Current Situation4 Jul 2023 18:47
This is my summary of current activity and potential news flow:
Zenith Energy has been a real poor performer but could be about to get interesting.
Trading at 12 months lows with a market cap of £8m. Raised £2.25 million in Feb which the board took place in.
Profitable Italian assets producing gas and electricity – fixed cost of 35K Euro’s per month, current monthly revenue 150k down from last years high of 530k.
In 2019 acquired the rights to renew 25 year licence of Tilapia in Congo from AAOG for 200k. With it they acquired outstanding monies from two parties. Debt owed to Zenith by SNPC - approx.US$5.3 million plus accrued interest, SNPC started a repayment plan and then stopped paying. A successful outcome will result in the oil exports being seized as payment, legal action in place.
SMP", formerly Société de Maintenance Pétrolière - SMP) the rig contractor that performed drilling services in wells TLP-103 and TLP-103C of the Tilapia oilfield during 2018-2019 has continually put up no defence as part of a $9 million claim. The court today rejected any further delays and the case will be heard September 29th 2023.
During Covid they acquired a number of oil concessions in Tunisia. These performed well until interference from the current corrupt government, this has now gone to the INSID Arbitration, with claims of 48million.
They are currently negotiation for electricity generating assets Italy, 10 oil acquisitions in the US with an acquisition budget of 10 to $20 million funded through Zenith Euro bonds.
Exclusivity for Block 1, Sèmè Field in Benin is being negotiated – approximate daily production 2,000 BOPD.
Entered a share purchase agreement ("SPA") with OMV Exploration and Production GmbH ("OMV" or the "Seller") to acquire 100% of the outstanding share capital of OMV (Yemen Block S 2) Exploration GmbH, OMV Jardan Block 3 Upstream GmbH and OMV Block 70 Upstream GmbH (collectively "OMV Yemen"), produces 7400 BOPD.
Last week signed an MOU with Sudanese government to negotiate purchase oil licences.