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The last oil sold was on the 8th July. I think someone established that we can expect two ship loads per year. The 8th December should be the six month period. If ships only move when fully loaded it won't be possible to give an exact date. So, anytime soon.

Looking at our chances of getting anything out of this situation, I would say pretty good. More so, if we are fortunate, it will be without litigation attached. There is much to look forward to., The other half of the SLK 45% from KUFPEC, the awaited new Tunisian deal, Tilapia, the $5m from the next batch of oil sales and not forgetting the legal case against SNP coming up soon. The next few weeks will, I have no doubt, show up a few more surprises. In the mean time we can go about our daily business without any risk to us and wait for the opportunities to emerge. GL to everyone and a Happy New Year. Don't forget, this is all IMHO, just guessing folks. DYOR

I was going over the recent Zoom call by Osamede Okhomina the CEO of ADME, and it struck me that his lack of clarity over many points raised, left me with the impression of desperation. He, at certain points began to lose control, resorting to the usual back against the wall ''WOKE'' term of ''oh I am insulted or the usual offended'' when questions were raised that he clearly did not want to answer. He even suggested at one point that there was some kind of conspiracy by one questioner, against him or ADM and that the questions were working from some kind of agenda. It was truly frightening to realise that someone like this could be at the helm of a PLC. What struck me the most was an inadvertent admission - let me give you the whole thing - Question: ''Why is it that you were informed by NHNL that they declined participation in the KONH proposal on August 17 that shareholders were not notified of this action'' Answer: ''to call it an action is a strong word, in commerce people tend to want to squeeze you and shake you down'', ''this is just another form of arm-twisting activity which we had become accustomed to, so we didn't really take it that seriously''. Now forgive me if I'm wrong but in order to initiate a shakedown you have to have some kind of leverage or you are bluffing. If the shakedown assumption by OO was correct, NHNL in there mind, had leverage, by which was contained in the contract and which was confirmed by OO because that is what he believed. If he confirmed this was some sort of shakedown, he is also confirming the shakedown from his point of view existed and leverage existed. You can't think it is a bluff, then take out an injunction claiming the exact opposite. This is a blatant contradiction.

The resulting position is, does ADM have any credibility regarding their claim of ownership NW OML 141. Quite frankly no. Tom Winnifrith doesn't think so either. He recently called him a liar and is now in possession of the email between OO and Jennings declaring OO would resign.

Getting back to us for a moment. It surely couldn't have gone unnoticed that we have heard absolutely nothing for the past two months regarding the development of any of our interests anywhere other than Nigeria, apart from our already expected confirmation of the CNPC 22.5% stake in the SLK field. Especially when Rob- 3 was due to follow on immediately from Rob- 1 and our rigs are poised and ready in Tunisia for use in Ezzauia. It just seems AC is fully committed and waiting for the right moment to make his move.

Continued...

Now the litigation itself does not prove anything. They could have shown the judge a contract of sort that turned out to be subject to certain criterion/payments that the Judge was not made ware of. Without seeing both sides of the argument the judge has no choice but to allow the case to go ahead. From ADM's point of view, it gives them time to prevent the deal with Zenith going through, time to enhance (maybe) there financial position and also time to give them a bargaining position that never existed prior to litigation.

An interesting point to recognise was they set the date for General Meeting for the 17th January, two days after Zeniths ''Option Agreement'' ends. Crucial timing imv. They know full well that Zenith have to either commit to the deal or pull out before the GM that decides the fate of the BOD. This is a last stab imv by ADM to prevent the NHNL/ZEN deal. Unfortunately for them, the easy solution is a verbal consensus between NHNL and ZEN to extend the time period of the ''Agreement''.

Where does this leave us. As I said before AC is looking at this and in reality, all he has to do is wait. Wait for the point at which ADM's resources are completely depleted and have only one option left, to negotiate their position at a fire-sale price.

Align Research at least have an alternative rather than just trying to ride out the impending and inevitable demise of the company. This is how I think they will do it. They would wipe the existing board and appoint Richard Jennings as CEO. Then administer a full financial restructuring incorporating a new company name. This would involve a consolidation of shares (maybe ten times) at a new value much less than the present. Which means the present shareholders would lose quite a bit. However, with the newly appointed board in place, operating under a deferred payment basis (in other words they don't get paid unless the share price reaches a certain point higher), and the influx of an additional £1m injection from Align Research (of which they have already alluded to), and with the bonus of a marginally lower number of shares issued to the new company, and the share bonus offered to the existing shareholders of ADM in the form of a 10% discount, that would at least give them all a fighting chance.

Continued...

Totally agree MG. I have a few idea's I would like to throw at you later when I get five minutes to myself. Just had a Hernia Laparoscopy a few days a go and feeling a bit creaky so bare with me.

My thoughts exactly. SNPC's financials were improving back in September due to a sustained higher oil price, and the IMF (International Monetary Fund) were considering a bail out of sorts for the Congo Government around the same time. If linked as stated, these two factors should help towards us acquiring our 25 year licence.

AGEOS - what do you make of the following paragraph taken from the Align Research company Note, in particular the last sentence.

"AAOG Congo receivable: Another aspect of the Congo relationship is the
US$5.7m receivable owing to Zenith’s local subsidiary AAOG Congo by the
national oil company, SNPC. This is a very significant sum for Zenith and would
be sufficient to more than cover the cost of a Tilapia appraisal well. The timing
of an agreement concerning the receivable is also highly uncertain. We suspect
that the issue of the receivable and a Tilapia licence may ultimately be linked."

I hear Align will be making a statement on the weekend according to ADM thread.

Nice one MG.

Something struck me in ADM's recent RNS. "it was, and remains, ADM's and KONH's preference to seek a resolution with NHNL without the intervention of the Courts.". ADM explains that it has attempted a resolution with NHNL in recent months with no success, but clearly leaves the door firmly open to talk. Now we know that ADM was not in a financially secure position before any mention of courts, so they must really be pushing the boat out, this one with quite a few holes in it, in order to get through the courthouse doors. Ironically, TW just confirmed what I already had in mind by stating they have only enough to survive into February. So where does this leave them. Surely cannot survive for what will be at least a year, not only without any money but also it seems, according to TW, without the present board of directors. This is exactly the position that our wondrously expert negotiating CEO is good at. It has to be in ADM's interest to negotiate not only with NHNL but anyone who can get the ball rolling on this concession. ADM could end up negotiating themselves out of a distressed position into a three or four way split. Whatever happens, without litigation the road is clear to develop NW OML-141. For us, three way $1,300 bpd, four way $1,000 bpd, so definitely worth getting into. This may not be dead yet. if it is still alive it is in a far better state for us to take advantage of.

Continued -

Dear Andrea Cattaneo,

Congratulations on your recent “Option Agreement” for the NW OML 141 concession. I have to say I am pleased that a deal of sort has been struck, however, the terms of the deal and the circumstances that surround it have left me, let me say, slightly uncomfortable. The recent ADM RNS 29th November, reinforces ADM’s claim with regards to 70% indirect ownership of Noble Hill Network/OML 141, through a 51% ownership of KOHN Ltd. I feel sure that your due diligence in the lead up to the Option Agreement was thorough, however, I do have some reservations regarding the legitimacy of ownership, more so potential litigation regarding such ownership in the future. Zenith Energy has in the last year made tremendous progress and as time moves on the risk characteristic of the company becomes less and less. The Option Agreement with a price tag of $20m and a contested point of ownership has certainly brought the company back into a high risk position. As an investor with what now is a substantial sum invested, I find myself financially attached to a wildcat oil company with a potential debt of $20m that has no means to repay such a sum if something went wrong. This is not what I originally invested into. The plan you set out to expand your already profit making, owned assets was a sure way of moving the company forward with a low element of risk. It is my hope that you can waylay my instinctive feelings of impending doom by reassuring me that if you were to go ahead with the Option Agreement on the 15th January 2022 ownership would not be contested. More to the point, neither would Noble Hills ownership position be contested. Lets be frank, if Noble Hill and ADM became legally combative Zenith would undoubtedly be drawn in, if not stifled, unable to progress the concession. Let me say I am fully experienced in large sums of money being tied up because of litigation. It ties your hands and financially breaks your back. I have been in business and invested in the markets for more than forty years and this deal, in this position, wreaks of litigation. Please put my mind at ease. Best regards.

Please see questions below regarding “Options Agreement”.

Question 1
How would we repay the $20m if you failed to recover oil on the first three wells?

Question 2
Are you absolutely sure that our ownership position of NW OML 141 would not be contested?

Question 3
Are you absolutely sure that Noble Hill Networks 100% ownership position of NW OML 141 would not be contested?

Question 4
Are you absolutely sure that KOHN or ADM Energy have no ownership rights to NW OML 141 and would not contest this position?

Yes, Upside, I think we all agree this matter is now reaching a point of closure, I hope. The only worry now is whether we have submitted any advance payments to Noble Hill, although this is something I very much doubt. I wouldn't normally submit private letters to this thread, however, due to the fact that legal action has been taken against Noble Hill Network preventing this "Option Agreement" from going ahead, and having not received any reply to it. I feel it's an appropriate time to do so.

Please see the letter below I sent to AC on the 30th November 2021 regarding my own feelings on the potential "Option Agreement".

Continued -

AGEOS - I'm sure that was helpful to Nicetomechu as much as it was to all of us, thank you for that. However, you failed to elevate his nervous apprehension regarding the whole situation. The percentage chances of success for the first well can be assessed on the basis of some of what you have explained, the chance still ends up a 35% to 50% risk regardless how you spin it. Secondly, and in addition, the threat of litigation is a predominant factor. ADM's claim needs to be curtailed and denounced clearly as fraudulent before Nicetomechus and I can fully relax on this point. Contentious ownership requires swift precise counter measures that are defined in the public realm long before any ""Option"" agreement takes place. To become embroiled in a tit for tat litigation process will tie all three companies up for years and will be extremely damaging to all concerned. If he takes up this ''Option'' he must be absolutely 100 sure that ADM have no case. My fear at the moment is that ADM are the good guys and Noble Hill is the real Arthur Daley.

That's the one. Didn't see the Twitter post myself but did see it pasted to the LSE ADME thread. Curios how you came across it AGEOS seeing that it had disappeared when I looked. Not casting aspersions on you but also curios why is the time of the post changed and December in the date is lower case?

My wild guess here is they got wind it will be suspended on Monday.

We have already had some good news today. Someone posted a tweet from Align Research, stated by Spikeyj that they ''Disavowed all their previous statements about ADME'' as he put it. In other words they washed their hands of the company. Someone obviously said the wrong thing at the wrong time and in the wrong place. Enough so to have it taken down from Twitter and Spikeyj's post removed from LSE.

From our point of view it reinforces the suggestion that ADME's management have misjudged their position with Noble Hill.

Because we can't guarantee when the oil will be sold. Accrued barrels are shipped to the refineries with only two ship loads a year. We are getting close to the next shipment but cannot yet know for sure when this will be.

Mis678 - it's not the news announcement itself, it's the content of the news that triggers price growth. Although we have consistently produced positive bulletins over the last year nothing has been seen as a game changer. Also, more importantly, if you take into account the shares added to our balance sheet, from 900,000 this time last year to what will be on the 10th December 1764m. That's virtually double what it was. In terms of price, we would have been nearer to 2p but for the devaluation. More to the point we would have been nearer to 5p if Covid hadn't crashed the price and Tom Winnifrith hadn't destroyed the companies credibility, making it harder to recover and more costly to place more shares. The company has done nothing wrong, circumstances have limited the companies ability to put into action key elements of the foundation that you now see before us. AC has in my view done an incredible job in getting the company back on it's feet. Most of that list of future events in my previous post would not have existed but for the CEO's own personal endeavours. You are seeing this all wrong, you see this as the end game, this is just the beginning.

The point is where are we going and what are we looking for in the near term. His strategy seems to be correct as far as I see it. He's built a firm foundation of now profitable concessions in Tunisia and Italy, with one half of the SLK already in hand and a firm expectation of KUFPEC joining the club before the end of the year.

Tilapia, although clearly a certainty in my view, has no way to determine when this certainty will jump the last fence. With that in mind, the Nigerian option would most certainly speed things up. It may not be as profitable as Tilapia in the long term, however, 1800 barrels on the first well net to Zenith, then multiples of, in terms of fresh wells, would seriously do wonders for the company treasury. He is at present sitting on quite a decent chunk of money from his latest market take ups, some of which was due for the workover of Rob- 3. What's strange is that this should have followed on immediately after Rob-1, so what's the hold up? I think he's waiting for the results of the Due Diligence on OML-141. If he goes ahead with the Nigerian Option on the 15th January he will know exactly what the final cost, the cost of the new Tunisian concession, the cost of the final piece of SLK/ KUFPEC deal, and where to place his rigs. It is important to remember there is only a year left on the licences to carry out work on SLK, so he needs to move quickly on these concessions.

It's a shame he chose a Nigerian concession that is potentially contested, this does incorporate a higher element of risk. However, if his DD is up to scratch and he leaves no stone unturned, not so much with ADM, more so where Noble Hill are concerned, the reward could be company changing.

Things to look forward to -

KUFPEC agreement.
New Tunisian concession.
Tilapia.
OML-141
Rob-3 workover
Ezzauia workover, side tracks and new wells.
El Bibane.
SLK Workovers.

TW exposes more damaging info and expects ADM to be suspended tomorrow.

Try this one.

https://twitter.com/TomWinnifrith/status/1464211264624893959