Member Info for Adon30

“ Once the MOU-4 drilling is complete, results from all the wells drilled in 2023 will be quickly assessed and compared and a comprehensive and expanded rigless testing programme will then commence during July."

And as GRH wrote previously

“ MOU-3 location is excellent 😇😇😇”

CNG, Morocco, main road access….

Think about it….

Nick, There is also a 26th image for the radar following on from the 25th one. I hadn't mentioned earlier as was hoping someone else would have DYOR :)

But that later one (26th) shows next to nothing at MOU-3 location and confirms the rig move.

Intra day RNS coming or do the logs need to be approved by ONYHM first.....

Big progress happening either way. Despite how quiet it is.

MOU-4 drilling programme (from 12 May RNS)

The Company intends to be "drill-ready" to commence MOU-4 well operations at the earliest opportunity following a review of the MOU-1 and MOU-3 drilling and testing results in order to be in a position to scale up potential CNG gas deliveries as the market expands through the de-risking "Proof of Concept".

Whilst there is an opportunity and before additional supply chain issues develop, the Company seeks to secure the remaining long-lead well inventory items for MOU-4. In addition it will commence the permitting for MOU-4 and begin the civil works at the MOU-4 well location.

The MOU-4 well is also being programmed to test the Jurassic, which will require some specific well inventory items that are not included in the Company's current well planning process.

The Jurassic target covers an area of 126 km²and is interpreted by the Company to evaluate an interval drilled by Phillips in 1979 in the TAF-1X well, approximately 25 kilometres to the southeast of the proposed MOU-4 well location, within which there were minor gas shows. MOU-4 will test the potential for improved reservoir development and hydrocarbon charge in what may be a more favourable geological setting.

Yes looks like something has appeared there. Strange as possible mou4 location much further away from mou2 than first suggested. But no point moving the rig twice and hasn’t appeared back at mou2 which would have been the closest point.

I’m more interested in why there is no rig reflection on the latest radar pass last night… clouds don’t usually obscure something that big, unless the pass was really awful.

Think it is a bit to far south according to presentations

Page 13 latest presentation

- MOU-4 2.5 km southeast of MOU-2

Always worth reading the small print ;)

SP seems to be rising by large amounts with hardly any trades showing. Is something going on in the background or MM games...?

I noticed that the workover rig looks like it has been moved from the N2 location in the last couple of days. Is that good news or bad? Surely results can't be far away now.

Https://twitter.com/ZephyrEnergyPlc/status/1670778182901854209?s=20

State 16 will be used to drill 16-3 and maybe try out other layers as development exploration. Once they have permits! The lack of pipeline permit also means lack of any further testing at that location at present.

Other locations are likely to be used to develop the main prize and will be chosen based on proximity to the existing pipelines.

Last updated image was on the weekend and we know from the update yesterday they are continuing preparation work anyway

I don't think the wheels have fallen off but agree it has slowed. However not entirely Zphrs fault. You could add any number of things as to why. The labour shortages due to Covid and people leaving the trade not being replaced or new people not trained is a world wide issue. People were laid off and took the money and found that other trades were better and have not gone back. Thus creating a big void. You certainly can't blame Zphr for that. Nor supply chain issues, rig availability and not to mention the permits! 6, 9 months or a year to get a permit is a joke and is really frustrating. Again a global issue not just zphrs problem.

However during that time Zphr have taken opportunities to progress forward. Moving from 75% to 100% ownership and buying up extra acreage and the gas facility are good moves. That would not have been possible without the funding being provided from the non ops.

The initial fundraise/ dilution was £12 million and a US$28 million debt facility.

Zphr announced results as: "The total expected revenues for FY 2022 of US$42.9 million (subject to audit)" and "Operating income for FY 2022 was US$35.7 million."

So a year only to make the same amount of money back and still ongoing for years to come.

Yes, as shareholders, we will not see that dilution reduced unless there is a buy back.... and the debt is not being paid in full in one year so there is still outstanding debt on the company but also a way to pay it.

As people have said they have sold produced oil from the WSU. But not gas. And certainly not continuously. We would all like to see that.

I think they will also sell the output from the latest 16-2 test at some point. Maybe combined with 36-2.

For the reason for the blowout please read the Turner Pope information. Much more thorough than I can write hear and explains the reasons and what happened in detail. There is probably a post around that time with the info attached.

Agree CH has been a lot quieter of late. Maybe he is also a bit frustrated with the slower progress. Things are happening though and I'm sure he'll pick up as soon as better news starts to flow.

Do not forget State 16 has an outstanding permit application for 16-3 well to be drilled which will target the C9.

This is due to the obvious that 36-2 hit the natural fracture and will be the more prolific well when on production.

No idea how long that permit will take though....

Dominion Info

https://www.dominionenergy.com/projects-and-facilities/natural-gas-projects/utah-rural-expansion/green-river

When will construction begin?

This project will be the third to be proposed under House Bill 422. If the Utah Public Service Commission grants approval of the project, construction would start in early to mid-2023, with an in-service date of late 2023. This project will include the construction of 14.5 miles of new natural gas pipeline and a distribution network. Preliminary routing is underway.

1. Do you think that an 'existing' gas processing facility, albeit currently decommissioned. Would have been built there in the first place with no export infrastructure? There is already a pipeline south to Moab. The NEW pipeline is to provide gas to Green River regardless whether it is produced in the Paradox or not.

So any gas that Zphr produces can go directly to Green River and if there is excess this will be exported south. Or if there is not enough it will be supplemented by the southern pipeline.

The problem for Zphr at present is:

a) they do not know who much gas they will be producing as State 36 testing not commenced and state 16 data still incomplete

b) they need to know the gas volumes so that they can spec the refurb on the gas processing facility

c) the pipeline permit for state 16 to connect it to the gathering pipelines is still outstanding 7 months later. Either a government department issue or ongoing discussions between parties to finalise approval.

2) A Q1 update was due so polite for shareholders to be updated on State 36. Would have preferred it to have said they will be testing this week or something similar. But if they still have remedial work to complete for safety reasons it is better to complete that first.

3) What LTH would not be disappointed with the drop in SP. As others have said though a lot of items have been out of their control. Rig commissioning, permitting, worst weather for years, valve failure resulting in a well control issue. Unfortunately not all of it has been under their control.

And yes the non-Ops should be of interest to the market and ii's as it is a fundamental of the company. Which would you prefer.. Making $2 (minimum) for every dollar invested? Or, constantly coming to the market for more equity raises and shareholder dilution?

The finance directors salary was 340k + share options. Compared to the non-exec directors which were paid 48k. I would suspect the financial controller wages would be a similar amount although haven't spotted an actual figure.

JA's salary in comparison was 478k plus share options.

Without either of them that would be a 820k saving and probably pay for a side track in Tunisia....

If someone is selling after buying low and making a profit then so be it (whoever it is). Selling at this price though the shares are still being bought into by others as the SP is still a good bargain.

It is not just the first gas that is now imminent in Italy. There are also further triggers in Spain and Italy that could easily propel this forward.

This was a Q1 financials report and they happened to provide an update on state of play at state 36. I'm not sure why they would need to report on what a different company is doing. Maybe you should contact Dominion or read there reports??

Besides, the Dominion pipeline is only a way of selling gas to Green River there are still other ways to sell the gas. Of course that still means the Gas facility needs refurbishment. And all investors want that update. Which will come once state 36 is tested and they have an idea of throughput.

This update proves yet again why Zphr is such a good investment at this time. The non-ops have all been selected to pay back in 2 years or less, and a lot have already paid back due to the higher commodity price. From the latest presentation "Each equity dollar invested has generated multiple dollars for future reinvestment". It is an excellent strategy even if it has not seen the sustained SP that many would like. However with 2 brokers having target prices of 17p & 20p (no idea who came up with 30p this morning!) entry for any new investors at this price will see good returns. Problem is people are always looking for short term gains. And that can be seen from the FUD traders that hit the boards this morning and called anyone invested an idiot for not understanding anything. It is amazing how low some of them will try and stoop for their own gains.

As a holder who would not want to see steady forward progress. However, it will come and Zphr is nicely set up to achieve that. Just need to ride the bumps on the way.

With the SNAM connection and transmission arrangements finalised, Po Valley Operations has initiated the process of recovering €757,000 performance bond funds (100% basis - €280,090 net to Prospex), previously deposited with SNAM

Construction and grid connection has been largely completed on schedule and budget, with only a 3% cost difference to budgeted expenditure. This amounts to ~€132,000 (100% basis), €48,840 net to Prospex. Given the global supply chain concerns the joint venture is delighted with this outcome.

Initial production of PM-1 gas is contingent on the signoff of the final operation and safety inspection. PVO anticipates that this will occur before the end of May 2023.