Member Info for Adon30

The well in the south that they are drilling with a partner. That area already produces but from vertical wells. They are looking at opening it up with horizontals. I’d expect some sort of infrastructure already in place in that area and they are also expecting mainly oil so less of a conundrum.
The state 16-2 overlying layer will sit with whatever infrastructure they decide on for that.
The only one I’m not sure on is how they’ll tie the other one in on the acreage.
It’ll all be resolved over the coming 6 months anyway.

It was interesting listening to CHs podcast the other day and was something I was thinking about previously. I wonder if the University and research organisation’s will get involved again with this next stage? That may be worth a question. They may even provide some funding (not that it’s needed this time).

Thebhoys yes I would like to think that new information is forthcoming but also to remind everyone to pin their expectations just in case. I’m hoping it’s the first but let’s wait and see what is in the presentation first before coming to any conclusion.

Pmanuel yes that is the sort of info I would like to know also. If you have already submitted them then hopefully CH can see them early and work on including answers in the presentation. This is what all investors want to know now and will be the catalyst for the next stage.

They may do. Most companies provide quarterly results and I thought that ZPHR were going that way. As it is fairly new they could provide a further update...
Either way. We know the cash is rolling in and they have enough hedged to service the debt on its own should anything change. So a nice safety net and anything on top is a bonus.

Ok another Webinar.... BUT, we have just had a Proactive presentation, an interview with Malcy and an Armchair Trader podcast.... and although the last revealed some further aspects of the entire O&G industry it told us nothing new.

Don't want to appear negative but what I am after now (like most probably are) is details as to when the three drills will go ahead and what exactly will be done. 10,000ft lateral or a short prove up job? What are they targeting volume wise? what can we expect? Basically some meat on the bones is what is needed now.
Unfortunately the RNS only said 'to outline future development plans for the project.' I'm hoping this is not just telling us what we already know. That there are three drills. One into the Cane Creek in another part of the acreage, one 50:50 with a partner in the south and one at 16-2 targeting an overlying reservoir. Now we want more details. Maybe even seismic interpretations and proposals.... that would be nice.

If it is just another presentation that tells us about the CPR then it is not really worth it. We have already had three of those previously and if people didn't understand from those and the RNS then they are not going to understand at all.

As for details on Paradox development. Unless they have signed a deal with a crypto company by then or had development plan approvals I do not think there will be anything new on those either.

If they do have all the details then great, but feel if its just about the CPR (again) it'll be a bit of a damp squib.
OK, I am chomping at the bit here but we are into May and drilling is supposed to be in H2.
Here's hoping... at least people can ask their own questions at this one.

Regarding long lead items. I just happened to look at some details for another company (AEX) who are planning to drill and they have ordered there long lead items and will now be drilling in.... November! They were originally targeting Q3 of this year. Over 6 months for these items.....

From their RNS "Whilst seismic operations continue, APT has further advanced the well planning for the CH-1 well with all long lead items contracts now executed. APT reports a target spud date for the CH-1 well in November 2022."

More patience required for pieces to fall into place. Post COVID world is a lot different to how it was before.

HM, I didn’t put PRD as was just going for ones with proven cash flow already and could multibag. But PRD could.
Think at present moment TXP is the biggest proven cash flow and assets with a lot more to come with explo, large amount of seismic and data to back it up and onshore. Plus it’s undervalued.
And to add the caveat. None of this is investment advice and DYOR.

Strum, got a couple of potential 2-3 baggers. Not sure about 5 although my entry point on one should hopefully see 6-8 bags at least. So PXEN have electricity production via gas fields and further gas exploration. And ZPHR have proven exploration in oil with further drilling planned and a large non op portfolio raking in the cash.
TXP. Fingers crossed everything goes well this month and drilling starts in the next months. Someone said Casc online by September…. Not to sure on that so not counting my chickens. But by end of the year will be good.

Setanta1 CNG (Compressed Natural Gas) on site is an option and then tanker out. Would not be as cost effective as using the gas for electricity generation for something like a crypto project or pumping it down a pipeline.
Both CNG and the crypto option would limit production slightly where as a pipeline would only be limited by its capacity.
It is possible but not the best idea in this situation.
Just waiting on that Crypto contract to be signed......

As I have said many times. No large scale activity has been going on at the state 16-2 well. And yes I have been monitoring it on satellite.

As for infrastructure they likely hired equipment for the test.
Now that they know requirements they will have (contracted) designs for the facility. This may include separators, storage, water reinjection, pipelines etc. these designs would go out for tender and then they would contract someone to produce and install. These could take 3-6 months to have produced. And that is assuming that they have legislative authority to do what they want. It is a long process…. Plus they also need to finalise issues around the stranded gas.

People just need to be patient. This is the start of a long journey but there is no point starting it with under inflated tyres and the exhaust dragging along the ground! Let them get on with it. They have the money to do it. They have the drive and contacts to do it. We don’t have to do a lot other than sit back and watch investments grow.
GLA

CH has said there’s no requirement for a JV as they have the funds. But that or a sell off could happen…. It’s just not strictly necessary this year and next year they will have even bigger numbers and more value. As the BOD are largest shareholders I’m sure they’d want a much bigger MCAP confirmed.

If getting the paradox into production and 3 drills is not enough dramatic development this year, I am not sure what is. Most companies may only even do one of those in a year!

Some bullet points
- clearly explained the cpr. Lots of technical data involved
- can add further proven reserves after more drilling
- no farm in, JV or fund raising required
- hedging covers debt and funding requirements for coming years. On top of that is a bonus.
- 50m costs for 100m income
- paradox is the focus and bringing the ‘next Great Basin ’ online
- will not go after any other deals unless they add significant value
- market responded strangely to significant news previously (like I have already mentioned the other day)
- only one of the three new wells classed as exploration
- lots of upside potential and running room

Malcy Core Finance Interview with Colin Harrington

Link Thanks to Micru
https://www.youtube.com/watch?v=eI6mXQr44NE

Any chartists on here?

I usually buy things based on research, knowledge and fundamentals.
This morning however I took a look at the ZPHR chart. I'm not an advanced chartist and don't claim to be. But even with my basic knowledge (bolly bands, RSI etc) everything point to a buy. Any chart people care to comment as always happen to learn on that.

Disclaimer: Yes I know this is aim and charts can be bow lox for a company like this before anyone says

There is NO current production at state 16-2 (paradox).

I'm with MEM. Until they finalise the stranded gas issue that is how it will remain. But they have money in the pot to pull a good deal.

They are going for 'more oily' plays with the next drills so hopefully not a big gas issue with them.

I wouldn't have thought any other capital raise would be needed other than to purchase further acquisitions that are too good to miss out on.
However when the debt funding and raise was announced this also included 'extra' to go towards drilling and 16-2 production anyway. $40m was raised and $36m was required for the acquisition. So $4m extra. And that does not include the cash they have made since from their extended non-op portfolio. So, they have the money and future income to do all this on their own anyway...

The only 'uncomfortable' part is being brought onto the BB by speculations from posters. What happened to trust in the BOD and their own mantra of being responsible stewards?
The market does bizarre things and there are dozens of companies where SP does not reflect true value.

From funding RNS:
o To fund an estimated US$6 million in near-term drilling capital expenditure ("CAPEX") which, along with anticipated additional cash flow generated in the coming months, will accelerate drilling and production growth across Zephyr's asset portfolio.

o To equip the Company's State 16-2 well for production, and to fund development of the surface infrastructure required to enable the sale of gas via the nearby pipeline and/or to a potential 2-megawatt ("MW") cryptocurrency mining facility development to be co-located on the well site.

What is todays price going to be MEM? You are getting good at this.
Hope you are as right with PRDs future price as well....

Joey.
Eyeore2 on the other board posted this on the 20th April
"The status of the Certificate of Environmental Clearance for Cascadura has changed but just refers to an EIA letter of January 21st. The usual admin files are unavailable. Possibly, an update on Cascadura is imminent. "

Other than that I don't know much more.....

CHAIN, drill times can vary depending on many factors once we know what and how they are drilling and rigs and depths etc. they will be able to estimate a timescale.
Last time with the state 16-2 they drilled a vertical first then reentered to drill a horizontal lateral at a later date. They had an extremely good team on both drills and the horizontal was inch perfect. They may choose to re-enter 16-2 again for the drill into the overlying layers or sidetrack but we wait and see their plans.
Drills can go wrong on many levels and even after drilling there are still risks. Even testing can go wrong.

The horizontal lateral at state 16-2 was only 4,500 feet long and I think took around 4 weeks. The 4,500ft was only as a proof on concept. Their plan is to have 10,000ft horizontals with multiples from one pad as per the drilling of the non op portfolio.

I don't think it is any different to what they had before. The Nominated Adviser & Joint Broker was Arden previously, so already in one company. It is only because Arden lost there status due to a takeover that they have switched to Shore to be the Nominated Adviser.

Exactly the same thing happened with this company before.
Wasn't quite as big a delay, but people started stressing over when news on the overlying layers analysis was going to come. The share price slowly crept up around 7p (I think). Then news finally came about the overlying layers and that they had high graded several of them for further exploration. Think it was somewhere along the lines of 8 out of around 30 layers. There was excellent news but a technical RNS that the market just couldn't understand and the SP plummeted from 7p to 5p. It was absolutely crazy.

The same thing has just happened again and the SP got slightly inflated before a sudden drop we have witnessed. People who understand the fundamentals will still be in this but the traders saw the drop and jumped out.

I said before that I didn't think the CPR would make a big difference as I was more interested in the 3 upcoming drills. Hopefully this SP drop focuses the BOD to work even harder on bring those drills home (and getting 16-2 into production) as that what will really cement a higher SP for everyone.