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Don't forget the $5.7 million owed by the SNPC so in total we are looking at nearly $10 million on top of the existing market cap before you even take into account the value of the licenses themselves. This is going to be massive.
Another cracking deal by AC. 210 bopd and $1.25 million in cash. The man knows a bargain when he sees one! So when the other Tunisia assets come on line then this should leave us with almost 500bopd from Tunisia plus $3-4 million in cash from the value of the oil stored.
AGEOS - yes I remember that. It looks good for Zenith in Congo but as I said in my last post I do not think that we will get any progress there until the election result is known which I guess will be on March 22nd so not long to wait.
Now I have read what you posted on the Nigerian marginal fields yesterday it seems like the COngo would be a better place for us to acquire fields than Nigeria though. Since the minimum signature bonus in Nigeria is £5 million then for us to get any worthwhile stake of 20% or more is going to cost us at least $1 million which will need to be paid in 45 days. Seems tight to me and so I would prefer to stay out of Nigeria to avoid stretching ourselves too thin. What do you think?
Rimsha – I agree it would be good to have an update from the company. My opinion of what you have raised is:
Tilaipail - we are going to have to wait another 11 days until after the election for any news on Tilapia.
Tunisia- AC told us by twitter that he is going to buy another Tunisian asset and then raised the money to do so. With all of the rumours doing the rounds on this I would expect news soon. I think that for SEK we have to wait until the Tunisian political situation sorts out but it would be nice to have some news on ths.
Nigeria – no guesses on this. I would love an update but having read what has been put up yesterday I am slightly concerned that getting even 20% of a Nigerian asset would cost us £1 million cash in signature bonus so it may over-stretch us. After we get the SEK money it would be great but I guess we have to trust AC on this
Rig status – didn’t they say that they would only send the rig after they have Tilapia licenses ratified?
Twitter/comms/pr – not sure what you mean here. I think that this is all quite good.
I'm losing track now - which marginal fields are you talking about? In what country?
The existing deals that Zenith have done with Tunisia for Sidi El Kilani are for producing fields so I would be surprised if any new Tunisia deals were for exploration as I think that the Tunisia focus is on delivering cashflow. However, it is worth remembering that we have two rigs and only one of them will be any use in Tilapia so some exploration upside in Tunisia may not be the worst thing in the world anyway. As I keep saying the key thing is to get the Sidi El Kilani deal over the line as that will be worth several million dollars straight into the Zenith bank account.
Mudstud and mls678 - you appear to be very keen on talking about whether or not other people have bought shares here today. Perhaps you would be kind enough to let the rest of us know if either of you actually own shares in Zenith. You have always refused to answer this question in the past which makes me very suspicious of your motives here.
he is clearly trying to acquire a new asset in Tunisia at the moment as we have been told from the RNS from 24th February where they got money for acquisitions and the tweet from just before where AC said that he was looking at assets in Tunisia.
I think that you are overstating the importance of 31st March though. This may be the year end but the really important date is when they have to publish the accounts to the markets which I think is September 30th. Anything major that is done after 31st March still has to be mentioned in the annual report and that is the thing that will have an influence on credit etc.
flingaas, thanks for clearing this up. So it is not an acquisition by a pension fund but akin to TD Waterhouse announcing that they have a 5% stake in a company - but in effect they are just acting as nominees for many hundreds or thousands of small shareholders.
Still, this is a good sign of investment interest nontheless. Hopefully actual pension funds will follow later this year.
Latest RNS shows that we have Nordnet AB on board with 5.1% of the stock. It looks to me like they are a pensions fund from the bit in the name box that says "Nordnet Pensionsförsäkring AB 516406-0286 (SE)AB 516406-0286 (SE)" but I am not sure.
This feels to me like we are picking up momentum from institutional investors in Norway and this will be fantastic news if we are. Do any of our Norweigan posters know who Nordnet AB or Nordnet Pensionsförsäkring are so we can get clarity?
GosiaS - on what basis are you worried about debt funding sending the share price down? From everything I can see - the good terms and the use of the money to buy additional assets it should send the share price up significantly.
There are an awful lot of derampers on this board who like to do down the company and AC at any opportunity. They all have a terrible track record of predictions and investing and often have trouble telling the difference between the various different entities that Zenith deal with. They also never answer the question of if they are invested or not. i wonder why that is?
Mudstud - did you really post: "Looks like a pump and dump to me. The silencee is from the posters all quiet now that we're saying there would be news before Xmas. Best to listen to the doubters who have seen this before." on the 23rd December 2020? That was the day before they announced that they had been selected as preferred bidder for Tilapia II.
You could not have picked a wore time to make that gloating comment. No wonder you lose money on your investments, your timing is awful.
I have a question for you by the way - are you still invested here?
The message could not be clearer. AC is back in the Congo again and this time he is talking to the SNPC about the money owed AND negotiating new licenses! Both of these were mentions in his interview with Stefania and he said that he was sure the SNPC money would be repaid and also that in the Congo Zenith were discussing our second and possibly third and fourth assets. It looks like he is delivering on both of these statements big-time.
Florida - I got the numbers from one of Market Gunslinger's posts at the end of last year. I will see if I can dig out the details of exactly what one it was later on tonight.
For all of the new posters who are coming here - firstly welcome to the site. You are joining Zenith at a massively exciting time for the company. Secondly, please note that like most boards on this site you will find some hard-core derampers here for whom the company can do no right. It is best to ignore them, but I am sure you know this already.
Key points to know about Zenith Energy
1. Zenith are shortly to be receive a 25 year license for Tilapia in the Congo.
2. Zenith have their own rig to drill their wells with.
3. Zenith are owed $5.7 million by the Congolese government’s national oil company.
4. Zenith are about to be granted a license for their purchase of two Tunisian assets and this comes with backdated oil revenues of up to $2 million.
5. Zenith are expecting a license in Nigeria from the marginal oil fields bid there
6. Zenith have started a joint venture with Fleet Oil & Gas who are owned by the former Egyptian Petroleum Minister, Mahmoud Latif Amer. They are looking at acquisition opportunities together (presumably in Egypt).
Massive news! He says that Zenith really impressed the Congo delegation and are now going to be treated as a preferred bidder for future license rounds in the Congo. https://www.guerillainvesting.co.uk/2021/01/25/zenith-energy-congo-update/
Yes, great find TYB.
That is certainly a hint that Zenith have been successful in the Nigerian marginal fields application. Add in the Tunisia news and we are ready to rock and roll.
Gary, you are absolutely correct, they cannot sell the oil twice so anything sold before now will be at the lower oil prices and anything from now on will be higher. I wonder how often they sell though, monthly?
The price of oil was only $50 when it was calculated that the money generated from Tunisia was around $2million, so this should boost it up by another 10% to $2.2 million coming in as soon as Tunisia is signed off.