Member Info for Ajmalkhuram

Zengas I have read through the Zenith half-yearly account and am very happy with what I can see there. The Italian assets continue to generate a reasonable revenue even with the gas prices nowhere near as high as they were last year.

Despite the company having only $1 million in cash in the bank,, it is important to note that Zenith Energy is solvent and well positioned to fund its Kazakhstan assets through a €25 million debt program.

While the cash balance may seem low, it is essential to consider the company's overall financial health. Zenith Energy has a strong asset base, which includes revenue generating assets in Italy and an incredible deal in place for enormously valuable oil and gas reserves in Kazakhstan. It is well positioned to fund its Kazakhstan assets through a €25 million debt program. This clearly plays a crucial role in Zenith’s ability to fund its operations and further develop its assets and provides the necessary financial resources to support the company's growth strategy.

It is also important to highlight that Zenith Energy has a solid track record of successfully executing its debt programs in the past. This demonstrates the company's ability to manage its financial obligations effectively. Additionally, and even more importantly, it show that Zenith has established strong relationships with financial institutions, which further supports its ability to secure funding for its operations, both now and in the future.

The Zenith management team have a proven track record of making excellent acquisition decisions that have delivered valuable assets to the company for very little up-front cost. The Tunisian acquisitions made the company a huge amount of money before the Tunisian government broke the contract and they look like they may deliver hundreds of millions more in compensation from the various arbitrations that are in progress.

Once the company commence the debt program then the Kazakhstan and US acquisitions can be funded with no dilution to shareholders so it is evident that the business plan in place is sensibly financed and more than enough to deliver the ambitious company objectives. If they are successful with the Kazakhstan drilling operations then this is likely to be a transformative year for the company.

Botham that’s incorrect the deal has been fully closed.

Wiping out spreads about to bounce naughty games by the MMs

Courtesy of MGS

It looks like Zenith have gotten really serious really quickly with this arbitration process, this latest arbitration is bigger than the other two combined and takes the total amount that Zenith are suing for to US$140,300,000. This is serious money.

I liked the details in the latest RNS of exactly what they are claiming for, and I really really like the fact that the amount of $US85.8 million is a figure that has been assessed by a third-party independent expert. This is big money Zenith are after from Tunisia – more than 10 times the company’s current market cap in this arbitration alone, and almost 20 times the market cap when all three are put together. It will obviously take time to go through the system, but ultimately if they are successful then Tunisia will have no choice but to pay.

It wouldn’t be the first time that a small oil company have been successful in an arbitration against a nation state either. In August 2022 the International Centre for Settlement of Investment Disputes ruled in favour of Rockhopper against the Italian state when Italy unilaterally rejected Rockhoppers legal license to drill. In this case the International Centre for Settlement of Investment Disputes awarded Rockhopper €190 million plus interest https://rockhopperexploration.co.uk/2023/04/update-on-arbitration/ , and this was for damages on a well that was never even drilled. Obviously, Italy have appealed and the process is still continuing, but it is looking very likely that Rockhopper will see their money in 2024.

If Zenith can start acquiring US and Kazakhstani production assets as the company has planned and these deliver regular cashflow over the next few years then the company’s share price will increase significantly anyway. With the arbitration process grinding on in the background while this happens then at some stage there is going to be a huge share price increase if/when the final award comes in.

I’ve got to hand it to AC. He acquired the Tunisian assets for $250k and is now suing for $140m in damages because of the acquisition. If he is successful then that will be a hell of a return on his investment.

I bagged 31249 shares earlier….strong close I think

Money flooding back in

Tyb showing 14% Google price

Great news

'Pauldeano the more I read your posts the more I release you have no clue about the company LOL.'

I concur also

Ezhik please explain why that $4.6m isn’t enough.

Paul with all due respect this is what you posted

“It would seem AC is the problem Congo did not want to deal with him and Tunisia have seemingly taken the same stance. “

Then you change your argument that Congo being a bad place is the reason he didn’t get the license?.Makes no sense at all.If you’re going to deramp at least deramp properly with facts not baseless statements conjured up in your head.

Paul so you couldn’t answer the question as expected

Paul can you explain why you believe it was Acs fault that zenith were not awarded the license?..please explain your view

There are currently ample cases against the Congolese in terms of corruption.the arbitration court case win will also prove this.

Kazakhstan is indeed a significant player in the global oil and gas industry, possessing substantial oil reserves and being one of the top oil-producing countries in the world. The country has attracted international investment in its energy sector, and several major oil projects are underway.

Here are some factors that make Kazakhstan an attractive place for oil production:

Abundant Reserves: Kazakhstan has substantial oil reserves, particularly in the Tengiz and Kashagan oil fields. These reserves make it a key player in the global oil market.

Investment Opportunities: The Kazakh government has actively sought foreign investment in its energy sector. This has led to the involvement of major international oil and gas companies in exploration and production activities.

Infrastructure Development: Kazakhstan has invested in developing the necessary infrastructure for oil production and transportation. The country has pipelines and export routes that facilitate the movement of oil to international markets.

Political Stability: Relative political stability compared to some other countries in the region makes Kazakhstan an attractive destination for oil production. A stable political environment is crucial for long-term investments in the energy sector.

Geopolitical Considerations: Kazakhstan's strategic location, bridging Europe and Asia, contributes to its importance in the global energy landscape. The country's geopolitical position can influence its relationships with key energy consumers and transit countries.

“ It is our intention to achieve circa 400 barrels of oil per day as a starting point prior to gradually scaling up production via field rehabilitation operations and the drilling of new wells made possible by acquiring an asset with a favourable geology and material reserves. “

400 bopd a good starting point

Courtesy of Marketgunslayer

This is an interesting RNS, that is probably more important for what it does not say than what it actually does and definitely raises more questions than it gives answers.

All the RNS does is inform us that €120,00 in costs against ETAP and that the court has rejected ETAP’s request to include the Tunisian State as a co-defendant. However, the very scale of the award to Zenith gives a clear indication of what is going on in the arbitration process. After all, the Paris Commercial court only awarded Zenith €30,000 from the SMP to Zenith back in July for what they described as "all the characteristics of a dilatory request". The ICC has awarded costs of four times that amount and this suggests that the court is extremely irritated by the behaviour of ETAP in the process so far.

It makes me wonder what on earth ETAP could be doing behind the scenes to annoy the court enough that they gave this judgement against them . the award connected to the fact that ETAP have tried to bring the Tunisian state into the arbitration or is it something else?

Whatever the reasoning behind the judgement, the very fact that the award has been issued certainly suggests that the process so far is going well for Zenith and badly for ETAP. And feels like it is a good sign of things to come.

The next step is of course going to be enforcing the judgement of the court, which will be another test of Zenith’s legal capabilities. Will ETAP simply pay the award or will Zenith have to enforce it? If they do have to enforce it will they be able to draw down the money from the $6.5 million of funds that they seized in Switzerland back in July this year?

As I said, today’s RNS definitely raises more questions than answers but it does give an indication that the arbitration is proceeding positively and the enforcement of the judgement will tell s a lot more as that news comes out.

We still need updates on Kazakhstan though.

Https://ibb.co/JjSXqzW

https://ibb.co/QQhb6mw

Cattaneo going after the full $48m

Flash no one cares jog on

26-Oct-23 15:01:58 3.225 40,310 Buy* 1,300 O

26-Oct-23 12:00:17 3.19 36,050 Buy* 1,150 O

26-Oct-23 11:56:26 3.19 31,348 Buy* 1,000 O