Member Info for Hedgehog100

"Looking like 0.75p might be on the cards sooner than anticipated again eh!!!"

But how can it be sooner than anticipated, when no one has been anticipating it?

Thanks NicetoMichu,

But why so negative about Takeyourbets?

He may not post the detailed research and analysis of some others, but shorter, 'commentary' type posts can have a role to play, and can help to keep a board more alive.

It would be different if he was giving ridiculous short term price targets, but he is not.

To cross 2p by the end of the year &/or at the grant of the Tilapia licence, is not unreasonable.

O&G shares are still delivering some huge one day rises on big news, even in the current bad market.

Moreover, the information Takeyourbets posts is at least accurate, unlike some of Mls's.

And Takeyourbets did correctly call ZEN's recent bottoming.

Recent Share Trades for Rockpool Acqui (ROC)
Date Time Trade Prc Volume Buy/Sell Bid Ask Value
07-Sep-22 15:44:08 6.199 19,850 Buy* 5.00 6.50 1,231 O
07-Sep-22 14:07:22 6.199 15,955 Buy* 5.00 6.50 989.05 O
07-Sep-22 11:37:35 6.25 7,865 Buy* 5.00 6.50 491.56 O

A bit of ROC buying interest today, after yesterday's very encouraging RTO update, has moved its s.p. back up to 6p(+4.35%).

ROC is still trading at significantly below its net cash, despite its very low cash-burn, and excellent RTO prospects.

And I would full expect a RTO here to move ROC's s.p. into double figures.

"Performance of the Business and Position at the End of the Year

The Company reported a profit of £34,215 for the year ended 31 March 2022 (2021 – loss of £36,077).

The Greenview loan and accrued interest were fully repaid during the year. Net assets as at the year-end were £909,264 (2021 - £875,049), with £1,206,254 in cash balances held at that date (2021 - £24,983).

Loans of £88,226 were outstanding at the year-and (2021 - £85,976)."

https://www.rns-pdf.londonstockexchange.com/rns/4682Y_1-2022-9-6.pdf

"ROCKPOOL ACQUISITIONS PLC CHAIRMAN’S STATEMENT

I hereby present the report and financial statements for the year ended 31 March 2022. During the year the Company reported a profit of £56,654 (2021, loss of £36,077). As at the Statement of Financial Position date the Company had £1,206,254 of cash balances.

The most significant development during the year was the decision, announced on 11 January 2022, of the Board of Rockpool to abandon the proposed acquisition of Greenview Gas Limited (“Greenview”) which it had been contemplated would be made pursuant to the option agreement entered into in January 2019. As the Board had previously indicated to the market, the Company had wanted for some time to progress with the completion of the acquisition, but, for various reasons, including a lack of funds available to pay the associated costs, it had not been possible to do so. The Board eventually decided to abandon the acquisition of Greenview in favour of seeking an alternative transaction. That course was made feasible by Greenview finding a party to provide funding to Greenview in order to allow it to repay the debt it owed to Rockpool. That repayment (with a small premium coming to £1.2m in total) and the termination of the option agreement were announced just after the end of the financial year, on 1 April 2022.

The receipt of that sum settled all of Greenview's liabilities to the Company and enabled the Company to settle all its own financial obligations and leave it with funds that are anticipated to be sufficient to cover the transaction costs of making, in due course, an alternative acquisition (on the assumption that the consideration for such an alternative acquisition would consist wholly of new shares in the Company) and of the Company's subsequent readmission to the market, and leave it with funds for working capital.

Following the termination of the Greenview acquisition the Company applied to the FCA for the lifting of the suspension of the Listing of the Company’s shares, and that suspension was lifted on 27 May 2022. The Company is now actively engaged in seeking alternative acquisition targets and anticipates being able to make an announcement regarding its progress in that regard within the next few months.

I would like to thank all those who have assisted the Company during the past number of years including advisers and creditors for whose support we remain grateful. I would also like to thank the shareholders for their patience during the very long period in which trading in the Company’s shares was suspended.

I look forward to a positive year ahead which will hopefully see significant progress for the Company and, potentially, the completion of an acquisition.

R A D Beresford
Non-Executive Chairman

6th September 2022"

https://www.rns-pdf.londonstockexchange.com/rns/4682Y_1-2022-9-6.pdf

6th Sep 2022 3:00 pm RNS Annual Financial Report to 31st March 2022

"Press release

6th September 2022

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

Rockpool Acquisitions Plc

Report and Financial Statements for the year ended 31st March 2022

Rockpool Acquisitions Plc announces its Report and Financial Statements for the year ended 31st March 2022.

The Chairman's Statement and full Report and Financial Statements are attached.

http://www.rns-pdf.londonstockexchange.com/rns/4682Y_1-2022-9-6.pdf

Ends -

For further information please contact:

Rockpool Acquisitions Plc
Mike Irvine, Non-Executive Director mike@cordovancapital.com
www.rockpoolacquisitions.plc.uk

Shard Capital (Broker)
Damon Heath / Erik Woolgar Tel: +44 (0)20 7186 9952

Abchurch (Financial PR)
Julian Bosdet Tel: +44 (0)20 4594 4070
julian.bosdet@abchurch-group.com

- Ends -"

https://www.lse.co.uk/rns/ROC/annual-financial-report-to-31st-march-2022-gbbsaqnkhyotd19.html

Ezhik,

I admit that I was relying on my memory, but I have just confirmed it with some research.

I have just checked the share price tables in today's edition of the "Financial Times", and for each share they just give one current share price, which is the MID price. (They do not include the bid/offer spread.)
And who can argue with 'The Pink 'Un' on such a matter?!

I have also just checked the latest edition of the "Investors Chronicle", and similarly, they use the MID share price as the headline share price at the start of their ' recommendation' articles on individual companies.
At the end of these articles, they go into more detail, but even here the main share price used is the mid prices, with the buy/offer price then shown as the 'touch' spread.

Similarly, share price charts are generally based on one share price at each moment in time shown on the chart, and the basis is the mid price, not the bid &/or offer price.

With respect to the IG piece quoted, it's really just a piece of badly-worded, ill-thought-out, fluff.
What it's really referring to it a "trade price": which will vary according to whether the market maker is buying or selling, and the size of the trade.
"A" share price can be subtly different from "THE" share price.
Publishers, chartists, etc., want ONE main share price to reference to, and there's no question that the standard approach is to use the MID price.

The bid price may sometimes (though not always) be used for valuing a portfolio.
Though if you're planning to hold a share for the very long term, the question of you selling it on the market is less relevant, so a mid price valuation is more appropriate.

I've said recently that the annualised value of ZEN's Italian gas production now, at the far higher gas prices we have moved to recently, should equate to a few/several million euros p.a.

Below is a more precise calculation I have attempted, which I would be grateful for any comments on.

From ZEN's 26.8.22 annual report, for its year end 31.3.22:-
"The Company sold 131,556 mcf of natural gas from its ltalian assets, as compared to 12,713 mcf of natural gas in the 2021 similar period."
https://wp-zenith-2020.s3.eu-west-2.amazonaws.com/media/2022/08/Annual-Report-Zenith-Energy-31.03.2022.pdf

Mcf = 1,000 cubic feet, so 131,556 mcf = 131,556,000 cubic feet.

Recent gas price in Italy, from 26.8.22 article:-
" ... Gas prices shot up this week to 321 euros per megawatt hour ..."
https://www.thelocal.it/20220826/italy-to-bring-in-new-aid-measures-as-energy-prices-soar/

One cubic meter of gas equals about 11kWh.
Divide by 1,000 to convert to mWh, = c. 0.011mWh.
Divide by 35.3147 for cubic feet, = one cubic foot of gas = c.  0.000311.5mWh.     
131,556,000 cubic feet x 311.5mWh = c. 40,979.7mWh
x recent gas price of 321 euros per megawatt hour = c. euro 13.15M.

This figure of EUR 13.15M, which equates to c. £11.5M., is even higher than I had thought.
But European gas prices were recently trading about up about fifteen-fold since the start of last year, and I have double checked my calculation.

"Price of a share is what you can sell it for if you are holding stock and what you can buy it for if you are looking to buy some."

So that's TWO prices at any one time.

That's not much use when you want to say what THE price is: which is why the mid price is the standard for this, unless the last trade is a UT (uncrossing trade), in which case that value is taken.

P.S. Do either of you have any research and analysis to post on ZEN?

Obviously you do need more help, Mls.

The price of a share is generally determined by the mid price, not the price at which a trade is dealt at.

That is really beginners stuff.

"Price: 1.00"

Mls,

The price shown next to your post should provide a clue.

Any more help required please feel free to ask.

"I've looked into this again, and I think that the difference of four is down to a differentiation of 'production assets' from 'exploration assets'."

That's obviously what you were saying too, Callit, so well done on correcting me!

ZEN's four 100%-owned gas-powered electricity generation units at Torrente Cigno are valuable production assets (especially now), but the company does seem to be referring to "properties" in a different way: i.e. gas concessions.

Thanks Callit.

I've looked into this again, and I think that the difference of four is down to a differentiation of 'production assets' from 'exploration assets'.

ZEN's website shows it has having nine gas production concessions in Italy (6 operated by ZEN, and 3 operated by someone else):-
https://www.zenithenergy.ca/operations/italy/

The other four you've flagged up are all exploration assets: 2 existing permits, and 2 permit applications.

It's also interesting that only 3 of the 9 'production concessions' are identified as actually producing: presumably the other 6 have produced previously, but have been mothballed.
And at one of these three (Torrente Cigno) the gas is being used to produce electricity, which means that ZEN's gas sales have apparently been coming from just two concessions.

So that makes ten identified Italian gas properties that could potentially add to ZEN's Italian gas revenues, compared to just two at present, a potential six-fold increase.

And as I said yesterday, the annualised value of ZEN's Italian gas production now, at the far higher gas prices we have moved to recently, would I believe equate to a few/several million euros p.a.
In addition to an extraordinary increase in ZEN's electricity income.
And with both the gas and electricity sales at whopping profit margins (93.5% for the electricity in August).

Africa is clearly going to have to be a/the major source for Europe to replace Russian oil and gas.

So an ambitious and aggressive expansion by ZEN in Africa could hardly be better-timed.

And one which could help to catapult ZEN to multiples of its current s.p.

It has both the expertise and funding to fulfil its ambitions, and seem to be well on the way to doing so already.

Good point, Callit.

ZEN's last credit rating upgrade announced was ten months ago, since when its finances and outlook have improved immeasurably.

So I would think that further upgrades could well be imminent, which would further endorse ZEN's stated mid-tier O&G company aims.

14th Sep 2021 2:20 pm RNS Credit Rating Upgrade

"Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; OSE: ZENA), the listed international oil & gas production company focused on pursuing African development opportunities, is pleased to announce that BCRA Credit Rating Agency AD ("BCRA") has upgraded Zenith's long-term debt issuer credit rating to 'B- with Positive Outlook'.

BCRA is an independent credit rating agency operating since 2003. The Financial Supervision Commission ("FSC") and European Securities and Markets Authority ("ESMA") have fully registered BCRA in accordance with Regulation (EC) No. 1060/2009 of the European Parliament and of the Council on credit rating agencies.

The BCRA report can be viewed here: https://www.bcra-bg.com/en/ratings/zenith-energy-rating"

https://www.lse.co.uk/rns/ZEN/credit-rating-upgrade-cjg2rh0u5rn1hu0.html

2nd Nov 2021 12:26 pm RNS Credit Rating Upgrade

"Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; OSE: ZENA), a company focused on building a production and development portfolio in Africa, is pleased to announce that Rating-Agentur Expert RA ("RAEX") has upgraded its debt issuer credit rating to 'B' with 'Stable Outlook'.

The RAEX report can be viewed here: https://raexpert.eu/reports/Press_release_Zenith_Energy_Ltd_01.11.2021.pdf

RAEX is an independent European Credit Rating Agency with more than 20 years of experience in the rating industry. It is registered with the European Securities and Markets Authority ("ESMA") and received ECAI status (External Credit Assessment Institution) in 2015.

Luca Benedetto, Chief Financial Officer and an Executive Director of Zenith, commented:

"We are pleased to receive an upgraded credit rating that reflects the positive work we have been doing in terms of strengthening our balance sheet and enriching our portfolio, as well as being a product of the favourable economics of our energy production operations due to the current high pricing climate. It is our intention to further improve our ratings as we deliver on our development objectives.

Our credit ratings are an important characteristic that will enable Zenith to utilise its debt instruments to a greater degree to fund its ambitious asset acquisition and development programme in Africa."

https://www.lse.co.uk/rns/ZEN/credit-rating-upgrade-2u16unmbgq4rl27.html

It's also interesting that they have waited until quite near the last moment before putting the conference call etc. back, allowing just two full trading days.

That suggests that right up until today they were hopeful that some imminent transformational news would be in time for the 8th. September.

Of course it still might arrive before then, but probably the company didn't want to cut the postponement too finely, so are being cautious.

I think that the way that ZEN's existing production is performing will make investors more confident about the company's ability to deliver on other fronts too.

ZEN's profit margins on its gas sales must be huge at current prices, like its electricity sales.

Costs for a set level of production will be fixed, and low, so all of the additional revenue from prices increases should translate into profit.

ZEN's profit margins on its August 2022 electricity sales were a whopping 93.5%.

("Electricity prices during the month of August 2022 averaged approximately EUR 538 per MWh, resulting in net revenues of approximately EUR 530,000. Zenith's current net production costs remain fixed at approximately EUR 35,000 per month.")

So ZEN can probably make more profit on each £10M. of electricity & gas sales than many companies make on revenues of £100M.

The market is gradually cottoning on to this fact, and a re-rate is underway accordingly, which likely has a long way to run yet.

Some "potential near-term progress" than ZEN was hoping for by the conference call etc. on 8th. September has apparently slipped slightly.

This clearly tells us that it is news other than the finals results and electricity production update, both announced last week.

So probably one or more of the significant growth catalysts to bring about a transformational leap in its size and revenues, as alluded to by the company recently:-

"BUILDING A TRANSFORMATIONAL PORTFOLIO
OF PROVEN REVENUE-GENERATING ENERGY
ASSETS IN AFRICA AND EUROPE

August 2022 Newsletter to Zenith Energy
Fixed Income Investors

Dear Investor,

I am pleased to report that the first six
months of 2022 have been extremely
positive for Zenith Energy as we have
continued to achieve record revenue
generation and associated profitability
from our energy production and
development portfolio in Italy and Africa.
The current energy pricing climate for oil,
gas and electricity has created
unprecedented cashflow for the Company
which it is reinvesting in its Tunisian and
Italian portfolios to maximise production,
as well as utilising its increased financial
resources to reduce its exposure to
short-term financial obligations and fully
service all its outstanding debt instruments.

The Company has a number of significant
‘growth catalysts’ between now and the
close of 2022 that might bring about a
transformational leap forward in its size
and revenue generation. This is especially
the case in respect of our long-held
business development objectives in the
Republic of the Congo, where we expect to
be awarded a new 25-year licence for the
Tilapia oilfield, as well as in other
jurisdictions where the Company is
reviewing potential acquisition
opportunities.

Whilst we have continued to proactively
execute our strategy of identifying
additional new assets to acquire, our
attention has equally been directed
towards developing the material
unexploited potential of the Company’s
existing energy production portfolio. It is
our expectation that drilling activities to be
performed in Tunisia later this year will, if
successful, provide substantial additional
value. Similarly, the gradual reactivation of
our Italian portfolio is also expected to
further increase our Italian production
revenue and profitability.

In summary, we intend to deliver value to
Zenith Energy investors by targeting
proven-revenue generating and low-risk
assets that have the potential to be
successfully developed with systematic
technical and financial investment, as well
as maximising production from our existing
assets.

I thank investors for their continued
commitment and support, and we look
forward to our future progress with great
optimism.

Andrea Cattaneo"

https://www.zenithenergy.ca/wp-content/uploads/2022/07/Newsletter-August-2022.pdf

5th Sep 2022 4:00 pm RNS Rescheduling of Investor Call to 28.09.2022

Zenith Energy Ltd. (LSE: ZEN; OSE: ZENA), the energy company with proven revenue generating production, exploration and development assets in Africa and Europe, provides the following update with regards to the forthcoming investor and analyst conference call (the "Investor Call"):

The Investor Call will now be held on September 28, 2022, at 09:00 AM BST/10:00 AM CEST via teleconference

Those wishing to participate in the Investor Call may register by accessing the following link: https://bit.ly/3QpegQX

The Investor Call will commence with the management team providing an update on the Company's recent activities and running through an updated corporate presentation (to be made available for download on the morning of September 28, 2022, at www.zenithenergy.ca) and will conclude with the answering of questions submitted prior to the Investor Call.

The information discussed during the Investor Call will be restricted to publicly available information already communicated to the market by means of regulatory news prior to the date of the Investor Call.

https://www.lse.co.uk/rns/ZEN/rescheduling-of-investor-call-to-28092022-rfjcvlxaelrzjuc.html

Yes again, Callit.

It can be confusing, and it could be helpful it ZEN also reports its gas sales revenues, in addition to its electricity revenues; especially as its gas production, and prices, have been going up so much - and with plenty more to come on both fronts (and the same for electricity prices.)

I don't know how much they would have got for that gas last year, but I would think at least a million euros or so, even allowing for much lower gas prices then.

The annualised value of that level of gas production now, at far higher gas prices, would I believe equate to a few/several million euros p.a.

And ZEN intend to further aggressively ramp up its gas production.
Its ten-fold increase last year shows how adept it is at doing so, and combined with further gas price increases the potential increase in gas income is extraordinary.

And coming on top of an extraordinary increase in electricity income.

From ZEN's annual report, dated 26.8.22:-

"Production activities
During the financial year ended March 31, 2022, the Group:
a) The Group generated revenues from oil and natural gas of CAD$8,239k (2021 - CAD$596k)
b) As of March 31, 2022, inventory consists of CAD$5,690k (2021 - l,057k) related to 116,391 barrels of crude oil that has been produced but not yet sold in Tunisia.
c) The Company sold 131,556 mcf of natural gas from its ltalian assets, as compared to 12,713 mcf of natural gas in the 2021 similar period."   

https://wp-zenith-2020.s3.eu-west-2.amazonaws.com/media/2022/08/Annual-Report-Zenith-Energy-31.03.2022.pdf

https://www.zenithenergy.ca/investors/reports/