Member Info for EbbsandFlows

"We have grounds for considerable optimism as we look towards 2024, which is set to be extremely active and characterised by substantial news flow. In particular, we continue to prepare for the exciting State 36-2R well redrill, for which we believe substantially all costs will be covered through insurance, and after which we hope to utilise the same rig for a second well. In addition to further delineating the extent of the Paradox project with the drill bit, we also look forward to delivering first regular cash flows from the Paradox project as we progress from exploration to production in the area."

With what occurred in 2024, Colins credibility is shot to pieces. He knows this and this is why he now hides.

3K short of 6million on admin expenses!!!!

That’s $16,438 every single day of the year on admin expenses!!

It’s OK, there probably ordering the sides when they are going out for lunch.

3K

Just like it was in 2021, 2022, 2023 and 2024.

The non ops were supposed to generate the funds to deliver the drilling at Paradox. They generate funds all these years but here we are, waiting and waiting for someone to put in £7m to drill.

What do you think is going on?

28 February 2024 we are told

Received payment of US$116K for a 1,000-tonne bulk sample

But somehow in the signed of results we are told this.

Revenue The Group generated revenue of £64,218 (2023: £nil) through two bulk sample orders for coking coal.

Question 1 – did we sell 1 or 2 bulk samples to the company that just disappeared after taking them?

Question 2 – How does $116k US turn into just £64,218 the dollar has shot up this year against sterling but even if you converted today that would equal £92,327. So, what happened to the other £30k or did someone just pocket that.

Lots of snippets in the document once you get over all the cut and paste.

Auditors not given full disclosure / everything they have asked for…..

Only signed of as a going concern as long as the £4m owing in loans are not all called in at the same time, if they are we are toast.

I think I find mud clearer!

So, the main subsidiary is err Rose Petroleum which is a two person company run by Colin and Chris!

And every part of Zephry e.g. Salt Wash, Williston etc is its own separate LLC entity, so subsidiaries, which these two with 100% ownership interest and control over.

They then loan money (Rose Petroleum) to these Zephry subsidiaries at 1% above the bank of England based rate.

Does this all have a bit of a pong to it?

Exactly my thinking as well.

Then on Page 25 of the company report you get this.

“During the year ended 31 December 2023, the Group generated revenue of US$25.2 million (2022: US$41.1 million) and reported a gross profit of US$7.2 million (2022: US$22.4 million), which includes a gain of US$0.4 million (2022: US$1.8 million) in respect of the Group’s hedging programme. Administrative expenses for the year were US$6 million (2022: US$4.8 million).”

In summary we made $7.2m in profit but then manged to spend $6m on administrative expenses!

Instead of breaking this down so we can see where our money has gone, we get this waffle.

“The increase from the 2022 financial year highlights the expansion of the Group’s operational footprint to provide it with the capacity and capability to develop, manage and grow its operated and non-operated asset portfolios.”

We employ less than 10 people!

But we also then get this.

“The Group reports foreign exchange losses of US$2.8 million for the year (2022: gain of US$6.1 million) which is predominantly in respect of unrealised losses on the restatement of intercompany loans between the Company and its subsidiaries.”

I don’t understand this and hoping someone can explain? This reads like we have intercompany loans and subsidiaries. Can anyone tell me who these subsidiaries are and who owns them and what is loaned between them?

Thanks

Publication of the 2024 Annual Report

Moore Kingston Smith LLP ("MKS") was appointed as auditor to the Company in July 2024 and is currently finalising the 2024 Annual Report. The latest advice from MKS is the report will be ready for publication in approximately two weeks. Once published the Company will arrange to lift the temporary suspension from trading on the London Stock Exchange so that the shares may commence trading again.

If you spend any time on this site, you will realise that so many of these boards are unpleasant places, each company has its cheerleaders who patrol and police the boards and make them very toxic.

This board has always been different. It’s been very civil and good mannered and place where people with knowledge and experience off oil exploration have openly shared their views in detail and with balance.

But I think the vast majority of us have now got annoyed with progress.

Yes, I understand the argument that fundamentally the bigger picture hasn’t changed, the oil is still there and at some point, in the future it “should” come good.

But as the years have dragged on more and more questions become unanswered.

We are an oil exploration and production company that finds it impossible to produce its own oil.

What dose Colins working day looks like? Probably works one day a week and starts late and finishes early. So why rush and change when you and trousering nearly £1m a year.

How on earth does he get a perfroance nased bonuses with what he's actuall achived this year?

he CEO of Zephyr Energy, Colin Harrington, has an annual compensation package of approximately $822,000 as of the latest reports. This includes a combination of salary and performance-based bonuses, with a significant portion tied to stock options and other incentives

Thanks for taking the time to write that up. Really appreaciate it.

First to admit I have no experience in drill for oil. So, hoping one of the very experience oil workers on this site can help out.

Where has the oil gone?

We drill two years ago, the pressure is that great it blows the doors off, the safety equipment fails, oil flows like a fountain for days and days and then we get back in control of whats occurring.

Two years later, we drill again, get told we are only a matter of feet away from the original strike point and BOOM. No, actually not BOOM instead we get told, to improve the production rates from the well we now need to go along for 5,000 feet and this will help with recovering the oil.

I don’t get this, where has the oil gone, that was so powerful and uncontrollable on the first attempt?

Any insight gratefully received.

Good job oil is millions of years old and doesn’t have a best before date at the speed this company is progressing.

Early days.... that made me smile and laugh

19 Nov 2020 they started drilling - 1,460 days later we still have no active wells and no income

Early days, maybe for the first 18 months but four years it stretching it.

These were the old auditors – experts in mining fraud detection

https://www.crowe.com/uk/insights/fraud-and-corruption-mining

But the board replaced them, I wonder why for these.

https://mooreks.co.uk/sectors/entrepreneurial-businesses/energy-mining-and-renewables/

If it was the other way round I would be smiling now I am not.

How on earth can you employ a new company (auditors) that can not work to a deadline? Or even provide one.

Why change auditors – unless the old ones walked due to what they’ve seen / were not happy to sign off and approve.

Can this board of directors get any more incompetent / doggy

Agree and they’ve had a whole year of waiting to come up with a range of possible scenarios and solutions.

Worth a read https://blackrockmidstream.com/blog/4-reasons-why-the-midstream-part-of-oil-and-gas-is-so-important-hdmz7-pzj2s-h5mh5

Why have they changed auditors?

Why have they then employed the services of a company that are incapable of meeting the required deadline to keep the shares trading?

What on earth does, the time of year have to do with any of this?

Why did the last auditors walk, do they know something we don’t?

Well lets just hope that they are actual people signing up for the accounts rather than bots.

I really hope they are as I put before, have money in here and have for a long time.