Member Info for itisagame

That’s a bit harsh, you should be thanking him for the great vehicle he set up, wasn’t his fault it was ruined by the following management team and why you are buying it for less than a terrace house in middle England.

The Product was created and good to go at his exit point.

But Zen has to clean up from the interim management:)

Can potentially see zen either playing hard ball with debt renegotiations or using the £12.5m intercompany loan to forclose on aaogc, as it will be it’s biggest creditor, then take the assets and few weeks left on the license and leave the remaining To be liquidated.

Ticking up in the background?

Wait for Africa to be in full swing that number will treble, it’s how you get the bribes paid lol.

Looking at Zens news today and the placing a few weeks back they should have the £200k to pay Forum for Congo when they need to.

Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; TSX.V: ZEE; OSE: ZENA-ME), the listed international oil & gas production company focused on African development opportunities, is pleased to provide an update on its operations in Azerbaijan.

The Company continues to operate the Contract Rehabilitation Area ("CRA") generating a daily production of approximately 180 barrels of oil per day.

As announced on March 2, 2020, the Company is currently formalising the handover process of the CRA (the "Handover") to SOCAR. Zenith expects the Handover to be completed during the next 20 business days.

Upon completion of the Handover, the Company will no longer have any oil production operations in Azerbaijan and all field production personnel, approximately 171 employees, will be transferred to SOCAR. The Company can confirm that all salary obligations towards the aforementioned employees are fully satisfied at this time.

The Company is pleased to confirm that its Azerbaijan subsidiary has recently received two payments for a total of approximately US$350,000 from SOCAR.

It is anticipated that total receivables from oil sales towards Zenith's local subsidiary will amount to a total of approximately US$1,200,000 once the Handover is completed and that payment will be received shortly thereafter.

can you see Gati just eventually taking the whole company for debt forgiveness once the bond repayments due?
or will the $3m deposit that they eventually (hopefully) will have due back over time and proceeds from the 11% be enough to pay off the bond, interest, running costs and salaries for two years?

You cant say AC didnt earn his wage with the Congo deal. just think you got it for less than the latest company contributions to the AAOG directors pension fund. ;)

One thing that concerns me with the acquisitions (they are cheap headline prices im not doubting that) is AC doesn't mention the debt exposure that each acquisition exposes Zen to,

EG Congo, hes happy to mention £12.5m inter company debts, and the $5.3m owed by SNPC but only AAOG mention the $3m debt overhanging AAOGC which Zen will have to settle.

i saw on Coros results yesterday and made a few notes about the Italian asset but im not as clued up on that one, or the latest announced acquisitions which detail nothing about any existing debts.

Im not complaining about the headline prices that Zen is paying, i cant, they are probably the minimum possible to cover the legal costs of signing the assets over.

but more details on what hes taking on would be nice. no one wants to one day see an RNS for placing or bond proceeds going towards company debts that no one else knew about or that were not ever mentioned before. Or have to wait till the results when the truth is revealed.

and Im still getting robbed £1.08 at the pump a liter in the UK, a friend who lives state side paid under a dollar a gallon at the pump yesterday, some places have / had gas at ~85c a gallon.

May WTI futures on Bloomberg ended negative $37 barrel.

First time ever. this is incredible.

reports of negative $36 a barrel, this is incredible

on oilprice.com, has anyone ever seen that before?

WTI now $1.50 on oilprice.com at that price buy it all up, crack open an old well and pump it back in!

I guess nearly everyones storage around the world has hit full capacity, this is a once in a life time "blip" that i have never seen before. It was higher in 2008 in peak financial melt down, it will recover in time.

Serious signs and frankly scary times for alot of people, but flip side is it is now the perfect time in the cycle for new acquisitions, wonder what else AC is trying to pick up.

Gut feeling I just know there will be a placing being sold in to any volume here to pay for this which is why it’s not rising, but I can’t knock the savings and deals that seem to be being pulled off, it is starting to look very interesting.
And In the end if placings can pay for the acquisitions and the bonds can fund the operational costs that are not met by production it might just work out well when oil markets recover, that is why it’s listed after all.

I’m still trying to work out how £200k for 100% is better than £1m for 80%. And I’ve given up on how this is still better than aligns offer.
Even Worse it seems to be our board changing the deal each time, not even zen renegotiating. And the difference would have paid the dues on the remaining 20% and left it as a free carry

But as we all know, it’s clear the idea was to cripple the company, not once the board had taken any pay cuts or have not shown any generation of shareholder value.
If their pay was reduced for not reaching the milestones set in the AOA , and they didn’t pay their self extra to make up the difference, then the licence renewal would have been paid for and the debts would have been eliminated by a small placing.

Is £200k better than liquidation and £0?

Yea i still dont know where i stand on Zen really there are parts i think are good but some i think are terrible, im trying to make my mind up. maybe its because im an AAOG holder that saw and wanted a potential 15%-20% stake in Zen for Congo, and im still recovering from the hard kick to the balls and counter-counter offer that is sold as seen £200k *cash*.

Pros -
- Congo really has the potential to be a Gift to Zen once the cash is spent on it.
-yes AC seems to be able to pull off some good deals
-somehow has the B+ rating still and the bond facility
-somehow manages to get investors to keep piling money in.
-AC has been putting himself out there and has been on the PR drive this year, so effort is being made.
-He is buying stock.
- should have some cash from Azir coming
-multiple deals on known and unknown terms on the table or yet to be revealed
- Zen is very much still trading

Cons
-placing after placing at every time possible, each time wiping out the order book and preventing a natural share price rise, and its capital for any and every reason possible.
- it seems to be the same group of "high net worth investors" each time, and the amount of stock they have taken and not TR1 reported means they are just flipping them - probably even forward selling them.
-news from December - March was very erratic, with acquisitions announced frequently, vague terms, no mention of how to actually finance them, promises made with cash that doesn't exist yet. he put ~$25m of commitments on the table while the company couldnt pay its Azir workers.
- as it turned out at that same time Azir was basically bust and AC kept it from investors until past the last minute, but atleast that explained the erratic behavior and need for the acquisitions announced.
- his pay. (yes thats an issue for most listed companies and a direct consequence of general greed when it isnt your cash you are spending, and failure to have all directors pay linked to company milestones, share performance, debt reductions etc etc.)
- i just dont know if i would trust AC with anything if i did business with him, especially if i offered him a credit line.
- failed attempts to raise capital last year, and the whole not paying of agreed "finders fees " surrounding last years partial capital raises (IE mr italian socks posts)
- still not any completed deals or have any noteworthy producing assets.
- has failed on many past promises
- share price reflects the above and more.
- i dont know how but i have a feeling Sefton is involved here, some way somehow.
- that LOI rns, followed by a placing at roughly 25% of the LOI price days after, i would like to be proved wrong but that seemed like an obvious way that they used to forward sell another placing. where are the TR1s?

Id also like to see the dilution risk from Italy reduced, i know its £3.5m at a 40% premium to the then SP so could potentially be used as a rampathon rns but id say AC could earn his wage on

Never got an update on SMP or Askell.

SMP is a Congo issue and will be gone on disposal but wasnt the Askell claim an AAOG plc issue?
is it still a problem / gone or gave up? / passed on to Atog? / told where to go?

I had to let this sink in over the day, and im still in shock. compare the Original and Revised Deal.

27/12/2019
Acquisition of AAOG Congo RNS
Costs to Zen
80% of AAOG congo for £500k + £500k in Zen shares.
+ cover $1.1m towards a $5.5m work program
+ up to $400k (being 20% of license renewal up to a $2m cost)

13/1/2020
Put and Call option
remaining 20% of AAOG congo for either
£1m in Zen shares
or
£2.5m in Zen shares.

Zens costs to AAOG under the previous terms would have cost Zen ~£3.875m - ~£5.375m

NOW Zen has it ALL for £200k! 100% of AAOG Congo.

£200k! thats just a couple of months of ACs wages and expenses.

And this has removed £3.6 - £5.1m of committed liabilities and dilution due to AAOG under the deal. - That alone is a potential long term saving of Zens current Mcap.

Yes Zen is taking on $3m of debt and needs $2m for the license fee to find but they have saved more than that on the amended deal terms. but once these are sorted Congo and drilling is on way congo is a £20m mcap asset on its own.
Im still in shock, this is truly an incredible feat to pull off (it almost feels like fraud!).

- Ref the $5.3m SNPC debt : AAOG (last year before the brake downs) was negotiating with SNPC to convert part of their debt for license equity last year, so i expect AC to be all onboard for that and Zen to end up with 80-90% of the license equity. (thats just IMO and speculation)

- And Part of the $3m debt AAOG congo has is $700k owed to SMP (the previous drilling company who screwed up the drilling) who AAOG have taken to court to counter sue for up to $3.1m of costs (the last update from AAOG was due was in Feb but we were not informed of any update) - No doubt AC will renegotiate with this too.

And dont forget it was only February 26th you had "Zenith intends to commence drilling operations during April 2020 following Completion. " this might be delayed a month or two but there must be something AC is working on.

And on AAOGs side Forum are obviously wanting to speed up the RTO process once this is sorted.

25th April last year.

Negotiations to exchange a portion of SNPC's equity interest in the Tilapia field in exchange for the forgiveness of the remainder of the debt outstanding remain ongoing.