevant. ATB
Do we know if the drill has arrived, hopefully we get some pics on twitter of proceedings
Ezhik, I appreciate the insightful points you've raised in your last post. However, I would like to express some minor differences of opinion regarding certain aspects of your comments.
Upon careful examination of the RNS concerning the acquisition, it is evident that the existing licenses extend until July 2025, precisely 18 months from the present date. However, I believe the drilling of the well within the current year, as you suggest, is a prudent approach.
The RNS explicitly outlines that drilling a well and reprocessing seismic data are the last two criteria mandated by the Kazakhstani government for the license transition from a six-year exploration license to a 25-year production license. It appears that successfully completing this well fulfills the remaining requirement, positioning the company to secure the 25-year license.
Contrary to your observation about drilling a deep well, I find no indication in the RNS that suggests Zenith would be drilling such a well. While the document mentions a deep well, AK-1P, drilled in Soviet times down to 6,290m, the document also makes clear that this was intended to drill to 7,000m but encountered difficulties with high gas pressure. I cannot see any circumstance whereby the company would drill to this depth for the first well.
To me, the RNS clearly suggests that the next well will be an appraisal well, signaling a transition from exploration as the license development advances toward a production permit. This leaves the choice between the AK-20 well, which recovered oil at 2,660m and gas at 1,913m, and the KM-1 well, encountering 30m of oil-bearing sands between 1,680 to 1,720. My inclination is toward the KM-1 well, given the additional details provided in the RNS and the known oil deposits. However, I defer to your expertise in the oil-field domain for correction or guidance on my assumptions.
Considering the relatively shallow depth of a well drilled to approximately 1,700m, as indicated in the RNS, and drawing on the example of the BD-260 rig's successful drilling to a total depth of 4,350 meters in the C37 drill in Azerbaijan, the rig demonstrates the capability to drill more than twice the required depth for the KM-1 well in Kazakhstan.
In my opinion, Zenith appears to possess the necessary equipment capable of drilling the anticipated shallow well, and finding a competent team to operate it should be feasible. The primary remaining question, as you rightly pointed out, is the duration required to recondition the BD-260 rig for drilling readiness. While I tentatively estimate 2-3 months as sufficient, I defer to your superior knowledge in this domain. However, I am strongly inclined to believe that the well will be drilled within the current year, hopefully early H2,, and I find no compelling reason to incur additional expenses on an external rig for this purpose.
@Ajmalkhuram. I prepared a fairly comprehensive reply to you yesterday and then just before posting it, my internet connection failed and the message was lost--very annoying.
I won't try and replicate it entirely but if the proposed acquisition comes to a conclusion, the way the rns reads is that the license area is a deep structure, the conditions of the production licence which follows the current exploration is dependant upon a new well to be drilled and the current licence has about 12m before expiry. Which, if I'm reading it correctly means that if Zen obtain it, they have a year to drill a deep well. Currently Zen have no 'oil-men', no crew(s) and the rig will need recommissioning, and testing. They could obtain folk and try to build the necessary crews but they would likely be individual contractors as opposed to a cohesive and experienced crew. Deep wells are not for the feint hearted and often experience high pressures and sometimes high temperatures which a cobbled together inexperienced drill crew may well struggle to manage. If they contract out the whole thing to a drilling contractor, the crews are more likely to be familiar with each other and there is more likely to be a culture of good safety and quality amongst them..not forgetting that the drilling contractor takes responsibility for a successful drill---as opposed to Zenith directly, i.e. someone else to sue for damages. Once they get this first drill out of the way then by all means start putting together their own teams to carry out development wells using the knowledge gained on the first well. I'm not a 'finance' or 'international tax savvy chappie' so there may be financial advantages to use their own people, but from a pragmatic and expedient perspective with the time limitations from the license conditions I would contract it out. Anyhow--in reality it's none of my business tbh, just voicing an opinion.
If I get my 50p I’ll put up an Italian stallion statue in the middle of my driveway. Not unrealistic if we get our arbitration payout with good production from Kazakhstan and USA.
One day tyb you will get your tasty Italian fayre accompanied by a bottle of Chateau Cattaneo from his personal vineyard---it's the least he can do in return for your support. maybe even 2 bottles.
Re the bond exchange - Though it says 'up to' re all 3 bonds, I think it's about $10.2m outstanding looking at the recent account notes.
If exchanged then this will add a further $500k/yr interest on top of what they are already paying.
They said they were working on a $25m bond ? what interest rate price will that be with those 3 just under 15% ?
Will they use part of the $25m bond if successfully issued to repay other bonds in the portfolio ?
It's strange but imo not surprising they completely ended the three seperate US transactions which i said at the time was extreme folly and nonsensical re diversification over a wider US area and so small.
The 5% royalty interest is another folly and just what is the point of Leopard rather than Zenith ? It's so small and insignificant they can't even say what it's worth or cost or how much actual monthly revenue they'd get. The number of wells in total versus actual producers and the Texas Oil and Gas activity data for Lavaca County imho shows why.
Ezhik a tasty spaghetti dinner will be finally served by zenith in 2024 and we have been waiting very patiently.
@deano. There are some tasty dishes that come out of a slow cooker-- the proof will be in the pudding though.
I have just has a read through the RNS's and it is cuisine in a slow cooker, we will know better come Sept / Oct.
In the mean time we can wonder if Florida is still doing his 50p coin trick or if MGSlingerie is going to write us some more fantastic oil porn, you can really get off on that script!
20th feb is the deadline if I remember right? Once Kazakhstan is ours the fireworks shall begin.
Things don'e always go smoothly if you do contract the drilling out. AAOG a case in point.