Stephan Bernstein, CEO of GreenRoc, details the PFS results for the new graphite processing plant. Watch the video here.
So Zenith are now fully funded for the well intervention from El Bibane and the workover at Ezzaouia. From what they have said then these should deliver an additional 800 bopd to the company once completed and the revenue that is generated from this work should pay back the loan. Obviously there will be some dilution for the first month or two while they get the workover done but this should only be E500k max and then we should to see the following repayments funded out of oil sales.
It is not just posts that are negative about the company. My post earlier that mentioned Alex MacDonald the former director of AAOG who has been trying (and failing) for years to take over Tilapia was also removed.
First institutional investor on board and the warrants are basically at 2.15 and 2.8 so they mush have faith that we are going to hear something soon. I wonder if this is linked to the fact that AC is currently in Africa and said that we were likely to hear about Tilapia soon?
I have just watched the video about the aerial view of El Bibane, Robbana and Ezzaouia concessions. They are massive and much more developed and high-tech than I was imagining. Candax must have spent a fortune on them over the years and because they are going bust we have got them for next to nothing. This is a really serious upgrade to Zenith's portfolio. We are playing in a different league now. Well done AC!
Ageos – is the EL Bibane field quite a big operation then? Personally I would like to get this going as quickly as possible even if it is offshore . $3.5 million is not much money to spend to get an increase of 500bopd and with oil at $60 a barrel it would pay for itself after less than 120 days production. With oil at $70 it would only take 100 days. Exciting times for Zenith.
Florida - don't forget the Sidi El Kilani money from the stored oil. That must be reaching a value of about $4 million or more on by now. I reckon that would cover the El Bibane offshore drill on its own.
Brilliant news! We have two 100% owned producing assets that are already producing 100 bopd and have the potential to produce an additional 700 after work is done meaning that these two assets will produce 800bopd on their own. Also between the two of them there is 36 million barrels of oil as contingent reserves. That is worth a lot of money.
Another 125 barrels of oil a day net to Zenith with the potential for another 500-600 bopd after a workover and all for $200,000. I would say that this is better than good news. I would say that it is another spectacular deal by AC.
If it doesn't involve stretching us too thin on finances or meaning that we have to issue more shares then I am all for further acquisitions. I think that it may be better that we are a junior 12.5% partner like fakevenues suggests rather than having to run operations in three countries. As you say though, AC is best placed to decide and if he takes it on then he clearly thinks that it will be beneficial to shareholders.
It is not just the signature bonuses that we will have to pay though, we will then have a work program that we will need to carry out in order to keep the license and this is likely to cost millions more - on top of the money we'll need to develop Tilapia. I am not completely against getting the marginal fields because we can potentially fund Tilapia out of the SNPC money and Tunisia out of the stored oil money, but any marginal field exploration or production activities will require additional funds that need to be raised from somewhere. AC has proved that he can always find deals and so we may be better to focus our attention and financial firepower on two countries for the moment as three assets in three countries may stretch us too thin just now.
Since we have jus acquired another asset in Tunisia I reckon that it is safe to say that we are no longer interested in the Nigerian marginal fields, especially at $5million signature bonus minimum. It's probably a good thing too. Operating in a third territory at this stage in Zenith's development would stretch the company and its cash resources far to thin IMO.
Recent history shows us that when AC says something like "we intend to capitalise on certain additional possible acquisition opportunities that may present themselves in the near-term" in an RNS then it usually means that he is already in the middle of negotiating for another asset already. Zenith look like they are already building a significant production base in Tunisia so it should not surprise any of us if we add to it in the near future. We have only spent $150,000 in cash of the 1.5 million Euros that we have available for acquisitions...
BOOM BOOM coming?
$400k a month is a seriously large amount of money as cashflow. Obviously we have the costs coming off the top of that but even if the cost is $30 per barrel then we will still be making almost $225,000 per month from this one well and we still have a significant development/exploration upside to come.
BOOM!
We should expect the election result later this week and that is the first stage. I think that it will take time for Tilapia to be approved as they need to form the government first but the timescales posted by MG seem pretty on point to me. Should be a boost later this week anyway when the election result comes in.
So Ezik you are saying that the company is lying in their RNS and they are not actually going to start any drilling activities right?
Well whoever just exercised those warrants in Norway has just paid out well over £200k at a 20% premium to todays price. They are certainly confident in the company's future. I'd definitely prefer to follow the trail of someone who can drop serious money into their investments rather than Mudstud and his useless tips. The warrant money goes straight into the company coffers too so more funds in place to tide us over until we can sell the £1m worth of Tunisia oil.
65,000 barrels of oil at $68 is $4,420,000 in cash waiting for Zenith on approval.
Looks like the farmyard gang are out in force on the boards this morning. Old MacDonald's farm must be looking pretty empty today as all of the stupid cows are on here! I love that fact that they are now blaming AC for the political situation in Tunisia and for things stopping for the election in Congo. Old AC must be a very powerful man in their eyes. How much is 65,000 barrels of oil worth? More than Old MacDonald and his farm, that's for sure.
Even if the operating costs are $35 per barrel then this is still $2.5 million per year. Why, how much do you think that the operating costs can be? AC is not going to make the same mistake as was done in Azerbaijan. That is what I like about him, he learns his lesson and changes his plan accordingly. If he keeps bringing in deals like this then he deserves his bonus.
I can see why AC took the financing to make this purchase now. 210 bopd with easy export to the international markets. How high can this acquisition take us? Well 210 bopd at $69 per barrel is worth over $5 million per year so my betting is pretty high.