Member Info for AGEOS

Much of the speculation regarding ZEN's activities in Azerbaijan posted on this BB in recent months appears to be based on a lack of understanding of the REDPSA (Rehabilitation, Exploration, Development & Production Sharing Agreement) between ZEN and SOCAR (State Oil Co of Azer Republic). It is important to bear in mind that the REDPSA is between the Aran Oil Operating Company Ltd and SOCAR, and that Aran Oil is a Joint Operating Co in which ZEN has an 80% interest in the form of Zenith Aran and SOCAR has a 20% interest in the form of SOA (SOCAR Oil Affiliate). All operational matters are therefore under the joint control of ZEN and SOCAR and there are protocols shared by Zenith Aran and SOA staff regarding operational decisions and implementation at all levels.
BB posts implying that AC is somehow personally involved in all operational decisions and their implementation are therefore manifestly baseless as well as being functionally absurd; operational matters are 'joint and severally' shared by Zenith Aran and SOA.

That part of the REDPSA which relates to the Rehabilitation & Production programme for the Contract Rehabilitation Area (ie excluding the Exploration Area) is subject to a number of targets, one of which required an increase in production to c310STB/d for at least 90 consecutive days by 3rd Oct 2019 (ie 2 yrs after programme approval). The then average production rate of c270STB/d clearly fell short of this target so on that date Aran Oil was legally in default of it's obligations under the terms of the REDPSA. Wearing my former corporate legal hat I assume that ZEN's lawyers (and SOA's too) would have advised a cessation of all current developmental operations ie C-37 and preparations for C-30 & M-247 from the 3rd Oct 2019 until such time as SOCAR provided legally binding assurance of a continuation of that part of the REDPSA contract. For Aran Oil to have continued with such developmental operations would have constituted illegal corporate activity.
BB posts suggesting a discontinuation of the REDPSA failed to acknowledge that the Exploration Area constitutes a separate part of the Agreement unaffected by the production shortfall and that SOCAR would be writing off it's 20% interest in that part of the REDPSA.
Tuesday's (11.01.2020) RNS confirms by implication, legal reinstatement of the REDPSA, so the Azer programme should now be back on track with C-37 underway within 30 days.
PS. Buying every ZEN share funds will allow.
AGEOS.

The following extracts from recent RNS's appear to indicate plans for a possible acquisition of assets in Norway:

“Consolidation of Italian portfolio will strengthen Zenith's credentials as a natural gas producer to support the acquisition of additional natural gas production assets in other regions, including Norway.” ref RNS 03.12.2019 re Acquisition of Coro Energy Italian Assets.

“Upon completion of the proposed acquisition of Nordic, Zenith intends to use Nordic as a vehicle to pursue the acquisition of mature energy production assets, as well as for potential participation in future licensing bids organised by the Norwegian Ministry of Petroleum and Energy.” ref RNS 04.11.2019 re Proposed acquisition of Norwegian oil and gas company.

“Zenith will continue with its plans to establish a Norwegian vehicle for intended participation in future licensing bids to be organised by the Norwegian Ministry of Petroleum and Energy, as well as to actively pursue the potential acquisition of mature energy production assets.  The Company intends to create a Norwegian subsidiary (anticipated to be named Zenith Energy Norway AS) in the immediate future.”
“It is expected that the acquisition of further European natural gas production assets may be completed in the near future.” [Note: this post-dates the Coro Asset RNS so must refer to other assets.]
“Andrea Cattaneo, Chief Executive Officer of Zenith, commented:
At the same time, we are pleased to have found a strategically preferable, non-dilutive, alternative avenue for the imminent establishment of our presence in Norway."
Ref RNS 09.12.2019 re Proposed Acquisition of Norwegian Subsidiary [Acquisition discontinued]

In May 2019 the Norwegian Ministry of Petroleum & Energy invited bids for an APA (Awards in Predefined Areas) which includes already explored areas on the offshore Continental Shelf which can be developed in conjunction with existing platforms and infrastructure. Applications have been received from 30+ companies and licences are due to be awarded early 2020. Whilst Zenith would clearly not be a lead bidder it could conceivably be a participant,.with its gas to energy expertise foremost.
Pure speculation on my part.
AGEOS.

As referenced today by slicevolley, the 12.12.2019 RNS refers to current consultation with SOCAR to identify location for an exploratory well within the Exploration Area of the REDPSA to be drilled in 2020.

For the benefit of those unfamiliar with the Azerbaijan assets, the Exploration Area of c100sq km extends to the SW and NW of the Zardab-Shikhbagy Field as illustrated in Slide 05 of the 2019 Investor Presentation accessible from the ZEN website. None of the area has been drilled previously and the seismics indicate that for the SW block a depth of 4700-5200m is necessary to intercept the Cretaceous, a pre-requisite for any exploratory well. The NW block requires a 4500-4300m well depth but is probably of secondary priority.

Since the 6300m capability Genesis BQ500 2000HP rig is not due to be delivered until early 2021, and as I speculated on 21.12.2019 may be diverted to the Congo, this exploratory well in Azer may be necessitating an upgrade to the in-country 4600m capability BD-260 rig. AC mentioned “possible enhanced rig specifications” in an interview prior to 06.10.2019 when talking about plans for the then proposed ZEN-01 well which had a 4900m TD target.

The recent hiatus in operational news regarding C-30 may therefore involve more than 'awaiting permission from SOCAR to commence drilling'. Maybe ZEN are upgrading the BD-260 rig in anticipation of both M-247, for which >1000m laterals may be intended, and for the Exploration Area well.
AGEOS

Whilst market interest and perceived potential in the Tilapia Field acquisition is understandable, the valuation placed upon it, as indicated by historical AAOG market capitalisation (£24m based on 238m shares @10p on 09.01.2019.) appears somewhat irreconcilable with the value placed on ZEN's Azer assets. To illustrate this point, compare Tilapia with the Zardab-Shikhbagy Field which is only 25% of ZEN's potentially productive Azer acreage.

The Tilapia licence area is c50sq km and the main reservoir and exploration targets within that area are the Pointe Indienne R1 & R2, Mengo and Djeno Sands, the volumetrics, petrophysical characteristics and recoverable oil and gas contents of which have still to be fully ascertained (ref CP Report Oct 2016).

The Zardab-Shikhbagy Field, on which I posted considerable detail in 2017/18, is 156sq km in area plus a possible c20sq km Gishlag extension, and apart from some very limited soviet era exploratory drilling (18 wells) is an undeveloped resource, not included in the CPR's 30.6Mbol 2P reserves, but with extensive known reservoirs in the Maykop, Eocene and Cretaceous.
Z-21, the subject of the blow-out video posted here on Monday and one of 6 wells on the Zardab High, was drilled during soviet times to c3050m into the Maykop and produced between 1095 and 146 bopd, declining as it became progressively sand-plugged during the course of a week. The blowout in 2017 was an unexplained and delayed response to a coiled-tube intervention which produced a 10-day periodicity in well-head pressure build-up to c4000psi, indicative of significant reservoir connectivity. Close proximity of Z-21 to Z-3, which the soviets flow-tested in 1979 at 2450-2800bopd from the Eocene between 3200m & 3500m, prior to well collapse, and to Z-7 the oil geochemistry of which indicates active oil up-flow from a 6000m+ deep source to the west, strongly suggests that Zardab and adjacent Shikhbagy are part of an active petrophysical system. Seismic profiles indicate the Eocene and Maykop extending over most of the 156 sq km and underlain by Cretaceous volcano-clastics and carbonates comparable with those of the adjacent Muradkhanli,Field from which production peaked at 10,000bopd in 1978.

Development of Zardab-Shikhbagy awaits a deep appraisal well to acquire essential geotechnical data and maybe additional seismic before initiating a drilling programme. Regardless of those preliminaries this asset alone appears to have a potential at least comparable with that of Tilapia and yet apparently totally ignored by the market. However, not at all surprising as 'the market' is demonstrably inept at anticipating value from geological resources of any kind.
AGEOS.

SEA7, the BQ500 is surely a more likely candidate for shipping to the Congo, as I've already posted on Tuesday.

Please correct me if I am wrong, but my understanding of the extract from the AAOG AIM Admission Document below, is that the basis under which AAOG jointly operates Tilapia, and the PSC with SNPC, both end on 18.07.2020. Also legal title to Tilapia resides with SNPC and it is under no obligation to extend the current agreements with AAOG beyond the 18th July.

Part II Risk Factors, page 39 para “k” .
“The Enlarged Group may fail to obtain a new production contract
PK (Petro Kouilou S A) currently operates Tilapia pursuant to the PSC (Production Sharing Contract with SNPC) and the JOA (Joint Operating Agreement with SNPC), both of which have been extended until 18 July 2020. Notwithstanding that it is in the interests of both the Government and SNPC to further extend such agreements, and agreeing to extensions is consistent with past practice in respect of Tilapia and other fields in the Republic of the Congo, there can be no guarantee that an extension of the agreements will be granted beyond 18 July 2020 or that the terms of the agreements will not be materially adversely amended.”

Accepting my understanding of the above to be correct, that suggests a rather obvious probability ie SNPC will refuse to extend the agreements with AAOG citing past failure to adhere to the JOA and irrespective of the Align initiative even if successful will either put the Tilapia Field out to open tender or will strike a deal with ZEN.

Declaration of interest; I am a geologist with a share-holding in ZEN, as my post history will indicate. I do not and never have had any shares in AAOG in part due to the Oct 2016 CPR estimated recovery factors of 5-20% for oil and 60-80% for gas from the Tilapia Djena reservoir, there being no local market for gas. The wisdom of ZEN's current interest appears partly justified by being a gas to power specialist in Italy, a technology apparently favoured by SNPC and the government, otherwise I would have reservations about ZEN's potential involvement.
AGEOS.

I've been looking at the seismic, stratigraphic and geo-structural data for areas adjacent to Tilapia and, as New Age (African Global Energy) Ltd , 75% holders of the Marine III coastal concession have found, Tilapia is bordered by extensive sub-Loeme Salt drill-targets. SNPC will want to see that prospectivity actively exploited in the Tilapia concession so maybe AC, after appropriate consultation with ZEN's geologists, has convinced them of full compliance to that end.
Perhaps the Genesis BQ500 2000HP rig, the operating lease for which is due to commence early 2021, has been offered for use in Tilapia for a 2/3yr+ subsea drilling programme. The 6300m drill capacity has the capability of accessing the Chela, Mengo, Djeno and Vandji subsalt clastic plays, which dip steeply westwards, for several km out from shoreline drilling pads.
The BD-260 rig must surely be kept in Azer both to comply with the SOCAR contract and to generate much needed revenue.
Interesting times ahead and hopefully a prosperous 2020 for all ZEN LTH's
AGEOS

Today's RNS appears to imply the imminent or near-term potential non-dilutive acquisition of natural gas production assets in Europe, probably Norway, if my understanding of the wording is correct.
The last sentence of the fourth paragraph, ie “It is expected that the acquisition of further European natural gas production assets may be completed in the near future.” clearly implies this is additional to the Coro assets but could be interpreted as inclusive of the statement in the 3rd paragraph that “Zenith will continue with its plans.....for intended participation in future licensing bids to be organised by the Norwegian Ministry of Petroleum and Energy, as well as to actively pursue the potential acquisition of mature energy production assets.”
The last sentence in AC's comments however, ie “At the same time, we are pleased to have found a strategically preferable, non-dilutive, alternative avenue for the imminent establishment of our presence in Norway” appears to imply the recognition of an “alternative avenue” yet to be disclosed ie alternative to Nordic, Zenith Energy Norway AS, or future licensing bids.
Maybe the potential 'Christmas Present' is therefore the “non-dilutive acquisition of (additional) natural gas production assets”, which would be welcome if, of course, accompanied by a positive update on Azer developments.
AGEOS

Bear666, thanks for the prompt. My thoughts on C-30 are as I detailed in my 06.10.2019 post and concur with those outlined today by Ezhik.
In brief, my reasoning is that the initial flow-rates reported from C-37, as “up to 100bopd”on Oct 3rd, increasing to “approximately 285bopd” on Oct 9th but not subsequently confirmed as a “stabilised flow-rate”, is indicative of production from a localised zone of secondary permeability. This would be consistent with the production characteristics of the Middle Eocene reservoirs throughout the region, having poor porosity and primary permeability but good secondary permeability due to localised zones of natural fracturing. If C-37 has intercepted such a zone it would account for the rapid rise in flow-rate, and a possibly unstable subsequent flow-rate partly dependent upon the connectivity, or lack off, with adjacent fracture zones. Poor connectivity could lead to a significant decline-rate, a factor which had been mentioned previously by ZEN with regard to earlier well interventions.
If I am correct in this speculation regarding C-37, then my 06.10.2019 posted scenario of a down-dip lateral side-track at C-30, as similarly suggested by Ezhik, must be under consideration. A 500m+ lateral, if successful in intercepting multiple fracture zones, could produce 3-5 times that of a vertical.
Thanks SEA7 for all your valuable input re the proposed CORO acquisition which I'm slowly assessing.
AGEOS

continuation:

The fact that OMI state they are in discussions with Corantioquia “to reduce the area affecting the ANZA project” implies that although the conservation designation “allows mining activity to co-exist under special controls and requirements” the company must view this as potentially limiting. As such, investors are entitled to be informed of the outcome and its implications, and with the October 2019 end to the current extension of temporary forest protection imminent, a conclusion or further extension is due soon.

I note, there is no reference to this issue in the MD & A (Management Discussion & Analysis) for the 3 months ended August 31st 2019 filed on SEDAR Oct 15th 2019.

In anticipation of any accusations of 'negativity' in response to this post, I would remind those concerned that on 12.10.2018 I posted a very detailed quantitative analysis of the APTA prospect and calculated an indicated resource based on currently available core-log data as c500,000oz Au, a calculation which was subsequently and independently confirmed by the Miranda Gold Corp (now Outcrop Gold) reference to it as a “plus 0.5m oz Au discovery”, as posted 18.12.2018. That remains the 'bottom-line' indicated resource but, as several of my subsequent posts underline, with considerable additional potential.
AGEOS.

As previously posted on 18.09.2019, the OMI latest Annual Information Form, for the year ended 31.05.2019, submitted to SEDAR on 03.09.2019, confirms that parts of the ANZA region are subject to an ongoing environmental assessment for possible designation as protected TDF “tropical Dry Forest” and page 17 of the Report also confirms that OMI “is in advanced discussions with Corantioqua, the environmental authority for the Department of Antioquia, together with neighbour mining players in order to agree a new delimitation of the TDF which reduces the area affecting the ANZA project”.

In the absence of any further information from OMI regarding this issue, the following may be of interest to those wishing to monitor its progress and assess its significance. All of this information is in the public domain via Corantioquia.

The area proposed for environmental protection is the most southerly of two regions bordering the Cauca river designated as “Bosque Seco Tropical area 11” as listed under “Declaratorias 2017”. To the west of the river the area constitutes the eastern third of the administrative municipality of Anza and extends south into the NE corner of Betulia municipality and north into Santa Fe de Antioquia. Its extent on the eastern side of the Cauca river is not relevant to OMI's interests.

When superimposed onto the map which defines OMI's current and anticipated mining concessions the effect is to include within the proposed forest conservation area:
A. c80% of the 3903 hectare LHO-08011 contract application area, including almost all of the 'Jesuitas' target.
B. c50% of the 6219 hectare ICQ-080035X contract application area, including the eastern 25% of the 'La Cejita' target & radiometric anomaly.
C. All of the c3000 hectare, NE portion of the T13635011 current mining concession contract area between 'La Cejita' and the Cauca river.

All other current mining concession contract areas, including the APTA prospect and the Charrascala and Guaimarala targets appear to be west of and therefore outside the proposed forest conservation area.

to be continued

Ezhik, you're right that the wells you mention are indeed candidates for M Eocene perforations especially M-23, 24 & maybe 25 as all three are in the SE Pool adjacent to Jafarli. M-205 is in the South Pool and at the eastern end so again adjacent to Jafarli. They are however amongst the exceptions as the hundreds of wells in Muradkhanli Pools 1,2 & 3 pass through Upper Eocene directly into U Cretaceous volcanics, the latter being the main reservoir producer.
Glad to know you're still involved as you had some of us worried a few days ago when you went silent. There were some big sells during the SP dip so imaginations were running amuck. Better times ahead I can assure you.

OilNO,,you appear to have misunderstood my post of 16.32 yesterday, for which my apologies for not making it clearer. Ezhik's response of 07.19 today has hopefully clarified the main point you raise.

With regard to the well perforations mentioned in the 14.10.19 RNS, and this is an observation applicable to all today's posts on the subject; few if any perforations will be into the M Eocene. Most of the producing and recently suspended wells in the Muradkhanli Field are concentrated in Pools 1, 2 & 3, ie on the crown of the Cretaceous Structural High over which the M & L Eocene and Palaeocene do not extend. Perforations therefore will most likely be confined to the Upper Eocene, in the wells where that rests directly on the U Cretaceous volcanics, and more so to the Middle Miocene Chokrak at c3000m and to the L/M Pliocene Productive Series at 1500-2000m. It is only a few marginal wells and any in the sparsely-drilled South and SE Pools which might offer opportunities for perforations into M Eocene flanking strata.

MudPump, I have no doubt that SOCAR contribute to operational decisions so will be relaxed with the ZEN-01 'postponement'. In fact, Gadirov, head of geophysics, has identified what he believes is an unexploited favourable structure 2.5km SE of Pool 1 Muradkhanli which will no doubt be in contention for an appraisal well, so maybe that will be an alternative ZEN-01 target. Also, as Ezhik reminds us, Zardab is virtually an untouched field for which a new appraisal/development well must be high priority.
Good to see you both back on the BB.
AGEOS.

Today's RNS discloses a change in the BD-260 rig drilling schedule which I presume is, at least in part, influenced by the geotechnical data derived from C-37. The M-247 well is c3km NE of the site chosen for ZEN-01 (ie adjacent to M-12) as defined in the current '2019 Investor Presentation' on the company website and is close to the E margin of the Sarisu lake/marsh. See page 294 of 2017 Chapman CPR Report for plan of Muradkhanli Field South Pool.

Most importantly M-247 will intercept the U Cretaceous at around 4400m, 400m higher than ZEN-01, so presumably within the current capabilities of the BD-260 rig even with sidetrack operations. ZEN-01 would have definitely required a power upgrade to the BD-260 and is now perhaps best delayed until we have the BQ500 which has a 6300m capability

M-247 was producing from the M Eocene in 1990 at a depth of c4000-4100m which will allow a lateral of up to 500m to be drilled if so decided. The M Eocene strata pinch-out eastwards ie thin to zero, in a flank-trap against the Muradkhanli Cretaceous Structural High, so any lateral drilled from M-247 may be directed up-dip into such a trap or alternatively may be oriented NW along strike and beneath the lake margin. However, there are far too many other influencing criteria to make any such prediction. As Ezhik has rightly emphasised, the integrity of the well has apparently still to be tested, if that tweet of the well-head is a recent photo.

As to possible production from the U Cretaceous, which will be either a down-faulted extension of the carbonates drilled in C-37, or the underlying volcanics which with up to 30% porosity are the main Muradkhanli reservoir, the potential is unknown and anyone's guess. The Middle Eocene on the other hand was producing 200bopd in 1990. A tantalizing comparison is with M-208 in the Muradkhanli North Pool and on the NW margin of the lake 8km along strike. This was drilled in 1980 and produced up to 2100bopd from a M Eocene flank-trap, directly comparable in my view with that interpreted for the M-247 location, before failure due to 'mechanical difficulties'. The 8km's between the two wells is a measure of the unexploited M Eocene flank-trap potential along the SW margin of the Muradkhanli Field.
AGEOS.

Thanks Sentimentalist, your kind words are greatly appreciated. However, no-one, least of all me, has geological mastery of oil exploration, as half a century in pursuit of such a goal, has taught me. This prompts me to attempt an explanation of a basic truth regarding the application of geoscience in this business which few investors appear to understand ie its fundamentally probabilistic nature.

Using any well as an example, to a large extent the success or otherwise of an intervention is pre-determined even before the well is chosen as a target. That is because all the physical and chemical factors inherent in the geological environment , which determine the presence of oil and its potential for extraction in commercial quantity, pre-exist and can only be accessed and evaluated indirectly. Also those factors are only marginally susceptible to human influence (eg chemical and physical manipulation). What the geologist attempts, is to quantify as many of those factors as possible and to assess the probabilities of that combination of factors being conducive to meeting the objective of producing oil in commercial quantity.

Common-sense or. a simple consecution many will say, but how many than go on to blame the CEO or the operational crew when the result of a drill is below expectations? All we can realistically conclude as investors is in answer to the question, what are the probabilities of a favourable outcome in any given situation and to what extent do we trust the competency of ZEN's key personnel to make similar probabilistic assessments on our behalf. As AC intimated in a recent interview, of any10 new wells drilled on ZEN's Azer assets, two will fail and one will produce 2000+bopd, this being a probabilistic (“statistical” was the word he chose) estimation of a range of outcomes. My assessment of all the geological factors conforms with a similar prognostication hence my continued investment in the company.

Hope that makes sense, although after today's SP fall I doubt it will be a welcome read for many.
AGEOS.

Although there was no confirmation of oil shows from the U Cretaceous of C-37 the 03.10.2019 RNS reference to “wireline logging....providing important indications surrounding the potential productivity of the formation across the company's Azerbaijan assets” does suggest some positive indicators of reservoir potential elsewhere in ZEN's acreage. These indicators are most likely to be in respect of the primary and/or secondary porosity of the limestones and if the latter, of the presence of dolomitisation and/or open joint fracture-systems. Providing these characteristics are associated with good permeability these rocks are known to be excellent reservoirs.

The C-37 well-log indicates c223m+ of U Cretaceous “clay and carbonate facies” which is not consistent with the Jafarli Field carbonate-capping being a remnant limestone reef as I previously conjectured, and hoped as this could have then been a classic high volume oil-reservoir bounded by fault feeder-conduits to E and W. The Jafarli oil (from C-21 to be precise) is considered, from recent geochemical studies, to originate from Oligocene (Maykopian) and Lower Cretaceous source-rocks at 6000m+ depth immediately SW of the ZEN acreage. Hence the ZEN-01 U Cretaceous carbonate target as shown on slide 10 of the current 2019 Presentation on the company website, as this appears from the geophysical evidence to be a potential reservoir-trap for rising hydrocarbons. Although the C-37 U Cret carbonates lacked commercial oil there is no reason to assume the same for the ZEN-01 Muradkhanli target. There will also be similar targets elsewhere on the ZEN estate as the full extent of the U Cret carbonate facies becomes more evident and better understood

In recent years the National Iranian Oil Company has targeted the Upper Cretaceous of NW Iran in an area 75-150km due south of ZEN's interests and on the southern margin of the Kura Basin. The rocks appear to have similar facies characteristics and to have been deposited in similar environments to those on the NE side of the Basin so their recognition in Iran as important reservoir targets is further encouragement for ZEN's initiatives.
AGEOS

On 11.09.2019, I posted a review of some of the factors which I considered might have a bearing on the possible flow-rate from C-37 and concluded that “It is not possible to offer a predictive flow-rate from this assessment although the factors outlined, support the indications from ZEN's news releases of a significant flow-rate.”

The RNS of 03.10.2019 reported “Initial testing of the well has indicated that well C-37, if placed on full production, can produce up to 100 barrels of oil per day with a water cut of approximately 50 percent.” Sub-100bopd is well short of what I, and I assume many others, understood to be ZEN's expectations of a “significant flow-rate”. However, much will depend upon the yet to be determined 'stabilised flow-rate' and the subsequent 'decline rate' as to whether C-37 can emulate the long-term productivity of C-22 and Well 5, the two comparable wells in the same fault-block (see 11.09.2019 post for details). As Ezhik has rightly emphasised, producing 'open-hole' has its risks, although 'sanding' appears not to be a significant problem in the Jafarli Field, more so in Muradkhanli and Zardab. Presumably the natural hydrostatic pressure plus the fluid-flow frictional pressure does not exceed the fracture pressure of the weakest formations in the Jafarli Field, hence limited disintegration of sandstones and other clastics to produce free sand. The decision to plug the well above the Upper Cretaceous was in part to protect against a heightened hydrostatic pressure.

As to the liner hanger system failure, the well is presumably cased but not cemented down to the top of the Middle Eocene since it is, most likely, the hanger at the interface of the production casing and production-liner where the malfunction occurred. Reference in the RNS to “the liner hanging system failed to set” implies that the liner setting tool procedure was inoperable hence cementing could not proceed.

With regard to C-30, I have previously posted that this is c500m W of C-37 and the M Eocene intercept is up-dip by 50-100m elevation. If the flow-rate and decline-rate at C-37 prove below par it is therefore possible that C-30 plans could be amended to introduce a c500m down-dip lateral to intercept the full extent of the intervening M Eocene clastic facies. One of the options for ZEN-01 entails laterals beneath the Muradkhanli marshland so they presumably have plans for directional drilling in place and have already announced intentions to enhance rig specifications. A lateral at C-30 would be a practise run with the potential to hit that 1000bopd end of year target.
AGEOS.

Bhargav: thanks for your response although the tenor of it suggests you do not appreciate the significance of the points I raise. I “keep talking about” (your words relating to 5 posts since the first on 21.12.2018) these issues, because they are the determinants of Newmont's exploration programme at ANZA and no-one else contributing to this BB bothers to even mention them. As to contacting Ignacio, as a fellow-geologist I do so whenever necessary but have no need for “help to determine my investing” as I base my investment decisions on 'verifiable evidence' never on opinions. I assess the potential of ANZA from the same perspective as the Newmont geologists and as outlined in many of my previous posts, “a prospect, the significance and commercial viability of which remains to be proven”.

As to your later insulting post, the condemnation is of yourself. If you knew the 'person' to whom you refer, and his motives in sharing a lifetimes knowledge and experience as a geoscientist, you would be mortified with self-recrimination.

Shez86: thanks for your kind response and very pertinent question. It is probably realistic to assume that Newmont would not have entered into the ANZA Exploration Agreement without assurances of a successful outcome to Orosur's applications for the 3 outstanding concessions. It is therefore more a question of when, not if, the concessions will be granted, and it appears that the 'when' must await conclusion of the TDF “Tropical Dry Forest” designation, hopefully to be concluded this October.
As a new investor in OMI accept the inevitable share-price volatility and add on the lows if you can. My assessment of the 'geological probabilities' for ANZA puts OMI very high on the investment list.

continuation:

Page 17 of the Annual Information Form confirms “The environmental authority has already determined that the area to be protected within the ANZA titles will be categorized as an Integrated Management Regional District. This category allows mining activity to co-exist with the TDF under special controls and requirements.”
It remains to be seen whether these “special controls and requirements” might conflict with the large-scale mining operations which Newmont would no doubt wish to implement if a potentially substantial ore deposit was identified. The APTA prospect, as currently defined, appears to be too small for Newmont's interests. However, a further note on page 17 of the Annual Information Form, states “the corporation (ie OMI) is in advanced discussions with Corantioqua (ie environmental authority) together with neighbour mining players in order to agree a new delimitation of the TDF which reduces the area affecting the ANZA project” thus implying emphasis on an area within ANZA but adjoining that of either the Miranda Gold Corp (Oribella Project adjacent to APTA) or AngloGold Ashanti (Guintar Mines N of the Charrascala target).

As the Environmental Assessment period was extended last year until Oct 2019 it is possible that all will be resolved later this year but until the outstanding Exploration and Exploitation Concessions are granted and the integration process required by Newmont is completed, developments in the ANZA-wide region appear to be constrained.

For further details see posts dated 07.02.2019 re ANZA Future Drilling & 12.03.2019 re N 43-101 Amended Tech Report.

For those wishing to understand the gold mineralisation at APTA and elsewhere in the region my posts from 13.10 2018 re APTA Au Resource, onwards, may be of interest.
AGEOS