Member Info for callit

Validation that Cloudveil have something of value; Can't wait for those contracts to pile in. Best get used to RNS's here :) GLA DYOR

Things looking up at #RMS.

Everything is going AI now; The concept of 'something's afoot' could well be replicated by an automated system.

Fron May 5, 2020 RNS:

"Our focus is now on finalising the necessary regulatory process for the transfer of ownership, as well as concluding negotiations for a new 25-year licence.

At the same time, our technical team is making all the necessary operational preparations for planned drilling activities in well TLP-103C."

Our technical team are already on it.

Interesting view AGEOS.

The one question I ask myself is, "Why does AC big up Tilapia in the JV RNS?" Surely if this JV is to be given an alternative he would play it down?

Why call it 'transformational' if we aren't likely to get it?

Transformational for someone else doesn't quite have the same ring to it.

"The Potential Acquisition is located in the Kouilou region of the Republic of the Congo in proximity of Pointe-Noire, the country's second largest city, and is also in the vicinity of Tilapia, the Company's recently acquired oil production asset with transformational production potential. "

This one is with shares, so what was the placing for?
I think there will be a second acquisition as well.

@RivieraRick, Do you want ketchup or brown sauce with your hat? :)

Yep, Thought that's what it would be.

In all fairness, once the top-drive was installed the rig did a pretty good job at the drilling C-37.

The unforeseen problem in that case was a failure of the hanger system that prevented the casing being cemented not a deficiency in the BD-260 drilling rig.

My money is on it being for another acquisition.

Just a joke, by the way.
You have done well to get in here early.

Aren't you worried about hitting the SIPP lifetime allowance sikulu?
The rate this is going you could be wishing you had it in an ISA :)

Actually I wouldn't be surprised if he got us more than the $5.3M but tied it to reaching production targets and gets deducted at source from SNPC's share of the profit. ie they get to pay off the debt with oil in the ground and only have to pay if we get it out of the ground for them. Everyone's a winner.

Though come to think of it, for this to work, we would actually have to process some oil. Hmmm, maybe let's not over complicate things. :)

@Highlander47 well my be guesstimate would be that negotiations for the licence renewal go right up to the wire as both sides try to get concessions out of the other.
I expect the licence to be renewed but AC to either right off some of the $5.3m or agree longer terms for the repayment etc..
@kelsbells the dispute got pretty nasty with AAOG but they were making payments in the end.

Anything over $200k + whatever AC has spent will see us break-even regardless of the licence renewal, but given the other opportunities AC is pursuing in the area I'd assume they are quite pleased to have got rid of AAOG and want to have us come and help them unlock their oil reserves for the benefit of all parties.

Only time will tell. DYOR GLA

Surely we paid £200k for the licence that expires next week AND the $5.3M the national oil company owed to AAOG? Seems like we have a pretty strong bargaining position to me.

For those who haven't been around long enough.
https://twitter.com/zenithenergyltd/status/921304861693575168?lang=en

Z21. Blowout, then shut off. Probably due to quality of existing well structure..Doesn't seem to be a shortage of oil there :)

Just 1 question about Azer before putting it totally on the back-burner;

Does anybody know, would drilling a new well next to Z21 be classed 'Exploration' or 'Rehabilitation'? :)

Still have the exploration rights in Azer Wolf..just the operational handed back to SOCAR.
Looks like we are more focused on Africa at the moment though. Still a nice to have in AZ for the future though. IMHO

"Under the terms of the conditional sale and purchase agreement ("SPA"), first announced to the market on April 20, 2020, signed between Zenith Energy Netherlands B.V. ("Zenith Netherlands"), a recently incorporated fully owned subsidiary of the Company, and KUFPEC (Tunisia) Limited ("Seller"), a 100% subsidiary of KUFPEC, KUFPEC's entitlement of oil produced from SLK since the date of signing of the SPA will belong to Zenith Netherlands.

It is expected that the production revenue generated since the date of signing of the SPA will be sufficient to fully satisfy the second and final Consideration payment to be made by the Company to the Seller for the Tunisian Acquisition by October 2020. Zenith does not therefore expect to raise additional capital to fund the Tunisian Acquisition."

Don't get me wrong, I'm not happy with the SP either and delivery of the previous work-overs has been dire.
I just think that the new strategy is a simpler strategy that plays to AC's strengths and that world events are creating an opportunity to potentially capitalise upon by buying producing assets on the cheap. He clearly has some ability in this area.

Deals are the way to go in the current Covid oil slump. Bargains to be had and AC is the man to get them. Others at it too, just look at I3E and Viaro/RRE deals for example.