Re: 2p incoming23 Dec 2020 14:41
The price back in February was 2.5p, that then collapsed due to the Covid 19 Pandemic. Most companies recovered fully, whereas Zenith was artificially reduced further due to accusations from Tom Winnifrith that something underhanded had taken place, now found to be completely untrue. (by the way I wouldn't be surprised if he's not sued) So the share price for quite some time has been in a state of limbo. The company now has an extremely valuable asset with overall negativity removed and a positive outlook. In terms of where the price should be, I will say the market has a tendency to never give what is expected or at the time you expect it, so this is a wait and see position. However, going back to February we had a Gas project in Italy that looks after itself financially and a single Azerbaijan project going nowhere and is no longer in operation. Comparing now from then we are a completely different company with the means for multifaceted advancement. Considering Tilapia is not a blind drill, we have to think about it as an oil asset, rather than an oil potential. it's already been drilled and oil flowed. It is just a matter of poking the thingy down the hole and counting your money a few days later. So we should estimate the company value on that basis. Based upon the fact that we already have our own rig and oil in the hole, I cannot see why the present price should be any less than what it was back in February - minimum 2.5p. If we add the Nigerian and the Tunisian licences - 3p should be on the cards. If the oil is, in six months time pumping at a rate of between 1000 and 5000 BOE per day, we should have a market cap of between $100m $250m based upon a multiple of 5 times production, our 56% stake, and our Tunisia production. This is all in my honest opinion only. DYOR
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