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I have never yet come across a deal whereby a large sum of money owing is carried within the deal of an expiring licence. Even more so from a contended sum. The most we can hope for is the 25 year licence paid for from that £5.3m imho. If we get anything more than the $2m licence expenses it will be a bonus. Only expect the bare minimum of what was stated in the Audited Accounts and you won't be disappointed.

"The acquisition of AAOG Congo has not only enabled Zenith to acquire an existing operator in the Republic of the Congo, but also US$5.3 million in receivables owed to AAOG Congo by Société Nationale des Pétroles du Congo ("SNPC"), the national oil company of the Republic of the Congo, which will be offset by a US$2 million signature bonus payable to the Republic of the Congo as part the application for a new licence."

Of course, the reassuring fact is the de-rampers are out in force, and that makes my investment remarkably more sound. MM's are attempting to prevent a dramatic buying spree when news erupts. It does also allude to the fact that positive news is in the wind.

Wow guys, well done, fully realise it's a Ltd company listed on the main market. Unfortunately, most of my investments are on AIM and automatically assume this was the same. Doesn't really change the price of fish, does it.

Rocklawn - my post somehow seems to bother you. As you have declined my request to explain yourself, You have given me the opportunity to offer even more of my insightful wisdom by explaining the reason why I jumped ship from BPC to here. It's all to do with risk, reward and timing. If I stayed with BPC I would have a 3 to 4 month wait to find out if oil was found, with odds against of 2 to 1. Whereas here with Zenith, I have an extraordinary opportunity in an immediate time frame, I think imminent is the correct word, to realise a substantial profit. I'm not saying all BPC shareholders should sell and buy Zenith, but it does seem obvious to me. Why wait for tomorrow when you can have your cake today. GLA DYOR

Takeyourbets - Iv'e been looking back at the posts over the last few months and much of what's said has nothing to do with share potential. It's pretty obvious who the goodies and the baddies are, they all seem to sing the same tune. The prime objective of any de-ramper is to divert attention away from the fundamental reason why you would buy a share by creating question marks. If people are unsure, they either sell or do nothing.

Rocklawn - as I understand it you traded £4088.00 yesterday but are asking questions that allure to a negative view and has nothing to do with my post. Can you explain first why you are asking these questions?.

Forgive me, I have been watching for a while and have noticed a distinct lack of enthusiasm on this board and a feeling that you guys don't really know how big this is.

There are a number of hurdles to overcome, but looking at the risk to reward, this has to be one of the best opportunities available on AIM. This time last year they were sitting at 2.7p. Stuck with an Azerbaijan loss making enterprise, no Tunisian prospect at 300 bpd and no Tilapia with a potential 5000 bpd. Of course, certain criterion has to be met in both, not least the Tilapia 25 year license. However, not to be deterred, the rewards are far too great to be ignored. A billion shares floating isn't great I must admit, but when you compare to lets say BPC, devalued multiple times with 4 billion shares on offer this doesn't seam so bad. Of course these are two different companies with vastly different prospects. However, when you look closely at the assets of each they are in fact quite similar. BPC since it's merger with Columbus now has assets in Suriname, Trinidad, Uruguay and the Bahamas. Zenith have Italy, Tunisia and Congo. BPC's daddy of all wells "Perseverance" with 2 billion barrels potential is obviously why it has a market cap of £99m. But if we take into account the risk factors it paints a completely different picture. Bear in mind Zenith has a market cap of only £3.6m, so weighing up the risk to reward Zenith should be a far riskier endeavour, but it's not. Interestingly, Both companies have their own rigs but BPC is spending £25m for someone else to drill the hole with a 30 to 35% chance of success. Zenith on the other hand can mobilise it's own rig with immediate effect with costs for crew only, to drill a hole that is 80% already complete with the potential for 5000 BPD. Now when we evaluate how much in value each company has in each of these wells we should first look at what happens afterwords. BPC is drilling in the middle of the ocean, and if successful, will plug that well, never to be used. This is a scouting mission only to evaluate the area. The next rig ship would require the same procedures and additional cost. Zenith, drilling on land can mobilise any number of rigs to drill multiple wells in quick succession pumping as much as 50,000 bpd. 5000 bpd relates to £64m per year, 50,000 bpd relates to £640m per year, and it all hinges on the 25 year licence. How cheap is cheap, at 0.5p it's a dream price with 2-4p if it gets the licence and 24p if it hits the honey pot.

The CEO has 57 million shares. not that much in cash at this price, but 5000 bpd would make a significant difference to his lot, plenty of incentive there. What we are hearing about his workflow, commitment and determination leads me to believe this man is in the right job at the right time. His determination clinched the deal with AAOG at a time when all others feared to travel and it will be his determination that gets the 25 year licence. GLA DYOR

Because in three years time it will have launched on the Nasdaq sitting at £2.00.

https://www.guerillainvesting.co.uk/2020/11/03/zenith-energy-update-binary-play/

Good to hear you are in for the right reasons.

Hi Frankie - I noticed this is your first post. It would be interesting to know why you bought in. Was it the potential Covid sales or the fundamentals of the company?

Yes, your right P3t3r. Didn't pick up on that and the timescale for the 250 machines was 3 years (I think) not one year.

I meant to say end of next year, not this year.

Coggins - "I can see no positive catalyst here."

Are you sure about that? If I asked you the question - Do you really think this company will rot and Lyn Rees will burn in hell?. Of course not. Where do you see this company this time next year? 50P, at least. When will we see the 20,000 running at full capacity? In January. Do you think we can expect 30,000 by March? Yes. Will we have an update on the IONA nx in December? yes. Will we have an update on Covid in December? Yes. Do you think the Molecular Genomics side of the business will expand even further than the 75% it has already expanded? Yes. How do you think this will take place? In August this year we bought Coastal Genomics. It's patented machines had the ability to multiply DNA sample preparation for IONA nx and Covid-19 testing capacity. It was said the NIPT production was transformed using only 3 machines. They intend to bring online 250 machines by the end of the year. Do you think we will achieve Break-even by December? Yes. Do I think the market will hit 5000 in the next few days? Certainly possible, but the market usually likes to hold something in hand to hit you with when you least expect it. So I don't think it will drop much further. When do I think the price will rebound? As soon as the market settles, this will rise rapidly.

Coggins - you seem to be locked into this YGEN is bad syndrome that is leaving you feeling your in a box with no windows. Forget it, coincidences happen and this is one of them. Twix has been bleating on about another crash on the horizon and I have watched closely at that very thing for the last two months. All credit to him, he may not have seen the crash in the way it has unfolded but a crash it is. The FTSE 100 in May this year fell to 4995, it's lowest point, only to rally over the following months to 6500. We have just witnessed a fall of very nearly 20% and it could lose another 10% in the short term to reach those May low's.

Did the recent TU damage our share price, yes, but no where near the damage the FTSE has inflicted. The TU produced a doubling effect. First it created an air of negativity and doubt which was then carried alongside and into the FTSE down slide. There is nothing wrong with this company, get it out of your head. Your angry because you have just been stung by something that was staring all of us in the face and repeatedly voiced through these threads.

Now lets get to the juicy bits. Now our God, Mr Rees, has taken some stick over the last few days for not letting on about the drop in International sales, which is in reality the only thing we have a beef about. I remember at some point over the last six months someone from the company saying or writing - border restrictions were effecting product access worldwide. Now I haven't got time to search through god knows how many presentations and RNS's, so you will have to rely upon whats left of my memory, or search it out yourself. The point I'm making is that Mr Rees could have openly stated that we were directly effected, but it was already out there. We just sometimes need to see the wood for the trees.

The Research Use Only" version of Clarigene™ SARS-CoV-2 first came on to the scene in June 2020 and could only be distributed to the professional services market. Open market distribution only came when Clarigene™ SARS-CoV-2 was given the full clearance and CE mark on 3rd August. Figures announced today are up to the end of September. That's two months trading for a new product that has already reached full capacity (10,000), not bad really I'm sure you will agree. Preparation and development for 20,000 per month expanded capacity will, in my view, take a little longer to establish as we cannot be exactly sure how this will be implemented. I can only assume the new CQC'd building would play some role bringing full capacity on stream by January as stated.

It has been widely acknowledged in the media that many products and services including major operations have been put on hold giving presedence to Covid care. In the wake of this fundamental change our core products are still expanding at the same rate as previous years - UK up 40%, Europe 80%, fulfilling market expectations (no slowing there). This expansion into Europe is carried against the so called headwind of underused products. This sees the expansion as an even more powerful force. However, many international markets including US and Japan also restricting standard use of care, have in addition prevented any sales penetration due to Covid. So if they can't get their products through, it's certainly not due to the companies failure, product fault or some financial impediment. The company is without doubt financially sound, so they don't need to push any harder on the core business front, just need to maintain Covid expansion. I fully expect the speedier tests now coming onto market will eventually have a dramatic impact on the control of Covid spread regardless of any Vaccine. This will in turn allow countries to lift restrictions in all areas allowing us open and rapid penetration. The only thing investors need to do now is wait for the full Covid update in December that should give a full rate of expansion and may still include Break-even. It's important to realise product segments like Molecular Genetics, already 75% up on last year will produce additional profit that will help to break down that £2.4m required to achieve Break-even. What we hope is that Covid sales and IONA nx expansion will provide the balance. All looks good to me.

Fair point.

Flipper - why do you think a new broker rating will give anything other than what has already been forecast for the last 6 months including the additional Covid sales?

Tried to think of something that could brighten our grey day and thought of the sweepstake they recently had on the BPC thread. What price BPC would be when it spuds. Obviously never had any meaningful purpose but it did brighten spirits. My two pennies worth is when will we be floated on the NASDAQ?. With the now multitude of money making enterprises coming into play over the next 6 months, i would like to start the ball rolling with October next year. Any views?

P3t3r - I thought the sole purpose/responsibility of the directors of a PLC is to safeguard shareholder interests and increase shareholder value where possible. That is the job they are paid to do.

Cooper - I think I sometimes jump too quick and become too defensive when remarks are made that are merely views and not criticism. The reality is we are all singing from the same hymn sheet.

Themorg - again nothing directed at you, been in lock-down too long.

Where on earth did anyone get the idea I thought the £500,000 was misspent. I just said they keep spending. Now believe it or not in my view the £500,000 contributes considerably to building the foundation for future growth. However, the additional spending delays that crucial Break-even point. So you way up, do you want your cake now or later.

The management aren't bothered at the present moment whether the price is in the 20's or 30's. They have no need for raising cash and none I would assume, have plans to sell any time soon. The problem is for us long term holders who would in all honesty just like to sit on a price that holds a significant profit after so long waiting, then sit back and comfortably watch there investment rise with no risk to their hard earned.